China might be winning the current "economy battle" as a result of Covid, there's no chance they'll win a trade war with the US, and they know it. The technology in question is American, but China is not the only country where American companies can manufacture stuff affordably. Any retaliatory measures the Chinese can take will only cause more damage to their economy in the long run.
Would have to agree with this. China relies on US consumers a lot more then US consumers rely on China. In a worst case scenario, where a large majority of manufacturing moved out of china, a large amount of other south east asian countries would be able to pick up the brunt of it -- maybe not instantly, but within a year or two. In the mean time, American manufacturing would have to step up.
Would stuff be more expensive for sometime, and then normalize? Yes.
Would this hurt the US economy? Yes. Consumers paying more for goods and companies not being as profitable is going to hurt.
Will this hurt China more in the long run? Totally. They'd be losing an integral market and US companies / US national security wouldn't want to risk having too much US enterprise in China again. They'd probably incentivize manufacturing being done at home or in allied nations for this very purpose -- to ensure that a shock like this doesn't happen.
China knows all of this though, and they're not going to fuck around.
