The Bottom Lines U.S.-China trade policies need to be updated, and China is not in a strong position for trade negotiations. The United States has the best risk adjusted prospects in the world today. A Brief History The first trade war involving both the U.S. and China occurred from 1840-1842 and triggered the first Opium War between Britain and China. On paper China looked big and strong, but the war was practically over before it began, and Britain was ceded the prize areas of Hong Kong and ports in Canton via the Nanjing Treaty. The U.S. gained trade advantages as well; however, the amount of trade remained low for over 100 years. There was no trade between China and the U.S. from 1950 to
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