If effective policy measures can't be taken to contain it, the risks to the world economy caused by the escalation of protectionism could severely disturb the world in 2018.

The U.S. and China are both vying to develop comprehensive national security strategies which incorporate artificial intelligence (AI) developments. However, their approaches differ in investment strategy, cooperation with AI leaders, development of talent, and anticipation of potential challenges. Differences in policy implementation will likely determine the leader of the upcoming AI revolution.

It is clear from this year’s Davos conference that while America has shifted its attention from maintaining the world order to strengthening its domestic economics, China is making use of the “leadership vacuum” and trying to convince the world that it is qualified.

How did the US economy do in Trump’s first year?

Chinese companies have become major targets of the CFIUS review process in recent years. This may continue or escalate if Congress passes the Foreign Investment Risk Review Modernization Act.

Despite the high profile rejection of the MoneyGram acquisition, Beijing’s limits on capital controls have demonstrably killed more deals than U.S. national security concerns. Though China’s concern is understandable, it simply does not hold up to factual scrutiny that Beijing is targeted any more than other countries.

China plans to set up international courts to deal with disputes arising from the execution of BRI.

President Trump’s long-held views and campaign words signify heavy political pressure to shrink the U.S. trade deficit. Additional and unprecedented steps will be taken in 2018, primarily directed at China. But the trade deficit, especially the bilateral Sino-American deficit, may not budge.

The imposition of so-called safeguard tariffs on imports of solar panels and washing machines under Section 201 of the US Trade Act is directed mainly at China and South Korea.

Latest AmCham China survey developed in collaboration with Bain & Company finds greater optimism about future of U.S.-China relations