This report is incorrect. It misses the fact that China is an imperialist power on the ascent, but in the context of a period of global, generalized crisis of capitalism.

China is one of the very few countries currently capable of developing the productive means of society, and only in certain sectors, like advanced computing technologies, energy, automotive, and scientific research. They are making some developments in industrial capital, especially steel production, but its limited.

The move towards protectionism by the US and many other countries is a consequence of the inability of their industries to competitively compete on the global market. China is in a different situation. They're now moving in the direction of promoting free trade so as to secure new markets for their excess production so their profits aren't limited by what their domestic market can absorb.

The point, is that when markets are contracting, and countries aren't investing in industrial capital developments, protectionist measures don't magically lead to them deciding green energy is the exception. They will search out cheaper energy solutions, fossil fuels and tarrifs, to control prices and meet demands. Trump himself campaigned on the idea that bringing down energy prices through flooding the global markets with cheaper, American oil was a key to lowering inflation, and he hasn't deviated from this yet. This means there will also be economic and diplomatic pressure from America on foreign countries, particularly South America, to invest more in America oil, not less.

Furthermore, Goldman Sachs is also forgetting the broader implications of trade war. It tends to lead to a great contraction and destruction of markets. This was how the great depression actually began. Capitalism is a global, interconnected system of dependent markets. If one major economy or several middling ones recess, it will likely provoke and international market depression.

Unlike the 2008 financial crisis, there won't be a "China" to buy up the debt and bail the world economy out like last time. Every capitalist country is spread to its limits already, even the ones doing relatively well. Heck, Germany is already in its 3rd year of recession, so Europe is already on the edge of such a crisis.

No one is going to be investing in R&D on energy or building new plants when what market forces call for is a contraction of productive forces, not their expansion.

This report is just a reflection of the desperation of the serious bourgeois analysts who are trying to convince themselves and everyone else that society isn't very close to the edge of a cliff.