Gordon Chang on China's Response to Trump's Negotiation Tactics

China's Political Calculus in Negotiations

• 🇨🇳 Xi Jinping has structured the Chinese political system to favor only the most hostile responses, making a deal potentially appear as weakness.
• ⚠️ Acknowledging that China might not act in its economically rational self-interest is crucial for understanding their behavior.
• ⚡ The current trade friction could paradoxically support Xi's political standing within the Communist Party, making him less inclined to concede.

Potential Outcomes of Negotiation Standoff

• 📉 It is entirely conceivable that Xi Jinping could choose not to make a deal, even if it means taking the Chinese economy towards a cliff.
• 🚩 If Xi perceives making a deal as a sign of weakness, he may fear challenges from other Communist Party figures.
• 🤝 The expectation that China will engage in rational economic behavior may be flawed, as political considerations appear to be paramount for Xi.