China respects all parties resolving economic and trade differences with the United States through consultation on an equal footing, but it will firmly oppose any party striking a deal at China’s expense, its Commerce Ministry said on Monday.
China “will take countermeasures in a resolute and reciprocal manner” if any country sought such deals, a ministry spokesperson said, addressing news about the Trump administration preparing to pressure other countries to limit trade with China in exchange for tariff exemptions from the United States.
I am not so sure. Trump couldn’t even hold his moronic tariffs for more than a few days, before having to cave.
USA does not produce much besides services. China have a big surplus of production.
China also owns a huge amount of US debt. They can start dumping it which will increase the interest rate on the huge US debt. This would quickly put the US in a difficult position. Any solution besides just paying down the debt would weaken trust in the US, so they either have to take it or make everyone in the world lose faith in the current financial system with the US as it’s guardian.