Chinese Retaliation and Economic Vulnerabilities

China faces substantial limitations when considering retaliation against U.S. and European tariffs due to its reliance on imports for raw materials and foreign markets for sales. While attempting to respond by restricting exports of specific commodities like pork, the effectiveness of such measures is questionable since they do not target critical industrial sectors where China lacks leverage, such as semiconductors. The country's demographic challenges further exacerbate its economic vulnerabilities, as a declining younger population weakens domestic consumption capabilities. These factors combine to position China in a precarious situation where aggressive trade actions could backfire and diminish its trading power globally.