China believes that the U.S.’s longtime One China policy is evolving into a One China, One Taiwan policy. That’s not an accurate reading of the American view on Taiwan, argues Kevin Rudd, but it explains why China is now signaling more clearly than ever its willingness to attack. I have long argued that the geopolitical disaster of a war between the U.S. and China need not be inevitable. That remains my view, Rudd writes—if both sides adopt some basic strategic guardrails. But for the foreseeable future, it’s time for all of us to fasten our seat belts.

In his new book, The Avoidable War?, former Australian Prime Minister Kevin Rudd demystifies the actions of the U.S. and China, explaining and translating them for the benefit of the other. Geopolitical disaster is still avoidable, but only if these two giants can find a way to coexist without betraying their core interests through what Rudd calls “managed strategic competition.” Should they fail, down that path lies the possibility of a war that could rewrite the future of both countries, and the world.

Given China's failure to follow through on the marketization policies that it announced seven years ago, it is reasonable to be suspicious of the government's latest reform push. Much will depend on what Chinese leaders fear more: disruptive change, or a creeping malaise of their own making.

Australia has become the complacent country. Complacent about its future economic competitiveness. Complacent about climate change. Complacent about how to navigate our future in the region given China’s rise, America’s response and a neighbourhood increasingly torn between the two. Complacent too about the gradual erosion of our democracy itself through a growing “pay for play” culture from financial donations to political parties, an increasing assault on the independence of the public service and the abuse of monopolistic media power.

Making sense of the U.S.-China trade war is difficult in itself. Making sense of how it may provoke a wider economic "decoupling," and impact the long-term strategic relationship between Beijing and Washington, is more difficult again.

While there may yet be a solution to the trade war, Kevin Rudd declares, the technology war between China and the United States has barely begun.

The uncomfortable truth is that the United States and China countries face a deepeningdivergence of values and interests. The economic and military gap between them is narrowing, and both recognize that their mastery of high technologies of the future (of which artificial intelligence is but one) will ultimately determine their future claims to dominant superpower status. Given these realities, it is difficult to imagine a new bilateral relationship that will be based on policy principles substantive enough to prevent the two countries from gradually sliding in the direction of crisis, conflict or even war.