China is trying to find a way out of the irrational Trump policies, as the G20 convenes in Japan. Key is that China cannot afford to lose support from the international business community and the global economy, says economist Arthur Kroeber to the New York Times.
The New York Times:
In response, China’s Ministry of Commerce has threatened to make a list of “unreliable” companies and people who could be punished for disrupting Chinese supply chains. Chinese officials have echoed the threat in meetings with American tech companies. Beijing has also proposed new cybersecurity regulations that experts say could impair the operations of foreign companies in China.
Still, Arthur Kroeber, a founding partner at the research firm Gavekal, said China would hurt itself as much as it hurt the United States if it took more steps to disconnect itself from the global economy.
“China’s only hope of influencing U.S. policy in a more positive (from its standpoint) direction is to keep the business community as some kind of an ally,” Mr. Kroeber wrote in an email. “This limits its ability to target U.S. firms for retaliation.”
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