James Nolt argues that what Trump seeks from China in the trade war is managed trade, not free trade. Unfortunately for China, the model of a “managed trade” solution crafted during the 1980s between the U.S. and Japan is not an option.

As the trade war escalates further, China considers options that could result in the destruction of both its own and the American economy.

U.S. companies operating in China generally oppose the Trump administration’s proposed tariffs and advocate for engagement with Chinese businesses. However, CEOs have become more vocal in support of Trump on specific issues, such as market access and regulations.

Both sides think they can win a trade war. One of them is wrong. The war will show which one that is.

China-US trade and global trade will stay on track, because President Trump simply can’t dictate everything.

Rather than resorting to open confrontation or backing down, China will keep up dialogue with the US in the hope of finding common ground, while focusing on its own goals for development.

For political reasons, Trump and Xi will find it hard to back away from this fight.

Some observers worry the Chinese government will use devaluation of the yuan as a weapon in the trade war. It won’t.

The main risk in implementing protectionist policies based on security considerations is that the “national defense card” will likely be overplayed, curbing legitimate trade and investment in the name of safety.