Wariness of a trade war between the United States and China has been rattling investors worldwide. While proponents of free trade will continue to insist that there can be no winner in an all-out trade war, they also are well aware that the current playing field is hardly even.

The Trump administration's insistence on reciprocity in trade enjoys support from free traders and protectionists alike. The problem, though, lies in the U.S. side placing far too much emphasis on reducing the trade deficit and not enough on investing in future U.S. competitiveness.

Instead of putting up trade barriers to protect select U.S. industries, the U.S. government should learn from Asia's recent past by investing strategically in key sectors that will strengthen the nation's economic foundation.