In a commentary in the People's Daily on August 26, Long Guoqiang, Vice President of the PRC State Council’s in-house think tank, the Development Research Center, voiced what is quickly becoming the consensus view on American motivations for a trade war. He said he expects “deep structural change” in the relationship between the world’s two largest economies after the trade war, with the US treating China as a key rival and that it's all a bid to contain China, just as the US did to the Soviet Union. He said “The trade war is not just a measure for the US to gain more economic benefits, it is also an important strategy to contain China.” He advocated that China should not turn up the heat, but continue to match the US action for action and be ready to resume negotiations any time. He recommended that in the short-term, the government should offer assistance to companies hit by the tariffs and help find new markets for exporters and substitute sources for imports. In the long-term, avoid errors made by the Soviet Union – in other words, don’t abandon the domestic agenda.
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