It’s basically this
A good rebuttal against the hopium and copium that plagues the west.
US elites (including obviously Trump and his cabinet) really, truly believed this. This is why they were so willing to go with "Chaos" during his first administration, and again during the early months of his second administration.
But we can tell from what actually happened that they got cold feet. They started the process of hard decoupling ("150% tariffs! we have the leverage! surrender to us or collapse!"), and then realized it wasn't working. Somehow, the Chinese economy didn't fold like a house of cards, as they were expecting, while the US economy - and importantly its stock market - shuddered.
So they changed their tone, but you can tell, their basic fundamental thesis remains unchanged. Bessent remains as convinced as ever that the US has the leverage, and that China will inevitably Lose. It was just, in the words of the stock trader whose short likely lost him hundreds of millions of dollars - "a trade too early."
Ignorance and arrogance, together, is always a dangerous combination.
The reality is that physical assets are far more resilient than financial assets. The power of finance derives from trust. The global stock market is worth $127
trillion because people
trust that it does. The US can print money and get other countries to subsidize it, because of
trust. Trust that the US world system and its hegemony will endure.
But contrary to physical assets, which are constant regardless of human opinion, trust is all about optics, and anything built on optics can erode quickly. If one day the world decides no longer to trust in the US world system, if one day it believes the current world order is coming to an end, the "value" of all those financial assets will evaporate just as quickly as they came. $127 trillion will disappear over night, and that is the catastrophe that make people like Trump and Bessent stay up at night. A crisis of trust.