By
Widdy Kurniawan
Africa-Press – Eritrea. The escalating trade tension between the US and China became a critical feature of global economic relations in the 21st century. In particular, former President Donald Trump’s introduction of tariffs on Chinese goods was a critical shift in US trade policy, which emphasized protectionism regarding globalization. China responded with the same resolve as it took retaliatory measures and strengthened its strategic economic policy. This persistent patient situation not only hampered global supply chains but also raised questions about the future of multilateral trade cooperation and economic diplomacy. As the two biggest economies continue their strategic rivalry, the trade wars develop beyond tariffs and include technical restrictions, investment testing, and geopolitical manipulation. The diary examines China’s critical attitude towards Trump’s tariff threat and examines the more comprehensive impact on the international economic order. By examining the most important developments, political answers, and potential future scenarios, this study seeks to understand the dynamics that promote US-China trade conflicts and assess their long-term outcomes. The analysis considers how other global actors adapt to this changing landscape and what lies before the eyes of a world that is increasingly shaped by economicism and competition of great power.
This article examines China’s brave attitudes, taking into account the analysis of Trump’s tariff threat and how the trade war will develop over the next few years.
Rising US-China Trade Tension
When Donald Trump took office in 2017, he quickly changed the tone of US foreign trade policy. The Trump administration has accused China of unfair trading practices, currency manipulation, and intellectual property theft and launched many tariff hikes to force Beijing to undergo structural changes in its economy. This included an increase in tariffs on Chinese imports of hundreds of millions of dollars.
China responded to his own measures. Instead of restricting US prints, Beijing Customs has been adjusted to aim for important American exports such as soybeans, cars, and planes. The Chinese government has also diversified its global trading partners, increased investment in domestic production, accelerated initiatives such as the “Made in China 2025” plan, and reduced its dependence on foreign technologies.
China’s resilience and strategic reaction
Despite economic turbulence, China was still decided. Chinese leaders have denied pressure under pressure by representing Trump’s tariffs as a form of economic bullying. Several factors explain this immobility:
1. The Chinese government has used state subsidies, monetary policy tools, and fiscal stimulus to use large domestic markets to stabilize growth, using states to provide a blow to the US.
2. Nationalism and domestic support: Trump’s aggressive trade rhetoric mystifies the atmosphere of Chinese nationalism. The Chinese people gathered behind the government and interpreted the trade war as a test of state strength and sovereignty.
3. Global Alliance: China has worked to strengthen its relationship with other economies. With the European Union, the persecution of trade agreements with ASEAN countries, and participation in the Regional Comprehensive Economic Partnership (RCEP), China has shown that it is not isolated and has non-US options outside the US.
Economic Impacts of Trade Wars
The trade war caused economic pain on both sides. American farmers suffered from retaliation obligations, while Chinese manufacturers dealt with increased production costs. Multinationals captured at Crossfire had to reevaluate their supply chains and production strategies. However, it had a more subtle and complicated long-term impact. Some industries in both countries benefited from protectionist measures, while others were forced to be innovative and adapt. It is important that the trade war has encouraged both countries to reassess their interdependence and spark discussions about economic decoupling.
What’s coming next: The Future of the Trade War
Trump is no longer in office, but his trading policies have left a lasting legacy. This bid has signaled the cross-party consensus in Washington, largely maintaining tariffs and controlling the need for a more difficult attitude towards China. China’s actions did not change dramatically during the trade war, indicating a change in approach to Beijing. This was the beginning of a broader economic and geopolitical conflict that went far beyond trade and encompassed areas such as technology, data management, and military impact on the Indo-Pacific.
Many US businesses and consumers were bearing the main burden of tariffs. American farmers were heavily affected by China’s retaliation measures, and the Trump government asked to approve billions in subsidies. In the meantime, certain product prices rose in Germany, with US manufacturers facing higher input costs. The trade agreement “Phase 1” was signed in January 2020, with China agreeing to purchase more American goods and agreeing to enter into only a limited commitment to intellectual property. Important structural issues such as government subsidies and technology transmission remained unresolved. Some possible scenarios for the development of trade conflicts are as follows:
Longer Strategic Rivals: Trade wars could enter a broader economic cold war, including bans on technology, investment restrictions, and competition for global standards. Tensions over semiconductors, AI, and green technology could be the focus.
Selective Cooperation: While rivalries remain, the US and China can find common ground for questions such as climate change, pandemic responses, or financial stability.
Global Reorganization: As jockeys in the US and China, other countries may be forced to choose or maintain neutrality. Regional alliances such as Quad and RCEP play an important role in the design of a new economic order.
Internal Issues: Both countries have domestic issues that could affect trade policies. China’s real estate crisis and demographic changes could limit economic attacks, but the US political sector and inflationary pressures could affect future tariff decisions.
China’s relentless response to Trump’s tariff threats indicates a wider change in global geopolitics. China is no longer willing to play a lower role in the global economy and is willing to demonstrate its willingness to deal with strategic patience and national unity.
The long road before
has not ended the trade war between the US and China. The dramatic tariff battle during the Trump era is chilling, but the underlying rivalry remains strong. China, which refused to surrender to Trump’s pressure tactics, reflects broader confidence in its economic model and global ambitions. The US continues to view China as a strategic competitor and adapt its guidelines accordingly.
As a short-term battle, this trade war is part of the long-term strategic competition that will shape the global economy for decades to come. The two powers continue to come together and work together in various fields, but the rest of the world observes closely and navigates the tensions and opportunities that determine this economic relationship.
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