Is a new iron curtain descending on East Asia? Can we go back to the hysteria of McCarthyism? Well, anti-globalization and protectionism start to carry overtones of ideology in the camouflage of national interest. 

The New York Times says the White House will consider policy restrictions on academic exchanges with China, citing the Duke case of stealth technology to justify a zero-sum game. The FBI has started to suspect almost all Chinese students and scholars who are involved in scientific research in the States and says they are allegedly spying on the US's digital privacy. 

Many observers are pessimistic about the prospects of the ongoing trade negotiations between Beijing and Washington since China would never give up its Made in China 2025 Initiative. Beijing will not suspend state subsidies for high-tech research to upgrade its value chain in manufacturing. The US says it will not accept any industrial policies by the Chinese government. But the issue is whether the US federal government will stop its hefty budget for the military. No double standards can be accepted in leveling the playing field. 

Another issue is whether the sole superpower wants to keep the world economic order open and free for competition? One hallmark of globalization is free movement of human resources and sharing dividends of scientific progress regardless of ideology. China is prevented from improving its low-value added Made in China products. Innovation by individuals will be stifled by visa restrictions as Mr. Trump says he will never give up barriers against immigration to put America First. What is even worse is President Trump is backed by a bi-partisan consensus. Co-evolution through constructive competition remains one viable option but on the condition that China is reduced to a remote second or even third trailing far behind the EU. Chinese policy makers would find it difficult to swallow that bitter pill. Another controversial issue is whether neo-liberalism is receding into history and macro-regulation by the visible hand will be given a second thought when even Franklin Roosevelt opted for state intervention in times of crisis. China needs to draw inspiration from history.