As long as variable interest entities continue to raise foreign capital to boost China’s economy, without threatening it or Beijing, there is no danger of a regulatory crackdown.
In China, the sense of community is strong, with people working collectively to fight an indiscriminate threat. But, in America, individual rights loom large. A society that is losing 3,000 lives a day to Covid-19 lacks intelligence.
The choice of the word ‘assertive’ by Western observers commenting on China is driven mostly by managing the perceptions and reaction of domestic audiences, but China is capable of so much more than that one word is able to convey.
The next step – negotiation – is unlikely to facilitate a resolution to the year-long trade spat. And when the talks do fail, none of the steps the US is mandated to take will put any meaningful pressure on Beijing.