Trade disputes are self-stabilizing---prefer IP-specific evidence.

The VAR model in its entirety shows that, when America as the largest developed country throughout the world strengthens its intellectual property trade barrier, China—the world’s largest developing country representing the interests of another group—should enhance its intellectual property protection, persistently make progress in its intellectual property undertakings, and improve its comprehensive intellectual property strength to catch up with America in the area of intellectual property power. The model also shows that the China–U.S. trade balance may suffer relevant impacts and again achieve balance through long-term adjustments. In such an imbalance, immeasurable economic losses together with a series of unnecessary troubles and conflicts may be incurred on both China and America. One country is in a critical period of reform and opening and the other is in a leading global position.