China exports more to the global south than to the recession laden first world:All the US ever does is issue threats. All stick & no carrot leads to nothing but resentment over time. I think the Chinese government, even if it caves or appears to cave in this one example instance, will move to decouple further in the future. There is no long-term cooperation with entitled, self-important white supremacists.
Also, the sooner China calls Europe’s bluff, the better. The region is in a state of collapse & should not be holding Chinese politics hostage with the carrot of market access. Actually, this is the reason China needs to address demographics above all else. You cannot rely on foreign markets going forward as they have been and will be weaponized by a West increasingly fragile about its own industrial competitiveness.
Would China build its future prosperity on the basis of selling to Indians? Of course not. So why is it banking on the European & American markets? Tariffs and sanctions are the way of the future & it is likely we will return to a world more like the 18th and 19th centuries in terms of great power competition and closed markets. In such a world, demographics and resource control will become key to national wealth & power.
And this trend is set to accelerate. The europeans have a very weak hand and it is becoming more and more compromised by idiot white supremacist anglos across the Atlantic wanting to destroy european indsutry so they can monopolise all of the western industrial market.