Trade protectionism is now at the center of a deteriorating US-China relationship. After the announcement of global tariffs on US steel and aluminum imports, China’s reaction will define the scale of potential escalation. More significant risks lie ahead, with a potential “fine” on China’s intellectual property theft expected in the coming weeks, and legislation strengthening foreign investment scrutiny pending. Bilateral cooperation in technology and research-related industries is breaking down, with far-reaching trade and investment consequences.
