Trade war: Is Donald Trump afraid of China?
Who gives in first?
The trade war between the United States and China seems to be hitting a breaking point as experts (and markets) wait for US President Donald Trump to back down as Beijing seems to call his bluff.
Trump's U-turn
CNN reports that the US President has hinted that China’s tariffs won’t be as high as he has previously stated, in what seems to be a change of strategy.
Highs and lows
“145% is very high and it won’t be that high,” Trump said, as quoted by CNN. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
Who bids the most?
The BBC writes that, in the face of Chinese goods being subjected to up to 245% in tariffs, the Beijing government has hit back with a levy of 125% on imported US goods.
China's rare earths
Not only that, but CNN highlights that the Asian superpower also restricted the export of important and rare minerals used in everything, from iPhones to radar systems.
Figthing to the end
According to the BBC, the Chinese government, led by Xi Jinping, has repeatedly declared that it is open to dialogue, but that is also willing to “fight to the end”.
Who has the upper hand?
The BBC argues that, in a trade war between China and the United States, Beijing has a clear upper hand against Washington.
The world's second largest economy
As the world’s second largest economy with a domestic market of over a billion people, China has no problem absorbing the impact of tariffs, unlike smaller countries.
The perks of authoritarianism
The BBC also points out that, as a centralized, authoritarian regime, Beijing has little to no concern about critical opinions or upcoming elections.
