China's Strategies Against the US Trade War
Since the inauguration of Trump 2.0, the US has implemented a series of trade measures including reciprocal tariffs. China has expressed its willingness to fully respond, and scholar Nie Jianzhong noted that China holds a significant amount of US treasury bonds and controls essential rare earth materials, providing leverage in trade negotiations.
Nie identified four main objectives of Trump's tariff policies: increasing immediate tariff revenue, encouraging companies to invest and set up manufacturing in the US, inviting foreign tech firms to the US, and ultimately targeting China to deter potential competitors. With the escalation of the US-China trade war, China's countermeasures have become apparent, including possible sell-offs of US bonds and restrictions on rare earth exports to the US.
Additionally, Trump is eager for negotiations with China; however, Xi Jinping has yet to engage, leaving Trump anxious about the discussions.
