Strategic trade policy tools as weapons in the geopolitical conflict among great powers

China and the US are engaged in a tournament for supremacy. High levels of public research and subsidies are potential instruments in this contest. Using a selection of generic strategic trade policy models, we show how the tournament dimension alters the economic logic of trade policy. Traditionally, such policies are used to increase national prosperity. However, winning a tournament requires being stronger than one’s rival. While economic strength still matters, the probability of winning also rises when a rival is weakened. As a result, the pursuit of primacy can generate higher public subsidies than would emerge if great powers sought only to maximize their own prosperity. Great powers with similar capabilities may mutually offset their potential advantages while expending resources at levels that directly reduce their prosperity. The beneficiaries of these efforts may be consumers in export markets.