Dr. Atip Asvanundไทย
Trade Wars & Economic Statecraft

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12:44YOUTUBE

Summary

China answers hard because it holds several cards: economic scale, internal political stability, and a nationalism that can absorb the cost.

The two heaviest are control of rare earths and the very large holding of US Treasuries.

Trump still holds a political advantage that could cause Beijing to miscalculate — and leave both sides damaged.

Key points

  1. Nationalism buys pain tolerance

    A country whose public will absorb cost for longer has more leverage in a contest measured in endurance.

  2. Rare earths are a genuine bottleneck

    It is not about price. Certain production lines simply stop if the supply is cut.

  3. Treasuries are a weapon that wounds the holder

    Dumping them devalues China’s own position, which makes it a threat rather than a move.

  4. Both sides lose if neither steps back

    This is a game of nerve, and the worst outcome can arrive without anybody choosing it.