Heh this was what my pops said:Are you sure? Do you remember how painful the Tiananmen sanctions were for China? China was that close in accessing state-of-the-art American helicopters, tanks, and radars. In fact, even Deng Xiaoping's grandson admitted that China needs to "know its place." Again, the international system has never been fair. It's brutal! China cannot demand others to adapt to its rise. Beijing has to adapt in order to survive and become prosperous. Just think of Imperial Japan before 1923. Japan actively supported Pax Britannia until it was powerful enough to decouple. That was the point of Deng Xiaoping's "hide your edge and nurture your strength." Ultimately, China did indirectly receive benefits from the U.S.-led hegemony in Asia between 1972 and 2017. While the U.S.-led alliance prevented China from taking Taiwan, it also castrated Japan militarily and prevented South Korea and Taiwan from going nuclear. The only major pain in the neck for Beijing was Taiwan (but this could wait), and occasionally having to pay lip service to democracy and human rights under Pax Americana. Coming back to trade. If China does agree to shrink the size of its state-owned actors while allowing more private and foreign-invested firms to have a bigger share of the market through rule of law (independent judiciary that protects small businesses from arbitrary administrative orders and well-connected SOEs) and fair competition, Beijing could really accelerate urbanization and enhance consumption. This is exactly what Xi Jinping hoped to achieve when he came to power in 2013. Keep in mind it is the private sector, not SOEs, that accounts for 70% of high-tech innovation and 80% of employment, which relates directly to social stability and legitimacy of the CCP. I am not saying SOEs are unnecessary (SOEs are indeed extremely important during wartime mobilization), but SOEs with too much administrative support and privileged access to loans (not available to private and foreign investors) hinder market competition.
Do you remember how painful the Tianamen sanctions were? This is nothing, China will get through it.