This is John Batchel, a conversation with colleague Elizabeth Peake about the Chinese economy

and the bluster that we have from Xi Jinping himself regarding the standoff over tariffs as a joke

from his point of view. It is not a joke. China's economy is very weak, very, very weak.

And Elizabeth Peake comments on that.

And the weak economy cannot withstand the strains of the tariff confrontation is the thinking.

Is Elizabeth Peek more of this tonight?

Well, I think that's true.

And I think President Xi, if you remember, several years ago,

took upon himself managing personally the economy. So it's also his problem. It's not just the

country's problem. But you're quite right. For years, the five-year long-term plan in China

has relied on two things, boosting consumerism, which has not happened, and also attracting

foreign capital, which also has not happened. In fact, foreign investment has been flooding out of

China because of Xi's erratic management. So I think they are not in good shape. I think what

he's doing now, playing tit for tat,

refusing Boeing airplanes, cutting off rare earths,

this is not going to end well for China.

I don't believe.

I don't believe our White House is going to buckle

vis-a-vis China because we have a stronger hand.

And the sooner China realizes that, the better.