The trade war will provide a handy excuse to Chinese decision makers for their homemade problems. China has poured gasoline on an economy that needed urgent fixing in 2008 already. We all needed fixing but other countries are no so excessively state dominated and although there is monumental waste in every country, China has even set new standards here. China’s model is broken. And they don’t have a new one – hence, no change in policy.
As U.S.-China trade tensions are escalating, Chinese Premier Li Keqiang said Wednesday his government is able to help the domestic economy withstand challenges. “China is confronted with a host of difficulties and challenges in economic development,” Li acknowledged during an address speaking at a World Economic Forum conference in Tianjin, China.