Final answer:
The US-China trade war could be mitigated by each country focusing on their comparative advantages and establishing trade negotiations that highlight the mutual benefits of trade. This approach would reduce imbalances and friction, while addressing associated concerns through comprehensive trade deals.
Step-by-step explanation:
The US-China trade war could be addressed by leveraging the concept of comparative advantage, which dictates that trade should occur between nations when they produce goods at different opportunity costs. The US, which excels in the production of high-skilled labor and technologically advanced products such as computers and aircraft, and China, adept at producing goods utilizing low-skilled labor like toys and small appliances, have clear areas of comparative advantage.
By focusing on these strengths, the two countries could resolve trade disputes through negotiations that emphasize mutual benefits of trade, ensuring each country exports goods for which they have a comparative advantage. This could reduce the economic friction between the two countries by minimizing trade imbalances, fostering cooperation over contention, and using trade deals as a platform to address associated concerns like retraining workers affected by shifts in production.