Laura Bicker, the China correspondent for Reuters, reported that in 2019, Donald Trump and Xi Jinping met to discuss the imposition of an extra 10% tariff on all Chinese goods by the United States. Despite this, China has not shown any signs of anger towards the US for this decision. Canada and Mexico, on the other hand, retaliated against the US by imposing their own tariffs. However, after separate agreements were reached with both countries, President Trump agreed to temporarily pause tariffs on goods imported from them. The tariffs on China are still scheduled to go into effect on Tuesday.
When Trump first imposed tariffs on Chinese imports in 2018, Beijing declared that it was not afraid of a trade war. This time, however, they are urging the US to engage in talks and meet halfway. Reports suggest that a call between Trump and Xi Jinping may take place soon. Despite the announcement of the additional 10% tariff, Beijing has remained relatively calm in its response.
China’s economy is now less reliant on the US than it was before. Beijing has strengthened its trade agreements with countries across Africa, South America, and Southeast Asia, becoming the largest trading partner of over 120 countries. This additional 10% tariff may not provide the leverage that Trump is seeking, according to Chong Ja Ian from Carnegie China.
Xi Jinping, as the leader of the world’s second-largest economy, has made it clear that he wants China to lead an alternative world order. With Trump’s “America First” policy potentially weakening US leadership globally, China sees an opportunity to enhance its own position on the world stage.
The uncertainty surrounding Trump’s policies has led to new alliances forming in Asia, with countries like Japan, South Korea, the Philippines, and Australia growing closer together due to their concerns about China’s assertiveness in the region. Taiwan remains a contentious issue in US-China relations, with Beijing condemning any support from Washington for the island.
As the Chinese New Year celebrations come to an end, China’s response to the tariffs has been relatively subdued compared to other countries. While officials in Beijing hope to maintain a stable relationship with the US, they also recognize the potential for significant disruptions in the bilateral relationship due to Trump’s unpredictability and hawkish approach towards China. China is navigating these challenges while also seeking to expand its influence on the global stage.