With a fresh set of tariffs and an administration filled with China hawks, U.S. President Donald Trump appears determined to escalate his long-standing trade battle with Beijing. His economic nationalism, punctuated by a fresh round of tariffs and a renewed emphasis on American manufacturing, underscores a relentless drive to contain China’s rise. However, his latest round of tariffs on Chinese imports has triggered immediate reactions from Beijing, which has proven adept at countering Washington’s economic offensives. Unlike the first tariff war during Trump’s previous tenure, China is now operating from a position of greater strength, with a more diversified global trade network and an enhanced military posture that underscores its role as a formidable counterweight to American influence. The assumption in the Trump camp is that squeezing Beijing through economic restrictions will weaken its competitive edge. But China has learned from past trade wars, using a combination of policy innovation, supply chain diversification and technological advancement to weather the storm.

Trump’s economic strategy remains steeped in protectionist rhetoric, designed to appeal to his voter base and reinforce his vision of a self-reliant America. However, China has learned from past skirmishes and has adjusted its economic policies to mitigate the fallout of these measures. Over the past decade, Beijing has been investing heavily in technological self-sufficiency, particularly in semiconductor manufacturing, artificial intelligence (AI) and renewable energy. This strategic pivot has allowed China to reduce its dependence on American firms while strengthening its economic ties with Europe, Africa and the broader Asia-Pacific region.

One of China’s key responses to Trump’s tariff war has been its “dual circulation” strategy, a model that emphasizes domestic consumption alongside continued engagement with global markets. This approach not only insulates China’s economy from external shocks but also ensures that its industries remain........

© The Korea Times