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Excerpt:The United States and China– two of the world’s largest economies– are locked in a dangerous trade stand-off that may have no winners. As the US tries to arm-twist China — with mounting tariffs– into seeking a deal from his administration, it is becoming increasingly clear that Beijing may have more leverage than President Donald Trump and his aides think.The United States remains an almost irreplaceable market for China for its manufactured goods. However, experts caution Washington not to underestimate Beijing’s capacity to resist the Trump administration’s coercive tactics. The combination of Beijing’s centralised political control, diversified export markets and stronghold over some strategically vital materials, including rare earth metals and magnets, gives China plenty of room to negotiate with the US.
The complexity of the United States’ dependence on China was evident over the weekend when the Trump administration exempted smartphones, laptops and TVs from its new tariffs — goods that the US primarily imports from China.
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