China is the Ultimate Crony Capitalist State and as such its economic underpinnings are more fragile than they appear to most.
“The gap between US’s demand list and China’s offer list is very large, and the back-and-forth of the negotiations in recent months suggests that neither side would make major concessions,” said Haibin Zhu, China equity strategist at J.P. Morgan. “Given the huge gap between the two sides, the outlook remains extremely unclear. Negotiations, even if resumed, will likely involve a bumpy and lengthy process.”
“Bumpy” is right.