As for the future of the trade war, based on the present situation most people believe that it is a long and arduous process. Experts have described 3 possible scenarios, namely, reaching a compromise, further escalation and complete deterioration.
Most of them think there is a greater possibility of reaching a compromise. This scenario is based on previous experience that both sides showed a genuine willingness to negotiate. In addition, to secure a leading position in the mid-term election at the end of the year, Trump will try his best to consolidate the victory he previously achieved in the trade war and pacify domestic businesses and farmers to whom the war caused damages. On the other hand, the Chinese government demonstrated sincerity regarding the negotiation. After all, the Chinese Confucian culture, which has thousands of years of history, emphasizes reconciliation.
As for the scenario of further escalation, it is also likely and it seems that the war is now moving in this direction. Further escalation will lead to suffocated Sino-U.S. trade and transaction in technology between them.
If the vicious spiral continues, though not great, there is a possibility of complete deterioration. The consequence is the return to the "cold war", with bilateral relationship cut off. Thus, both countries would focus on their domestic markets, and the operations of global companies would be affected.
So, how will the trade war impact China’s policy, economic growth and the development of domestic businesses now and in the future?