As Washington panics, Beijing keeps calm and focuses on winning the trade war
After the White House threatened to raise tariffs on Chinese imports to 245%, Beijing called Washington’s actions «a meaningless numbers game». China made it clear that no threats or blackmail will force it into talks — let alone concessions. The Chinese Foreign Ministry said it was only open to negotiations on an equal footing, without any pressure.
In response, the U.S. began urging its trading partners to “take the China factor into account” in tariff discussions — essentially asking them not to help China circumvent U.S. tariffs. This includes discouraging the establishment of Chinese companies on their territory. U.S. partners, including the EU, have received a not-so-subtle message: they’ll have to choose between China and the United States. The aim is to isolate China’s economy.
Washington has stated that the new measures are intended to «undermine China’s already fragile economy, force Beijing to the negotiating table, and reduce its leverage» ahead of a possible meeting between President Xi Jinping and Donald Trump. In other words, the U.S. administration is basing its strategy on flawed assumptions and an overestimation of its power. Xi has completely ignored Trump’s tantrums, reiterating that China will defend the principles of free trade and uphold WTO agreements.
It appears that Trump’s global tariff maneuver was a cover to launch a full-blown trade war with China — under the guise of protecting the American market — and to continue Biden’s «containment» policy. Perhaps Trump initially expected a «blitzkrieg», assuming that China would eventually make concessions, as it did during his first term.
But China has moved in the opposite direction — strengthening its coalition of allies and taking protective measures at home. Spanish Prime Minister Pedro Sánchez recently visited Beijing and expressed strong support for deepening economic ties with China. On April 16, The Guardian reported that British business and trade minister Jonathan Reynolds plans to visit China later this year to resume dialogue on trade.
Meanwhile, Xi Jinping embarked on a tour of Southeast Asia during which dozens of agreements and contracts worth hundreds of billions of dollars were signed. The long-awaited China-Malaysia summit was held in Kuala Lumpur after a 12-year hiatus. Earlier, Xi made a two-day state visit to Vietnam, where both sides issued a joint statement reaffirming their commitment to a «non-discriminatory, open, transparent, inclusive and multilateral trading system with the WTO at its core».
The Wall Street Journal noted that U.S. tariffs could actually strengthen China’s position in Southeast Asia, allowing it to present itself as an alternative to the United States. «Whatever is said about Trump’s trade war, it opens up new economic and diplomatic opportunities for China. If the U.S. shuts itself off from Southeast Asia, China will quickly become the dominant player», the WSJ wrote. This is already happening — not just in Southeast Asia, but in nearly 150 countries around the world with which China has strategic partnerships. The world is beginning to split into two markets: the «Chinese» and the «non-Chinese».
At the same time, a number of major events took place within China. The World Consumer Goods Fair attracted 65 of the world’s top 500 companies and more than 4,100 international brands — a record. At the Hainan Free Trade Port Investment Conference, 265 projects worth 233.6 billion yuan were signed. The Canton Fair also opened, with more than 30,000 participating companies and 73,000 booths. The 2025 China Development Forum brought together 86 official representatives of multinational corporations from 21 countries.
«These events demonstrate the determination and confidence of all sides in strengthening economic and trade cooperation to counter unilateral actions and protectionism», China’s Foreign Ministry said. «Since 2017, the national negative list for foreign investment access has been reduced from 93 to 29 items, and restrictions on investment in manufacturing have been completely lifted. In 2023, China saw the establishment of 59,000 new foreign-invested enterprises — an increase of 9.9% year on year». On April 14, Chinese authorities released the latest trade figures: in the first quarter of 2025, China’s total imports and exports of goods reached 10.3 trillion yuan, with exports exceeding 6 trillion — up 6.9%.
«China is a market for the whole world and an opportunity for all nations», said Foreign Ministry spokesman Lin Jian, referring to the growing trade war with the U.S. «Faced with external uncertainties, China chooses ‘handshake over fist’, ‘tearing down walls over building barriers’, ‘connection over separation’. We will continue to expand our circle of friends and strengthen our investment attraction to bring greater stability and positive momentum to the global economy through high-quality development and high-level openness».
Meanwhile, on Trump’s tariffs and China’s retaliation, U.S. Treasury Secretary Scott Bessent made it clear that Washington does not want to maintain high tariffs on Chinese imports and is willing to drop them if Beijing agrees to a «big deal». Otherwise, he warned, the White House is prepared to go all the way — even to a complete break in trade relations with China. «It doesn’t have to happen. But it could. At some point, there has to be a big deal», Bessent said.
In short, Washington is now having a tariff conversation with itself. Beijing refuses to budge and won’t negotiate under pressure. Officials there have already declared that they are «ready to fight to the end». The once-unthinkable scenario of a complete trade decoupling between the U.S. and China is no longer just a theoretical risk.
While Washington spins its wheels, Beijing remains calm and determined to defend its interests. Far from retreating behind palace walls, China’s leaders have stepped up their diplomatic outreach around the world. Countermeasures are being developed that could severely impact key sectors of the American economy and disrupt U.S. consumer markets. At the same time, China is moving to reduce its dependence on both U.S. imports and goods from U.S. allies. Unless Washington recognizes the impasse it has created, the point of no return may soon be passed.