The big questions emerging from the escalating U.S.-China trade war are about both the Chinese economy and the longer-term impact on the status of Xi Jinping.
The immediate economic impact of spiraling friction between the two powers is not large but is likely to grow over time, and accentuate other significant domestic economic challenges for China's President Xi. This could add to doubts about his leadership style and tactics -- something that would have been unthinkable a year ago when the 19th Congress of the Communist Party almost deified him.
