To get relations back on track, the US and China must pursue a more nuanced approach to their bilateral economic policy; here are five steps to do that.

The pandemic has accelerated the US pushback against China across the military, economic, and communication dimensions to new heights. There are serious risks of a US-China race to the bottom.

The coronavirus pandemic deflated President Trump’s touted trade deal, as data suggests that Beijing will likely fail to meet key commitments due to suppressed global demand. If coronavirus kills the US-China trade deal, other political and economic disagreements could escalate the US-China rivalry into a potential Cold War.

The stability that was expected from the signing of the Phase One trade deal is now a distant reality in the wake of COVID-19. The U.S. and China are entangled in blame games and trade disputes, setting the stage for further, more devastating escalation.

Tariffs and blame-games have only complicated China and the United States’ response to the novel coronavirus outbreak. Instead, cooperation could not only contribute to improving global and economic health but also help resolve other issues that are eroding the bilateral relationship today.

The U.S. has long reigned supreme in global finance, but a new challenger to its hegemony has emerged. China’s attempts to lessen its and the world’s dependency on the dollar and especially America’s willingness to abuse its stewardship of the global financial system have influenced a dangerous weaponization of financial networks that promises a rocky road ahead for both countries.

The outbreak has added new unknowns to the already uncertain phase-one trade agreement. If it leads to global recession and political unrest, the phase-one trade agreement may not mean much.

The world economy has clearly caught a cold. The outbreak of COVID-19 came at a particularly vulnerable point in the global business cycle. World output expanded by just 2.9% in 2019 – the slowest pace since the 2008-09 global financial crisis and just 0.4 percentage points above the 2.5% threshold typically associated with global recession.

It’s not a question of wanting to follow through but having the ability to do so, given the complex downward pressures brought by coronavirus epidemic.

The trade deal has been signed, but recent factors, like the novel coronavirus, make it challenging for China to meet its trade requirements. Instead of moving forward, the US-China relationship has moved sideways.