Amid crises, frayed U.S. ties give China's Xi political cover at home

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Amid crises, frayed U.S. ties give China's Xi political cover at home
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To the outside world, China's ruling Communist Party - faced with an expand...

BEIJING - To the outside world, China’s ruling Communist Party - faced with an expanding trade war crimping an already slowing economy and spiraling protests in Hong Kong - is confronting some of its strongest political and economic headwinds in decades.

This time last year, as Xi and other top officials held secretive talks at the seaside resort of Beidaihe, there was an unusual surge of criticism in official circles about economic policy and how the government had handled the trade war with the United States, sources told Reuters at the time. The source, who closely follows U.S.-China trade talks, said Trump’s threat in early August to impose 10% duties on Sept. 1 on another $300 billion of Chinese imports was evidence to many in China that he was not sincere in wanting a deal.

One American executive in China said he thought the manner in which Trump has handled the 10% tariffs would backfire and give Xi a boost. In mainland China, amid tight internet censorship, there is little apparent popular solidarity for the Hong Kong protesters, whom increasingly vociferous state media have condemned as “violent radicals”.

Nonetheless, years spent consolidating his power among China’s ruling elite - including the removal of terms limits to his presidency and a sweeping corruption crackdown - means analysts do not see such crises imperiling his leadership. A Chinese government official, speaking on condition of anonymity, said Chinese leaders were “nervous” about the situation, adding “controls are very tight”.

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