The Economist: Why China thinks it could win a trade war with America

The trade war between the US and China is escalating rapidly, with both sides imposing significant tariffs on each other’s goods. President Trump has threatened to end negotiations if China implements a 34% tariff, while Chinese officials are prepared to “fight to the end.” The potential for decoupling between the world’s two largest economies is increasing, with China considering various retaliatory measures, including suspending co-operation on fentanyl and banning imports of American agricultural products.

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