Significant differences exist between official Chinese and U.S. trade statistics on the magnitudes of the China-U.S. trade balance in goods as well as in goods and services. These differences arise from a number of factors. First, the convention that exports of goods are measured on an FOB (free...

Some believe in the "Thucydides Trap": the idea that, since a rising power will challenge the dominance of an established one, a China-U.S. trade war will be inevitable. Being the largest and the second largest trading nations globally, the U.S. and China are in fact each other's most important...