A trade war with China has dangerous implications for the global economy. What began more than a year ago with President Trump’s decision to impose tariffs has become an unpleasant economic reality for many businesses.

Recently, the U.S. labeled China a “currency manipulator.” But an even larger long-term threat comes from China’s aggressive espionage offensive that is playing out in behind-the-scenes as of the U.S. and China struggle for global dominance.

Our guest is Elizabeth Economy, a senior fellow and director of Asia studies at the Council on Foreign Relations in New York. Her most recent book, “The Third Revolution: Xi Jinpeng and the New Chinese State”, explains the background to recent dramatic changes inside China.

She is among a distinguished group of China specialists who once favored engagement with Beijing, but are now calling for the United States to take a more forceful approach as China attempts to undermine democratic values. We discuss the best ways to navigate this relationship.

"Managing this relationship is essential," says Elizabeth. "It cannot allowed to it to spiral down too far."