Can China Withstand A Trade War?
- Trade tensions are escalating between the US and China, and Trump argues that the US can’t lose.
- The Chinese economy is vulnerable at the moment, plagued by large debts which authorities are attempting to reign in and a worsening emerging market climate.
- The US government might be tempted to think that, given this weakness, China will cave if only they increase the pressure enough.
- But this is a dangerous game, a worsening Chinese economy is in nobody’s interest. Their loss is not our gain, we have seen that from earlier Chinese economic wobbles.
Source: Can China Withstand A Trade War? | Seeking Alpha
Tags: China · Trade