, Columnist
China Will Do What's Best for China: Not Shooting Markets
Xi Jinping should avoid responding to U.S. tariffs by punishing markets. China's global financial ambitions would be among the casualties.
Both sides stand to lose.
Photograph: Anthony Kwan/BloombergThis article is for subscribers only.
Many of the proposals or suggestions on how China might respond to U.S. tariffs have the air of "Surrender or I will shoot myself in the foot." They may not only hurt China, but damage the country's campaign to establish itself as a financial power and hinder the use of the yuan as a reserve currency.
It's possible China will use talk of such steps to make the Trump administration more flexible, but very unlikely Beijing can follow through.