China analyst says Xi Jinping will have no choice but to surrender to Trump’s tariffs

"Xi Jinping is perfectly capable of taking China off the cliff. And he says he won't be bullied. He says he's not going to talk to us until we come begging...

This is not going to be a good story for China, because remember, our economy is much bigger than theirs. Even with their inflated gross domestic product reports, their economy is less than two-thirds the size of ours.

Last year, China ran an enormous merchandise trade surplus against us - $295.4 billion, which was 5.8% bigger than the merchandise trade surplus in 2023. They've got everything to lose.

Now, they can retaliate, as they've done with the rare earth export ban. But they tried that against Japan in 2010. It didn't work. China collapsed in a couple months.

They can tell Boeing: 'We're not accepting deliveries of planes,' but if President Trump prohibits Boeing from selling planes and replacement parts, there are going to be a lot of planes in China not flying.

So, we have the power. The only way China wins this trade war is if it gets Trump to preemptively surrender.

Now, Trump knows he holds the high cards, but the question is, and a lot of people say, 'Well, we're a democracy. We've got to give up.' I don't think so, because Trump actually believes in these tariffs. He knows how important it is. But that's China's only route out of this." - Gordon Chang