Gerard Baker

Chasing the dragon

But America's new strategy towards China could actually work

issue 29 June 2019

It will be all smiles when Donald Trump meets President Xi Jinping this week in Osaka at the annual meeting of the G20: a show of comity for the cameras and financial markets. The two are midway through one of the biggest trade wars that the world has seen in recent years, with the US imposing tariffs on $250 billion of imports from China and Beijing retaliating in kind. It’s possible that some sort of truce will be reached, as it was when the two men met late last year. The next stage of escalation — additional tariffs, or worse — may be postponed again.

Don’t be misled. The tariff fight is only the most visible, outward sign of a much larger struggle. Security specialists are clear that the new realities of global power revolve around the age-old question of whether these two superpowers — one established, one emergent — can co-exist peacefully, or whether some form of conflict is inevitable, by accident or design.

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