Beijing is 'playing' the trade war with Mr. Trump in its own way

As US President Donald Trump ramped up economic pressure on China over the past week, Beijing sent back a message — its rise will not be interrupted.

US-China trade war: Beijing is 'playing' Trump's game in its own way. (Source: setav.org)

So Beijing has chosen to defy rather than follow the lead of the US leader. Will this strategy make the world's second-largest economy more resilient to President Donald Trump's tariff war?

Over the past month, through a series of phone calls and attempts to “please” US President Donald Trump, Canada and Mexico have twice successfully fought back the White House’s comprehensive tariffs, at least temporarily.

Meanwhile, Chinese officials have taken a different tack. “Like a seasoned boxer in the first round of a fight, rather than pouncing, Beijing appears to be conserving its energy,” Foreign Policy said. “China is playing Trump’s game in its own way.”

The trade war is heating up

Mr. Trump's latest round of tariffs has provoked a defiant response from Beijing, with Chinese Foreign Ministry spokesman Lin Jian recently saying, "If war is what the US wants, whether it's a tariff war, a trade war or any other kind of war, Beijing will 'fight' to the end."

The White House has already imposed an additional 10% tariff on all Chinese imports since February 4, then increased it by another 10% this past week; it has also threatened more measures – as well as tighter controls on US investment in China.

This tough stance resonates with the “wolf warrior diplomacy” strategy that emerged during Donald Trump’s first term, and is considered a change in China’s diplomatic style, calculated to respond to the uncertainties from Washington.

But analysts say that behind China’s tough rhetoric are not actions that prioritize preparations for an imminent military conflict. Instead, Beijing is focusing on economic growth, emphasizing a 5% target for 2025.

Just recently, speaking at the 14th National People's Congress (NPC), Premier Li Qiang also stated, “China needs to be ready for “changes not seen in a century… taking place around the world at an ever-faster pace.”

Premier Li Qiang also announced that Beijing would mobilize 500 billion yuan to recapitalize state-owned banks, aiming to offset the impact of tariffs this year. The focus on economic growth suggests that China may prioritize stability over war, but at the same time will not shy away from trade disputes.

On the other hand, observers also believe that there are developments showing that the US is not preparing for war.

Other signals, meanwhile, point to a path for a less antagonistic US-China foreign policy, such as potential common ground on issues including Ukraine.

During the Cold War, the Soviet Union coined the term “China’s final warning” to refer to Beijing’s constant, but unenforced, diplomatic threats—implying that they had no real consequences.

A recent statement by Chinese Foreign Ministry spokesman Lin Jian could also be seen as a reiteration of these warnings. However, in recent years, China has shown its strength in another way, working to strengthen its internal strength, this year it has continued to pledge a 7.2% increase in military spending.

But while war with the US does not appear to be China’s goal, there are worrying signs about how quickly the trade war is heating up. Beijing has been playing the US tariff game for nearly eight years, meaning it is better prepared for Mr Trump’s return than Washington’s allies.

A trade war means no winners. A fight to the last man, in which both sides have been hurt badly. The fact that Chinese President Xi Jinping seems more open to stimulus suggests that Beijing is not sure it will be the one to stand firm after tit-for-tat tariffs.

For now, Beijing seems comfortable openly displaying its toughness, rather than hiding it behind nice words, observers say. Its diplomats are well aware that its economy has greater leverage over the United States than Mexico or Canada.

Beijing is also ready to respond to strong warnings with even stronger ones, as this may be the only approach to reach a deal with the Trump administration. But turning words into actions is another matter entirely.

A definitive answer from Beijing

The March 4-10 meeting of the National People’s Congress in Beijing, which will unveil plans and shape the world’s second-largest economy for the coming year, is the ideal setting for Beijing to officially deliver a clear response. So what is at the top of its priority list?

... is to boost consumer demand to ensure China's economy doesn't have to rely on exports to sustain slowing growth. And the next goal is to try to turn the country into a technology superpower, by boosting investment and attracting the private sector.

Beijing is making these moves as it prepares for what could be a protracted economic confrontation with the United States, CNN commented. Speaking to thousands of delegates at the Great Hall of the People in Beijing, the head of the Chinese government, Premier Li Qiang, affirmed that overcoming difficulties, the Chinese economy will "steadily move forward into the future."

“Confidence” is an unofficial buzzword that appears repeatedly at major political events in China. It was used nearly a dozen times in a press conference held by Chinese business tycoons, reported in the media, and cleverly inserted into the closing lines of Premier Li Qiang’s speeches that “confidence breeds strength.”

Some say that optimism may be more aspirational than realistic. Many Chinese are now looking toward an uncertain future, and are more willing to save than spend, while young people struggle to find jobs and a sense of “uncertainty” persists.

But unlike last year, China’s economy is entering 2025 buoyed by the world-changing successes of private companies and technology. And while Mr. Trump’s return has Beijing worried about economic risks, it is also growing confident about its own chances of rising.

The mood is not just in the corridors of power. On the streets of Beijing, gleaming domestic electric cars weave through traffic, including those from BYD—a rival to Elon Musk’s Tesla in global sales.

This was followed by the box office-breaking animated film “Ne Zha 2” and the breakout success of Chinese private AI company DeepSeek, whose development model shocked Silicon Valley and overturned Western assumptions about the costs associated with AI.

Wang Yiwei, director of the Institute of International Relations at Renmin University in Beijing, said that last year people may have been influenced by the narrative that China was in decline, that China had peaked. “We still have many difficulties. Of course, we still have many problems, but it is not that we have reached the peak of China,” Wang Yiwei said proudly.

On a recent weekday afternoon in downtown Beijing, several passersby interviewed by CNN pointed to the rivalry with the United States as a sign of their country's growing power.

“China is developing rapidly now and that has attracted international attention, especially from the US, but that may not be a bad thing. President Trump’s tariff hike is competition… (and) without competition, perhaps China’s independent development will not be sustainable,” said a Chinese medical student.

Source: https://baoquocte.vn/my-trung-quoc-bac-kinh-dang-choi-tro-thuong-chien-voi-ong-trump-theo-cach-cua-ho-307220.html