There is more uncertainty about the future of global and regional trade systems than at any time since the current rules-based order was created in the aftermath of WW2. As trade wars loom, the world’s two largest trading powers, China and the United States, pursuing “America First” trade policies appear on different and discordant paths. China has gamed the system and is pursuing mercantilist policies in an effort to dominate the technology-driven economy now taking shape. The rules-based trade system brought unprecedented growth and prosperity over the past seven decades. If the world’s largest trading power, China, cannot accommodate itself to rules and standards sought by much of the world, this China Challenge renders inclusive regional and global trade architectures increasingly problematic.
