Part 7/12:
Analysts warn that if the US responds heavily to China's new export constraints, escalation could accelerate, leading to a more painful and widespread economic conflict. Experts fear that these measures signal a shift from conventional tariffs and blacklists to a fundamental battle over the production capabilities of future technologies, risking spillovers beyond mere economic disputes.
China’s Domestic Economy: Tourism and Consumer Spending
Meanwhile, China's domestic economic landscape presents a contrasting picture of activity without adequate spending. The Golden Week holiday—coinciding with both National Day and Mid-Autumn Festival—broke records for travel but exposed underlying economic fragility.