The two countries are entering a phase of intense competition.

Both the U.S. and China are engaged in a tariffs war. With no end in sight, American producers are operating in an environment of uncertainty. To many Americans workers and producers, the trade war hits much closer to home than most grand geopolitical disputes: local economies and jobs hang in the balance.

The US, in launching a ‘trade war’ against China, is appealing to the thinking and rhetoric of the late-twentieth-century - Cold War. This is inappropriate to the modern age, as the world has moved on and become multipolar. China does not itself seek hegemony, but has a number of options to build alliances with which to repel any US hegemonic ambitions, which are thus doomed to failure.

Because the US Dollar is the world’s reserve currency, economic turmoil makes people flock to it – even when that turmoil is created by America itself.

The US trade allegations against China are unsubstantiated by facts.

Escalating tensions between China and the United States will not benefit either. Instead, a party watching from the sidelines has the most to gain.

In the face of an uncertain global environment and systemic risks, China must continue its reform and opening up policy to ensure economic stability.

Though the Trump administration believes that the trade war can extract concessions from China, it also significantly harms the U.S. economy.

Overconfidence in his strategy of “maximum pressure” has led Trump to mistakenly believe that he can apply it to China.

As the threat of the seemingly inevitable trade war between the US and China looms over the horizon, a thorough analysis shows that not all is lost for China, and sheds light on who the true victor may be.