Avoiding Unnecessary Conflict in Trade Relations

The current US-China relations are characterized by escalating tensions and a groupthink mentality in both Washington and Beijing, reminiscent of Cold War dynamics. While legitimate concerns exist regarding China's industrial policies and practices, such as overcapacity and unfair competition through subsidies and intellectual property theft, the narrative is overly simplified. China's manufacturing prowess, particularly in electric vehicles, stems not only from subsidies but from fierce domestic competition. As China's economic growth slows, it seeks new markets for its products. This prompts a discussion on the implications of China's potential dominance in sectors like green technology and electric vehicles, raising emotional and national security concerns for the US and Europe about the influx of Chinese goods.