The trade spat escalated earlier this month when Trump hiked tariffs on Chinese goods to a whopping 145%. China responded with 125% tariffs on U.S. goods and other countermeasures. “This is a game of chicken,” Yasheng Huang, professor of global economics and management at MIT, told ABC News.

China trade tensions have drawn intense attention, business leaders who focus too narrowly on tariffs risk missing a deeper, longer-term shift. China’s economic strategy—centered on reducing dependence on foreign firms,