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China is applying a playbook with defensive and offensive strategies to win President Trump’s trade war

59 0
22.07.2025

Since the trade conflict began in 2018, China has developed a sophisticated strategy to counter US tariffs and sanctions under the leadership of President Xi Jinping. Now, during US President Donald Trump’s second term, Beijing has doubled down on these strategies, positioning itself to emerge stronger and more self-reliant.

Despite President Trump’s claims of securing trade “wins” for America, China views the situation differently. From its perspective, the trade war has bolstered its resilience, strengthened its technological capabilities, and reinforced its long-term economic strategy.

China’s strategy in the trade war consists of two main components:

1. Defensive measures:

– Diversifying trade flows: China has rerouted exports to other markets to reduce dependency on the US,

– Reducing dollar dependence: Efforts to hedge against the dollar-dominated financial system have accelerated,

– Investing in domestic innovation: China has prioritized indigenous technologies, especially in sectors like artificial intelligence and green energy,

– Boosting domestic consumption: While still a work in progress, this shift aims to support strategic industries rather than entirely replace export-driven growth.

2. Offensive tactics:

– Export controls: China has strategically restricted the export of critical materials like rare-earth minerals, which are essential to U. industries,

– Rapid retaliation: Beijing has responded swiftly to US tariffs, maintaining a firm stance in negotiations and refusing to concede to........

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