The trade war – the Chinese response

CHINA ADVISORY - Report 07 Jun 2019 by Andrew Collier

We analyze the response of China to the trade war in four buckets: politics, macro-economy, global supply chains, and technology. Of the four, China’s technological development and global supply chains are likely to suffer the most.

Xi’s political power is weakened

The political realm is the most interesting aspect of the impact of the trade war on China. Because Xi has established his central role in the country’s leadership, he thus will take full responsibility for the success or failure of the trade negotiations. His own policies have hindered his success.

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