Don't let US-China trade disputes turn into a shooting war | Responsible Statecraft

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Analysis | Video Section

The U.S. and China are in a fierce competition over who dominates the global economy. While Washington has rightly zeroed in on the need for supply chain independence, China's unfair trade practices, and intellectual property theft, hawkish voices have blurred the lines between economic and security concerns, and the Biden administration's economic "fixes" have tended to be to impose exclusionary measures that end up pushing Beijing even further into a defensive crouch.

In this video, the Quincy Institute's Jake Werner talks about how this is putting the two powerful nations into an escalatory spiral.

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Top photo credit: Commerce Secretary Howard Lutnick on CNBC, 8/26/25 (CNBC screengrab)

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His suggestion in a recent media appearance to partially nationalize the likes of Lockheed Martin is hardly novel. The economist John Kenneth Galbraith argued for the nationalization of the largest military contractors in 1969. More recently, various academics and policy analysts have advocated for partial or full nationalization of military firms in publications including The Nation, The American Conservative, The Middle East Research and Information Project (MERIP), and The Seattle Journal for Social Justice.

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As President Trump’s second term kicked off, all signs pointed to a continued upswing in U.S.-India relations. At a White House press conference in February, Indian Prime Minister Narendra Modi spoke of his vision to “Make India Great Again” and how the United States under Trump would play a central role. “When it’s MAGA plus MIGA, it becomes a mega partnership for prosperity,” Modi said.

During Trump’s first term, the two populist leaders hosted rallies for each other in their respective countries and cultivated close personal ties. Aside from the Trump-Modi bromance, U.S.-Indian relations have been on a positive trajectory for over two decades, driven in part by mutual suspicion of China. But six months into his second term, Trump has taken several actions that have led to a dramatic downturn in U.S.-India relations, with India-China relations suddenly on the rise.

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