Grant Newsham
What will China and in particular the Chinese Communist Party do now that President Donald Trump has slapped 145% tariffs on them? Most of the commentariat seems to think they’ll match the United States tit for tat on tariffs, complain mightily and then quietly put out feelers to cut a deal. And Trump has suggested they already are doing that.
Maybe so. That’s what we would do if we were Xi Jinping. But don’t expect Xi to respond the way America would.
Xi Jinping will let his own people absorb any amount of hardship. And he’s been telling them for years to get ready to “eat bitterness.” He’s also been sanctions-proofing the Chinese economy for years. While he’s not there yet, he’s not helpless, either.
Economic retaliation and narrative warfare
China has banned certain rare earth mineral exports, ordered Chinese companies not to buy Boeing aircraft, and placed 125% tariffs on American imports.
It has also enlisted US proxies, of whom there’s no shortage, to make the case that the American republic will collapse if Walmart’s everyday low prices go up.
Beijing will also use the American trade pressure to rally the public.
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