The Wall Street Journal (gated) says Trump's proposed 60% tariff on imports from China would cause much steeper economic damage to China because the tariffs would be higher and China’s economy is much more vulnerable.
The Journal makes the point that China's export surge is a bright spot for an otherwise struggling economy.
(ps. I posted on this earlier, and its dangers:
)
But, other sectors are in dire straits:
- epic property crunch is now in its third year
- burned by the property meltdown and lingering trauma of the pandemic, Chinese consumers are keeping a tight grip on their wallets
- local government finances are under severe strain
- private-sector confidence is in the doldrums
And that:
- reliance on manufacturing and exports leaves China much more sensitive to an escalation in the U.S.-China trade war.
