China Can’t Hit Back at U.S. Without Hurting Self as Trade War Heats Up

  • As the trade war heats up, China has limited options to use against the U.S. without negatively impacting its own bottom-line.
  • According to sources familiar with the matter, “Chinese leaders are pressing ahead to seal a deal and avoid a drawn-out trade war that risks stalling China’s long-term economic development.”
  • However, China understands there will be consequences if they bend too much to the U.S.’s will.
  • Sources said: “Agreeing to U.S. demands to end subsidies and tax breaks for state-owned firms and strategic sectors would also overturn China’s state-led economic model and weaken the Communist Party’s grip on the economy.”
  • The U.S. has continued to put pressure on China to fix unfair trade practices by levying increased tariffs on $200 billion of Chinese goods and has plans to impose additional tariffs.
  • In retaliation, China announced higher tariffs on $60 billion worth of American products.
  • America has also ramped up pressure on China by targeting some of its huge tech companies and deploying warships to the Taiwan Strait.

Reference Links

  • Reuters: No easy options for China as trade war, U.S. pressure bite READ
  • BBC: China’s Xi Jinping urges openness amid US trade war READ
  • Fox: Marc Thiessen: Trump didn’t start this trade war, China did READ

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