Look what you’ve done Paul Krugman! You’ve created a full-blown international row!China is now sending an envoy to DC to cool all the protectionist rhetoric about the yuan and so forth. It seems China is trying to be conciliatory, but doesn’t seem ready to budge.
And here’s the thing, given the razor-thin margins of China’s manufacturing base, how can China do it? They can’t, unless they’re willing to accept some carnage in the very industries employing millions of Chinese.
For more perspective on what to expect, don’t miss these 10 crucial dates that will define the upcoming battle.