Economist Mohamed El-Erian predicts President Donald Trump stands a chance of creating a new economic world order in his China trade fight.

“I think we should not underestimate something ‘Reaganesque,’” the chief economic adviser of Allianz told CNBC. President Ronald Reagan was able to change the global geopolitical landscape after winning the Cold War against Russia.

“We win a relative trade war. In absolute terms we suffer. But we win relative to others,” says El-Erian.

“I think the markets have understood that the U.S. is in a better place than the rest of the world.”

For its part, China accused the United States on Monday of harboring “extravagant expectations” for a trade deal, underlining the gulf between the two sides as U.S. action against China’s technology giant Huawei began hitting the global tech sector.

Adding to tensions, the U.S. military said one of its warships sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, the latest in a series of “freedom of navigation operations” to anger Beijing, Reuters explained.

Alphabet Inc’s Google has also suspended business with China’s Huawei Technologies Co Ltd that requires the transfer of hardware, software and technical services, except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday.

The decision was a blow to the company the U.S. government has sought to blacklist around the world.

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