Chinese President Xi Jinping is getting tougher with Washington instead of backing down, facing another U.S. tariff hike. Beijing at Washington fired what economists called a "warning shot" by letting its Yuan currency weaken in response to President Donald Trump's latest threat of more punitive import duties on Sept 1.
The multibillion-dollar purchase of U.S. soybeans has been canceled by Chinese buyers. Regulators are threatening to place American companies on an "unreliable entities" list that might face curbs on their operations.
Both sides is battering exporters on either side of the Pacific and threatening to tip the global economy into recession and have incentives to settle a trade war.
But China’s Xi government is lashing out and might be, in a revival of traditional Chinese strategy, settling in for prolonged wrangling in response to what it deems American bullying and attempts to handicap China's economic development.