Dǎn

It looks like China is showing a bit of dǎn. (Dǎn, is a Chinese slang term for courage or nerve.  This is similar to saying cajones or brass balls.)

I read an article this morning that said China has ordered firms to ignore US Iran sanctions.  I'm still a bit fuzzy on the details, but to my understanding, when we sanction a country, we basically prohibit anyone from doing business with that country.  To add pressure, we also stop doing business with entities that don't follow our lead.  Basically, we've said "We're no longer doing business with Iran, and if you continue doing business with Iran, we'll quit doing business with you too."  In response, China's Commerce Ministry said "Ignore that!" 

This amuses me to no end, and slightly impresses me.  China's leaders are not stupid.  They have historically demonstrated a deep understanding of global politics, knowing when they need to play the game, when they can say one thing and do another, and when they're in a position to outright refuse to do something.  China is taking a calculated step, based on observation of Trump's behavior, and based on seeing how other countries are reacting to our attack on Iran.  Chinese leadership sees that Trump's decision to attack Iran is unpopular both in the US, and abroad. China's President Xi Jinping realizes that Americans are already frustrated with persistent inflation, and the sudden spike in gas prices has only increased our annoyance.

Xi is speculating that Trump will not retaliate against China for a several reasons: 1) The public is not ready to accept yet another spike in prices, which would absolutely occur if Trump were to sanction China.  2) China likely believes that even if the US were to sanction China, the rest of the world would ignore that sanction.  China is too big of a global player.  3) China has seen how our international relations have left us more isolated and less respected globally, and they have leveraged the opportunity to increase their prestige and influence on the world stage.  4) Ummm... TACO.

China is demonstrating some serious chess mojo against a player who struggles at tiddlywinks.  I suspect that Trump will threaten retaliatory tariffs against China.  He may even implement them, but will back down quickly and somehow manage to claim a win.