The Economist: China will wait until the US is mired in inflation and unemployment

China may take a wait-and-see approach in its trade standoff with the United States, relying on rising inflation, public discontent with prices and a possible jump in unemployment within America, The Economist reports, citing conversations with senior advisers, government analysts and economists in China.

According to the publication's sources, Beijing does not necessarily have to "fight to the end" - the most rational strategy may be to wait until the tariffs imposed by the Trump administration begin to have a noticeable negative impact on the economy USA. This, according to their calculations, could force Washington to return to the negotiating table on more favorable terms for China.



Some Chinese analysts, as The Economist notes, suggest accelerating the escalation of difficulties in the US by strengthening the yuan. However, this step carries risks for the Chinese economy itself: a sharp strengthening of the currency could hit industry and supply chains before the US feels the full impact of inflation.

Earlier it became known that from April 9 in the USA begin to act increased duties on a number of Chinese goods: the new rate will be 104%, which effectively doubles the cost of imports. Against the backdrop of rising costs, importing companies may be forced to either reduce the volume of purchases from Chinese manufacturers or look for new suppliers in other regions - such as India, Vietnam or Mexico.