China turns Trump tariff hike into opportunity

China turns Trump tariff hike into opportunity

In recent weeks, countries around the world have sought to benefit from US President Donald Trump's escalating measures in the trade conflict. In contrast, persecuted China another strategy.

China's response to US tariffs

Within 48 hours of Trump's announcement of market-changing tariffs, the world's second-largest economy responded immediately with its own punitive measures against US goods and companies. The message is clear: China is well prepared to weather the trade war and emerge stronger from this situation.

China's strategic communication

That message was conveyed to both domestic audiences and foreign countries through a wave of state media coverage and government statements over the weekend following Trump's massive attack on the global trading system. A comment in the government's ownPeople's Dailywas: “US tariffs will impact China, but the sky will not fall.” The commentary emphasized that China has made continued progress since the trade war began in 2017 and is only getting stronger under pressure.

US tariffs and China's countermeasures

On Wednesday, Trump gave another Tariff of 34% on all goods imported from China announced, causing tariff burdens to rise to over 54%. In response, Beijing on Friday also imposed 34% tariffs on all American imports and imposed additional measures including export controls on rare earths and trade restrictions on certain U.S. companies.

China's strategic considerations

Beijing's rhetoric, whether propaganda or not, is aimed at instilling confidence in the Chinese public and the international community. Brookings Institution researcher Ryan Hass said on Platform He referred to discussions about a possible global realignment without the United States, which Beijing appears to favor.

China as a new global player

China is increasingly positioning itself as a defender of a globalized economy that has improved prosperity in many countries. “As the second largest economy, China will continue to open its doors regardless of international changes,” the Foreign Ministry said in a statement Explanation.

Competition and economic cooperation

International business leaders and experts who spoke to Chinese state media emphasized China's rivalry and willingness to reshape the international trading order. “We are ready to accept the challenge and compete with the United States in the global trading system,” said Ju Jiandong of Tsinghua University. Still, it remains to be seen how other countries will respond to China's messages, especially given concerns about a possible flood of Chinese exports.

Prepared for challenges

Despite all the positive rhetoric, China remains prepared for possible economic impacts and further escalations. Last year, trade volume between the US and China was about half a trillion dollars. Faced with challenges posed by high local debt and economic uncertainties, the Chinese government plans to take measures to support domestic consumption.

Summary

Overseeing the challenges posed by the trade war will not be based on election tallies or voter votes, as would be the case in many other countries. Analysts predict the new tariffs will hit China's GDP by at least 0.7 percentage points and advise against accelerated economic measures. The question remains how far the trade war between the two largest economies can escalate and whether a way out can be found.

Reporting by CNN's Joyce Jiang contributed to this article.