With the onset of Trump’s trade war, diplomatic relations between the United States and China—the world’s largest and second-largest economies—have reached a crisis point. Yasheng Huang, a political economist, MIT professor, and the author of Capitalism with Chinese Characteristics, argues that “a trade war would negatively affect the interest of US consumers, companies, and the financial system of the United States.”

Speaking at the 2018 Aspen Ideas Festival, Huang goes on to explain how the newly-imposed tariffs on Chinese goods will raise domestic prices. He also reveals how the US and China can coexist “peacefully and profitably”—and why the onus is on America to bring that to fruition.