It has become increasingly clear that Trump and his administration are having some serious miscalculations. Let me explain.
Today news broke that Trump said openly that he is willing to include Huawei in a potential trade deal with China, despite claiming that Huawei is somehow "dangerous" both in a civilian and military sense. There are also reports that somehow China is waiting this administration out so that they can have a friendlier government to deal with.
These reports to me suggest that Trump et al still want a deal, a "winning" deal of course. They might have expected that once they pushed the nuclear button of blacklisting Huawei, the Chinese side would immediately have to surrender and beg for a deal. But it did not happen. So the US first gave a 90 day delay, which Huawei founder said is not necessary, and then Trump came out to say Huawei can be included in a deal. It's almost as if the US is saying "why didn't you come forward to beg for a deal so that I can claim victory? If you come I can pardon you."
But none of these happened. Not only that the Chinese side did not seem to back down. There is also no mentioning of "waiting Trump out" in China.
The Chinese government now believe that this is not just about trade or any potential trade deal, maybe that's what Trump wants so that his can get re-elected, but there are people in his administration that want to take advantage of this opportunity to basically kill off Chinese tech industry.
The mentality is different for the Chinese now. At the start of the trade war, the Chinese were being too naive to think that some purchases would satiate Trump and they soon discovered this is a wrongly held belief. Now that it seems the Chinese side is embracing for a full fallout but it's Trump side that's being a little naive about this.