Where does that leave us? The road will inevitably lead back to the US and China sitting across from each other at the negotiating table. Like-minded partners such as the EU could potentially be brought into the mix, but the more viewpoints around the table, the lower the prospects for success. US and EU views are similar but not identical, and China is skillful at exploiting any such fissures.

The impending US presidential election has of course put everything on hold, but as soon as is practical, the two countries need to begin the hard work of hammering out accommodations which recognize and mitigate (at least to the extent possible) the distortions which result from China’s “united front” on business and government. As has happened so frequently in previous bilateral or plurilateral negotiations, the WTO could then subsequently absorb any ground-breaking new provisions agreed to by the US and China on a basis and at a pace of its own choosing.

The West has often been guilty of not listening to China. But China has communicated with great clarity that its definition of “private” business diverges in fundamental ways from the assumptions which underpin our existing global trade rules. It is not in anyone’s best interests to ignore or minimize this glaring and expanding fault line. Pretending that a private Chinese company is essentially the same as a private Australian, Chilean, or American company is simply delusional. If we wish the global trade system to continue to be sustainable, we need to recognize and address this reality head on. A more sustainable trade system will benefit everyone – including China.