China has come to a turning point in a trade war with America. Therefore, it is difficult to proceed with any strategy without harming itself. The United States has kept strong pressure to fix trade imbalance on China. This led to a big challenge in front of US state-run economy. China has said this week it will increase the tariff on imports up to $60 billion from the US. Although it is less than the $200 billion dollar imports imposed by the United States on the increase of the tariff.
Sources close to the whole issue of China say that because of the trade war from the United States, its long-term economic growth could be a hindrance. In such a situation, China could try to deal with America, trying to eliminate the trade war situation. However, Beijing has a risk to the fact that if he tries to compromise with the United States. The people of nationalistic thought may have to face opposition.
— valerie block (@ValerieBlock) May 10, 2019
America is demanding that China eliminate subsidies and tax exemptions for government companies. If China agrees to do so, then it will be a strategic defeat in a way. Apart from this, the Communist Party’s grip on China’s economy will also be weakened.
A person related to China’s policymaking, on condition of anonymity, said, “We also have many weapons, but we can not use them all.”
Our aim is to make deals with the US, which are acceptable to both. However, the State Information Office, the Finance Ministry, and the Commerce Ministry have refused to comment. Although China has a risk to it in any move to take action against the United States in exchange for a replacement.