[baybal2]

Trade with USA is just 2% of China's GDP.

Were it to take a short, controlled dip into recession to teach US a lesson, it would not be really noticed domestically.

And it will be a much better alternative than to let China to slowly bleed as manufacturers leave the country just to be able to sell to US in long term.

[fspeech]

Total Chinese export is still going up. You only need 35% local content to be labeled “made in country x”. This trade war will reduce headline bilateral deficit with the US which China knows to be at an unhealthy level. There’s additional cost compared to the past but US is sharing the burden.