By turning inward and prioritizing a few domestic factories over the larger dynamics at play between the U.S. and China, President Trump seems to be fighting the small battles and conceding the bigger ones.

As the role of the United States in the international community grows increasingly isolationist -- and President Trump remains a vocal critic of international aid and development programs -- some countries are looking to Beijing in hopes of securing fast financing for infrastructure development projects. However, as the authors of the report warn, many of China’s loans are given under less-stringent conditions than more-established Western multinational lending institutions such as the World Bank or the International Monetary Fund.

Both China and the U.S. have instituted a waiting period before the $50 billion tariffs take effect, with the hope that negotiation may prevent either administration from having to implement them. How likely is it that the countries will come to an agreement?

While Xi’s speech at the Boao Forum did not outline any particularly new or bold initiatives, policy makers in Washington, D.C. should take these market opening moves as the basis for negotiating an agreement.

The world will soon witness a historic test of wills between China and the United States. At stake is the strategic leadership of East Asia and, eventually, the international order. On both North Korea and trade, China is set to come out on top.

China plays a positive role in the world system.

China has the means and the will to take the US on.

President Trump, whose popularity has recently risen, according to polls, still feels that he is a hero who dares to challenge China. He seems to be unaware of the danger of economic instability.

Although the implementation date for both countries' tariffs remains unclear, industries on both sides are bracing for a damaging blow to the global economy.

As RAND points out, government subsidization of aircraft manufacturers is a conflict between Boeing and Airbus that the U.S. and E.U. have yet to resolve. If they do not establish norms now, there will be little recourse against generous Chinese governmental support of its aerospace industry in the coming years.