Friday’s court ruling would seem to strengthen China’s hand, but analysts predict that Beijing will be cautious in exploiting the advantage, knowing that Trump has other ways of levying taxes. Both sides also want to maintain a fragile trade truce and stabilize ties ahead of Trump’s highly anticipated trip to Beijing.
“It will give China a moral boost in their negotiations with Trump’s team ahead of the summit, but they are prepared for the scenario that nothing actually changes in reality,” said Sun Yun, director of the China program at the Stimson Center, a Washington-based think tank.