China’s Cautious Strategy Against Trump’s Tariff Tactics
China’s strategy in response to Trump’s tariffs contrasts sharply with that of Canada and Mexico, opting for a reserved approach over flattery. This method has not shielded China from the escalating tariffs imposed by the U.S., nor has it hindered Beijing’s preparations for extended economic conflict. Experts suggest that maintaining domestic perception is critical for President Xi Jinping, shaping China’s strategy amidst the ongoing trade war.
In contrast to Canada and Mexico, which have successfully utilized diplomacy to temporarily thwart President Donald Trump’s tariffs, China has adopted a more restrained approach. By not engaging in excessive flattery or rushing into conflict, Chinese officials seem to conserve their resources. However, their strategy has not enabled them to escape the newly imposed tariffs, which have escalated to an average of 33 percent on Chinese imports, significantly increasing from around 3 percent in 2017.
Despite the economic implications of the tariffs, Chinese leadership appears unyielded to readily combat them. Experts suggest that the unpredictable nature of Trump’s presidency conflicts with Beijing’s preference for measured diplomacy, leading to hesitance in direct confrontation. President Xi Jinping’s reputation is critical domestically, and he must avoid the appearance of weakness by overly accommodating Trump’s demands.
Chinese officials recognize the permanence of Trump’s trade war orientation. The administration has framed tariffs on China as essential in addressing issues such as the illicit fentanyl trade. However, Chinese representatives assert that their efforts to combat drug trafficking have been cooperative, categorizing U.S. claims as excuses for tariffs.
Economic expert Wendy Cutler posits that had China engaged more diplomatically, a suspension of tariffs may have been achievable. Nonetheless, with Trump’s ongoing threats against Canada, the landscape of trade engagement appears precarious and uncertain.
As preparations for a prolonged trade struggle unfold, China has signaled potential retaliatory measures, including tariffs on U.S. agricultural goods and investigations into American companies such as Google. Additionally, Chinese authorities have adopted a firmer stance, with a Foreign Ministry spokesperson issuing a warning that they are ready for any type of conflict.
Foreign Minister Wang Yi acknowledged that tariffs could incur mutual harm but emphasized China’s intent to respond appropriately to unreasonable pressure. Despite tensions, there remains a potential for reconciliation, with Trump claiming he maintains a good rapport with Xi and hinting at a future meeting.
While flattery may still emerge as a tactic, China’s current strategy does not involve haste, highlighting their deliberate approach amidst escalating trade hostilities.
In summary, China’s unique response to Trump’s tariffs emphasizes a cautious strategy rather than immediate submission to diplomacy. By avoiding superficial tactics with the U.S. administration, Beijing aims to maintain strength and forestall potential embarrassment. As trade tensions persist, China prepares for long-term economic challenges while remaining open to eventual negotiations, albeit cautiously.
Original Source: foreignpolicy.com
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