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How Can China Retaliate?

Well, the Chinese leadership showed that it was sane and adult by not reacting immediately to the provocation of Pelosi visiting Taiwan.  Does that mean that nothing has changed?  Or does it mean that the Chinese are wise enough to choose the right way to retaliate and the right time?  Why should they let their enemy set the agenda and goad them into a possible trap?

Time is on the side of  the Chinese, because they will become stronger every year, as the USA sinks.  What do you think their best kind of retaliation is? 

They have already cancelled a big lithium battery factory that they were planning on building in the USA.  Lithium batteries might be the best pinch point for them to hurt the political (or regulator) class in the USA, because that class is almost wholly invested in the electric car.

If China sabotages the development of the electric car, it will increase its cost at the very least, and create a game of chicken between Green regulators and their timetable and diktats for phasing out the kind of cars most Americans would prefer to drive.  This will drive a wedge between the political class and the American peasants who don't like being told what to drive by the regulators.  It could drag on for years.

Perhaps semiconductors are another pinch point where the Chinese can hurt the American economy, if that is what they really want.  But it shouldn't be.  They should restrict themselves to creating supply problems that drive a wedge between the political class and the rest of the country.  It really isn't easy to think of examples that would work like that!

But if China plays it smart, they can go far toward implementing regime change in Washington DC, just as Russia is doing to Europe.