[moneybadger]

It's not really that baffling - China makes vast sums of money trading with the US and nuking holiday sales would hurt them just as much as it would hurt the US, if not more so. And there's no undo button on such a move, if China crossed that line once then there's zero guarantee they won't do it again in the future. So while in the short term China might get what they want, but in the long term it would drastically decrease the appeal of manufacturing in China and international businesses would look elsewhere to invest.