It was highly unlikely that Beijing would back down, because it believes it is being bullied by the US.
If, on a bright, cloudless day, Donald Trump told you the sun was shining, it would be prudent to go outside and have a look for yourself… because facts and the US president have a barely nodding acquaintance.
This week, though, observers around the world believe the US president may have been less than economical with the truth in claiming that Chinese President Xi Jinping had telephoned the White House to discuss the blooming trade war between the two countries.
No such thing happened, said the Chinese and diplomatic observers.
It was highly unlikely that Beijing would back down, because it believes it is being bullied by the US.
What Trump’s claim may indicate, though, is that he is about to roll back yet again on his initial furious tariff barrages… as it becomes apparent the damage it will inflict on the US and global economy.
The decline in stock markets is evidence that investors don’t believe Trump’s pie-in-the-sky nonsense about how tariffs are going to make America great again.
Therefore, if Trump’s ego doesn’t get in the way and he’s prepared to realise he overstepped the commonsense mark by a long way, then perhaps everybody will start talking trade peace, not war.
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