The latest escalation in US-China economic frictions points at worrisome trends. In the short run, US allies may benefit from US-China economic tensions, but serious dangers lie ahead.

American leadership helped build the multilateral world order after World War II, but now US unilateralism — spurred by domestic partisan divisions — is undermining the UN, the WTO, and accords on Iran and climate change. US allies’ continued cooperation on a successor to the TPP, and China’s proposed Belt and Road Initiative, show that the world will continue down a multilateral path, no matter if the US swerves off onto a unilateralist road.

The Trump administration’s “America First” style of unilateralism has alienated even longtime European allies. The leaders of France, Germany, the EU Commission, and China have all pledged themselves to support multilateralism — in a sign of the times, Trump’s America is left out in the cold.

Centuries of Western dominance are now fading as developing countries emerge onto the world stage. Despite military and fiscal crises, major powers have great opportunities. They must seize this moment of flux to build upon the accomplishments of the past 100 years, to reform global governance and the rules-based international system, rather than letting impulsive unilateralism lead them to miss the chance for win-win cooperation.

In recent years, the United States has failed to reshape world affairs to its liking as it once could. From its inability to oust Bashar Assad from Syria, to its unilateral revocation of the Iran nuclear deal, to its unsuccessful pressuring of allies to block Huawei, we see an America that has lost its touch on the global stage.

Economic clout shifting to emerging economies, combined with great power peace, have begun to challenge the United States’ alliance strategy: for many longtime allies, the military aspect of national interest no longer comes first.

The liberal international order is not falling apart. However, one must also ask what exactly the “liberal international order” is.

The U.S. cannot continue to think that it will define the international system. China’s rising power means a change of world order is inevitable.

The UN and China should fill the vacuum the US is leaving.

But no one should be tempted by exaggerated projections of Chinese power. If the US maintains its alliances with democratic Japan and Australia and continues to develop good relations with India, it will hold the high cards in Asia. In the global military balance, China lags far behind, and in terms of demography, technology, the monetary system, and energy dependence, the US is better placed than China in the coming decade. In the Soft Power 30 index, China ranks 25th, while the US is third.