China is not showing much anger despite the United States imposing an extra 10% tariff on all Chinese goods. While both Canada and Mexico announced retaliatory tariffs and vowed not to back down, China has kept its response calm. Back in 2018, when the U.S. first imposed tariffs on Chinese imports, Beijing was very outspoken, saying it was not afraid of a trade war. This time, however, China is urging the U.S. to talk and meet halfway, with reports suggesting a potential phone call between Presidents Trump and Xi Jinping.
China’s restrained response could be due to several factors. First, the country’s economy is not as reliant on the U.S. as it used to be. Over the years, China has strengthened trade agreements with countries across Africa, South America, and Southeast Asia, making it the largest trading partner for over 120 countries. Second, China’s leadership does not want to alarm its citizens, who are already concerned about the country’s sluggish economy.
Moreover, Chinese officials may see an opportunity. Trump’s “America First” policy is causing division among U.S. allies, which may work in China’s favor. By remaining calm, China could appear as a more stable and attractive global trade partner compared to the unpredictable U.S. Additionally, China has stepped in to fill gaps left by the U.S. in global institutions like the World Health Organization (WHO), offering funding and leadership.
Despite the challenges, China is likely to endure the 10% tariff without making drastic moves. While it doesn’t want to pick a fight with the U.S. without significant gain, it may also see this situation as a chance to position itself as a leader in global governance, especially as the U.S. retreats from international collaborations.
China’s neighboring countries, such as Japan, South Korea, and the Philippines, are becoming increasingly cautious of both China’s growing power and the unpredictability of the U.S. These nations are exploring new alliances, possibly forming a trilateral relationship, while remaining wary of China’s actions in the South China Sea and Taiwan.
In the coming months, China will likely continue to balance between protecting its economy and leveraging the political situation to enhance its global influence, even if tensions with the U.S. rise further.