These trade conflict consequences may have been underestimated by China’s government.
There is also more and more talk of relocating international companies outside of China, which might signal a potential break of global supply chains. American and possibly European restrictions on Chinese investment in high tech will also spark retaliatory measures. So will new export controls. Even if tariff issues are somewhat settled by ongoing China-US trade negotiations, this long-term tendency to curb technology transfers of all types will certainly have an impact on the economy.