Chinese leaders criticized for their handling of trade war with Trump

CNBC:
A growing trade war with the United States is causing rifts within China's Communist Party, with some critics saying that an overly nationalistic Chinese stance may have hardened the U.S. position, according to four sources close to the government.

President Xi Jinping still has a firm grip on power, but an unusual surge of criticism about economic policy and how the government has handled the trade war has revealed rare cracks in the ruling Communist Party.

A backlash is being felt at the highest levels of the government, possibly hitting a close aide to Xi, his ideology chief and strategist Wang Huning, according to two sources familiar with discussions in leadership circles.

A prominent and influential academic whose views have found favor in some party quarters has also come under attack for his strident views on Chinese power.

Wang, who was the architect of the "China Dream", Xi's vision for China to become a strong and prosperous nation, has been taken to task by the Chinese leader for crafting an excessively nationalistic image for the country, which has only provoked the United States, the sources said.

"He's in trouble for mishandling the propaganda and hyping up China too much," said one of the sources, who has ties to China's leadership and propaganda system.
...
There is a growing feeling within the Chinese government that the outlook for China has "become grim", according to a government policy advisor, following the deterioration in relations between China and the United States over trade. The advisor requested anonymity.

Those feelings are also shared by other influential voices.

"Many economists and intellectuals are upset about China's trade war policies," an academic at a Chinese policy think tank told Reuters, speaking on condition of anonymity due to the sensitivity of the issue. "The overarching view is that China's current stance has been too hard-line and the leadership has clearly misjudged the situation."
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The cracks within the party come as China's stock markets and currency have slumped, and the government has struggled to shore up the economy to cushion the impact of the trade war.
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There is more.

China's thinking on Trump has gone from thinking he is crazy to thinking he is a genius.  They underestimated Trump's gaming of the trade war and his understanding that the huge trade deficit the US had would be a strength in any trade war because China would be the party with the most to lose.  China needs to retreat and cut a deal that will be seen as fair to both sides.  Its onesided policies are the main problem and it needs to get to the point of realizing its economy is strong enough to compete on a fair basis.

I think China also miscalculated Trump's ability to fashion fair trade deals with the US, Japan, and South Korea.  That leaves China s the one isolated.

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