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the issue is it would also wreak serious havoc on china's economy and while xi is president for life, he doesn't want to risk mass unrest in his own country.
by asdf333 7y ago
the issue is it would also wreak serious havoc on china's economy
and while xi is president for life, he doesn't want to risk mass unrest in his own country.
- baybal2 7y agoTrade with USA is just 2% of China's GDP. Were it to take a short, controlled dip into recession to teach US a lesson, it would not be really noticed domestically. And it will be a much better alternative than to let China to slowly bleed as manufacturers leave the country just to be able to sell to US in long term.
- fspeech 7y agoTotal Chinese export is still going up. You only need 35% local content to be labeled “made in country x”. This trade war will reduce headline bilateral deficit with the US which China knows to be at an unhealthy level. There’s additional cost compared to the past but US is sharing the burden.
- dole 7y agoThe Yuan to USD exchange rate is still close to an 11-year low so China's economy is already in flux.