The next Foreign Exchange and International Economic report is expected to be delivered on October 15th and it’s hard to see how the US will now avoid using much harsher language with China. The possibility of sanctions is very real. The US has also dragged China in front of the WTO, as this Bloomberg article outlines.
With China’s domestic economic demand experiencing such a huge rise this year, China is probably less worried about future trade relations than it is about the value of its US financial assets.
