Martin Petersen
The United States and China are in what you might call a Cold Competition – if not a Cold War. One nation wants to preserve the world order established after WWII and its dominant place in Asia, while the other wants to alter significantly that post-war world order and replace the U.S. as the dominant power in Asia. The “tariff war” is just the latest round in that competition.
It is in the best interests of both parties to settle this dispute—something I believe both sides recognize—and three lessons from the history of U.S.-China relations suggest how this could happen. In both capitals we have strong leaders with outsize egos, and both are dealing with complex internal political situations. One leader’s style is more “in your face” and the other’s is all about saving face, a very important element of Chinese culture. Let me say that I have no issue with the Trump Administration’s efforts to achieve a redress of the U.S.-China trade imbalance—and other bilateral issues—and I wish them well. But I believe a change of tactics would give the U.S. a better chance of achieving its goals.
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