New Delhi, Oct. 22 -- With trade tensions between the US and China flaring up again, the spotlight is on how their game of mutually assured disruption plays out. As China had pre-existent problems, it may seem more vulnerable.

In the three months till the end of September, China's economy grew just 4.8%, its weakest pace in a year. It could have been worse had a temporary trade truce not been struck earlier this year; Chinese exports to the US are down but not out. But with Beijing's rare-earth clampdown having provoked a fresh US threat of an additional 100% tariff, relations have soured again.

Both sides are probably looking for a new bargain. While China is still haunted by its property sector slump and weak local demand, it may have...