Still basking in the afterglow from his summit with Kim Jong Un, President Donald Trump confirmed last week that the US would levy a 25 per cent tariff on over 1,000 products worth $50bn of Chinese exports, starting on July 6.

China immediately said it would retaliate in kind, targeting 545 categories of US products. Mr Trump’s riposte this week was to threaten a 10 per cent tariff on a further $200bn worth of China’s exports. From the foothills of a trade war with China, Mr Trump is now looking to a serious escalation that could unhinge the global economy.

American trade policy regarding China is partly about bilateral imbalances. But mostly it is about Beijing’s industrial and regulatory policies, which, the White House argues, confer unfair advantages on Chinese companies, represents forced technology transfer and penalises foreign companies. Hence the focus on China’s manufacturing and advanced technology sectors, such as robotics, aerospace, machinery and automobiles that fall under the Made in China 2025 programme. Newer artificial intelligence programmes are also targeted.