  This paper models the US-China trade conflict and attempts to analyze the
(optimal) strategic choices. In contrast to the existing literature on the
topic, we employ the expected utility theory and examine the conflict
mathematically. In both perfect information and incomplete information games,
we show that expected net gains diminish as the utility of winning increases
because of the costs incurred during the struggle. We find that the best
response function exists for China but not for the US during the conflict. We
argue that the less the US coerces China to change its existing trade
practices, the higher the US expected net gains. China's best choice is to
maintain the status quo, and any further aggression in its policy and behavior
will aggravate the situation.
