The three major stock indexes in New York all closed with falls of over two percent on Friday. The Dow Jones industrial average plummeted more than 700 points in mid-day trading. The US capital market was cast into a storm of clouds, as money evaporated into thin air. It's no wonder that one New York Stock Exchange trader was complaining during an interview with CNN about US President Donald Trump threatening tariffs on 100 billion US dollars' worth of imports from China.

The Trump administration is picking fights around the world. Shortly after he took office, the US Department of Commerce launched a Section 232 investigation into imported steel and aluminum products, and attempted to revise its free trade agreements with its allies. Of course, obedient allies such as South Korea agreed to his demands to avoid greater losses. But the European Union, Japan, and even Argentina and Mexico have been resisting his pressure. So the Trump administration quickly revised the terms of its Section 232 investigation, and gifted some countries exemptions.

As it turns out, this was only the prelude. The real climax was the launch of a Section 301 investigation against China. In this investigation, the Trump administration hasn't even tried to hide its real target -- China's "Made in China 2025" program. Naturally, China has reacted strongly to this provocation, saying repeatedly that it's not afraid of a trade war and vows to "fight to the end." This has come as a surprise to the Trump administration.

 It seems that President Trump's "reality show" is failing to convince its viewers. In the year since he took office, the investigation into the "Russiagate" scandal has been like a shadow he cannot shake off. Without his tough statements about the world beyond America's borders, what does he have to tell his supporters during the upcoming midterm elections? Due to his administration's tax cuts, US debt has surpassed 21 trillion US dollars, and may continue to grow at an exponential speed. It seems unrealistic to expect that the US can pay off all its debt. What's more important is that an increasing amount of debt will certainly influence the value of the US dollar: Instability or a loss of the leading status of its currency will certainly be an unacceptable outcome for the US.

 At present, the best strategy for Washington is to keep a low profile and be diligent and thrifty in running its national household. For instance, it can stop being lavish with its spending, make better use of its competitive advantages, and work hard to improve its production efficiency. It can also guarantee the kind of fair competition that would benefit not just its own people, but people around the world. This is the essence of the world's efforts to promote globalization and oppose trade conservatism. 

Unfortunately, the US has strayed off the right track. Instead of seeking cooperation with China, it's attempting to take advantage of its position as a global hegemon to obstruct China's development through trade frictions or even a trade war. But the world innovation center will continue moving eastward toward China. China has laid a solid economic foundation. Its government and its people continue to invest heavily in scientific research. It has a comprehensive manufacturing industry. There are millions of bright young university graduates entering the workforce each year. And China is shaping up to be home to the world's biggest domestic market.

The Chinese people believe in their hearts that they will see their country thrive and that this requires good solid work, which is why China has been the world leader in patent applications for several years in a row. 

The Trump administration may not give up easily on its efforts to obstruct China's economic development. There will be more acts to play in their performance. But Beijing will not be deterred by the US president's "reality show" trade war.

(Bian Yongzu is a research fellow at the Chongyang Institute for Financial Studies at Renmin University of China. The article reflects the author's opinion, and not necessarily the views of CGTN.)