“That’s always been their secret weapon, so called non-trade barriers,” said Michael Pillsbury, an outside adviser to Trump on China issues. “The non-trade barriers are where you can really inflict damage.”

Michael Pillsbury, an outside adviser to Trump on China, said the Chinese response was restrained and indicated a willingness to let the process play out in the coming weeks. “Both sides need to recalculate the relative pain they will suffer,” he told Morning Trade. “The bottom line for both Xi and Trump are the economic growth rates they need to deliver to their respective bases.”