Via Bill Blain:
Where America wins is in terms of economic muscle. The Japanese knew that before Pearl Harbour 80 years ago, the Russians learnt it in the 80’s. And now the Chinese are being treated to a similar lesson today.
The US can withstand declining energy exports to China far longer than Xi can withstand real growth tumbling from the Party’s mandated 7% to closer to 5.5% (or whatever it really is). The government are combating weakness by letting the currency fall – courting further Trump anger at perfidious currency manipulators.