The recent inversion of the yield curve in the United States – with the interest rate on ten-year US government bonds currently lower than that on short-term bonds – has raised fears of a possible US recession later this year or in 2020. Yet, paradoxically, a downturn in America could help to improve bilateral economic relations with China and cool the two countries’ escalating trade dispute.

The US has labeled China a currency manipulator, and the trade war does not seem to be ending anytime soon. This may not be the beginning of a US-China currency war, but is definitely another low point in the US-China trade war.

Vice Premier Liu He responds to higher tariffs from U.S. Trump also called for U.S. companies to move out of China.

Trade talks between China and the United State have morphed beyond trade disputes, the solutions require the political will from the highest level. While working for a positive outcome, both parties should be prepared for a “no deal” scenario. The window of opportunities is closing.

Chinese foreign direct investment in the US has seen a profound decline over the past few years, but President Trump’s unorthodox methods do not account for the entirety of the issue.

With the US’s new classification of China as a “currency manipulator,” the question arises: is such a designation accurate? Could it lead to success for the Trump Administration, or will it only serve as an irritator that will open up a new fight with China?

The deepening US-China trade war poses a significant challenge to the health of the global economy A new global recession could push both sides to the negotiating table, or it could provoke another wave of retrenchment and protectionism.

Zhao Minghao, in an analysis of the most recent strategic moves made by the Trump administration regarding trade with China, declares that an escalation of the trade war will be detrimental to both nations, with a strong impact on the average American consumer with the potential for a quickly approaching recession. In pointing out that not only are Trump’s decisions made with strong American opposition but are also done so arbitrarily and counter to the judgements made by global organizations like the IMF, Zhao cautions that a trade deal is not the end goal — rather, Trump desires a decoupling of the two nations’ economies.

Over the next decade, new perspectives on sovereignty, human rights, and intellectual property will revise current legal norms. We are not in a ‘Cold War,’ but Beijing is courting US allies away from liberal democracy with investment, as globalization and its growing pains prove unpopular and spread populist politics across the globe.