Wed, 30 Apr 2025

Wed, 30 Apr 2025 Xi's real test is not Trump's trade war

The real battleground of the current trade war might be China's domestic economy
Xi's strategy:
* Xi is betting that Beijing can withstand economic pain longer than Washington in the great power competition.
* He is trying to use the trade war as a catalyst for further change, including finding new markets for China. China's diversification efforts:
* Since 2001, more than 145 countries have done more trade with China than they do with the US.
* China has expanded its ties across South East Asia, Latin America, and Africa through its Belt and Road initiative. US tariffs and their impact:
* The US has imposed tariffs on Chinese imports, which has led to a surge in exports of cheap Chinese goods into regional markets.
* If these exports were to flood any regional market or country, it could lead to dumping and vicious competition, thereby triggering new trade frictions. Challenges for Xi's global outreach:
* China's past actions, such as imposing tariffs on Australian wine and barley, may impede Xi's current global outreach.
* Many countries may be unwilling to choose between Beijing and Washington. Xi's long-term strategy:
* China is playing a longer game and is focused on its own internal policies and development.
* The trade war has forced China to diversify its export market away from the US towards other markets, especially in the Global South. Overall, the article suggests that Xi Jinping is using the trade war as an opportunity to further his country's interests and goals, while also showcasing China's resilience and adaptability in the face of economic challenges.
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