The View | How business leaders of the world can unite to end the trade war if the US and China are not up to the task

The ongoing US-China trade war bodes poorly for global economic growth. There are steps we can take to prevent the current tit-for-tat escalation from becoming a full-blown cancer that sickens the global economy – but action and leadership is needed, and fast. Otherwise, the governments of the world’s two largest economies risk badly draining global growth.

The recent phone call between President President Xi Jinping and US President Donald Trump offers hope that further friction can be set aside. However, previous conciliatory measures have shown themselves to be momentary reprises rather than sustainable improvement. We hope this time will be different. But if history repeats itself, where can the needed leadership come from when governments fail to provide it? From a group which has stepped up in previous contentious moments in history: the business community.

Thus far, China and the United States have acted in shortsighted ways. In the US, the current tariff war with China seems to be a feud without a solution, not to mention possible limits on migration and tighter rules for the transfer of information or scientific knowledge that drive innovation.

Within China, there are mixed signals. In some sectors, there have been improvements in transparency and harmonising with international norms, and some modest positive steps on intellectual property but, in the opposite direction, there has been renewed support of government subsidised state-owned enterprises and a scrutiny of private enterprise. Neither side is exhibiting a sufficient win-win leadership approach.