It’s unclear to me how solid the Chinese economic position actually is. It’s possible that their high debt load will mean that they have to fold very quickly.

It’s unclear to me how solid the Chinese economic position actually is. It’s possible that their high debt load will mean that they have to fold very quickly. On the other hand, as an authoritarian regime they can handle much more political pain. You have to hurt China badly enough for them to fear revolution before politics alone will break them. In the other direction, all China has to do is make republicans deeply unpopular before the next election. This would reinforce democratic chances, and increase the likelihood of Congress putting a stop to this whole trade war.