Trade war: Trump wants to isolate China economically, China seeks coalition
16 April 11:27
The administration of US President Donald Trump is developing a large-scale strategy to isolate China economically through tariff negotiations with other countries. According to The Wall Street Journal, the United States plans to use the current trade negotiations with more than 70 countries to create a kind of anti-Chinese economic alliance, Komersant ukrainskyi reports.
The essence of the strategy is to offer countries a reduction in US tariffs in exchange for a commitment to limit economic ties with China. In particular, the United States will urge partners to prevent the transit of Chinese goods through their territories, not to accept Chinese companies trying to avoid US tariffs, and to limit the consumption of cheap Chinese industrial products.
The main architect of this strategy is US Treasury Secretary Scott Bessent, who presented this idea to Trump on April 6, and Trump obviously liked it. According to the minister, such measures should weaken the already unstable Chinese economy and force Beijing to negotiate from a weaker position before a potential meeting between Trump and Xi Jinping.
President Trump already publicly hinted at this strategy on April 15, declaring his intention to force countries to choose between the United States and China. This happened after Panama refused to continue participating in China’s Belt and Road Initiative.
on April 9, Trump announced a 90-day pause in the application of reciprocal tariffs with all countries except China. This allowed Bessent, who now plays a leading role in tariff negotiations, to implement his strategy of isolating the Chinese economy.
Among other potential measures against China, the exclusion of Chinese companies from American stock exchanges is being discussed. However, the final goals of this policy towards China have not yet been determined, and the possibility of a trade agreement between the countries still remains.
Bessent is already actively negotiating with key US partners, including Japan, the UK, Australia, South Korea, and India. Earlier, he tried to negotiate with Mexico to introduce mirror tariffs on Chinese goods, calling it a “nice gesture,” but this idea did not receive sufficient support in the administration.
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China’s countermeasures
China, for its part, has also stepped up its trade diplomacy. Recently, Xi Jinping visited Vietnam, an important US trading partner that has been affected by Trump’s tariffs, and signed dozens of economic agreements there.
Chinese diplomats have sent official letters to government officials of other countries that have been pressured by Trump on trade negotiations. These letters outlined China’s position and emphasized the need for multipolarity and joint opposition to American policy.
The Chinese Ministry of Foreign Affairs has summoned the heads of its foreign missions to Beijing for a special meeting to coordinate a response. China has also approached some G20 governments with a proposal for a joint declaration in support of the multilateral trading system.
However, according to the WSJ, experts believe that China’s ability to counter the US tariff policy is limited. The United States remains a “huge net importer,” while Beijing is reducing imports and focusing on self-sufficiency. According to Peter Harrell, former senior director for international economics at the National Security Council, China will not be able to replace the United States as a source of demand for many developing countries, although it is acting quite reasonably in political terms.
The challenge in the trade war is accepted
The Chinese authorities have developed a comprehensive plan of action that includes retaliatory tariffs, restrictions on about 60 US companies, and export restrictions on rare earth metals. This plan is the result of weeks of preparation by government officials who were tasked with studying Trump’s policies and proposing countermeasures that could be gradually strengthened.
It is worth noting that this tough stance is a sharp turn in Beijing’s strategy. Previously, China tried to avoid an escalation of the trade war – for months, Chinese diplomats have been trying to establish a channel of communication with the Trump administration to discuss the economic relations that the Chinese cabinet describes in state media as mutually beneficial.
Now, President Xi Jinping has chosen to respond decisively, imposing tariffs on American goods even before Trump’s announced duties have taken effect. These measures were announced just before the opening of Wall Street on April 4, causing a sharp drop in US stocks.
As of April 15, 2025, the United States increased duties on Chinese imports to 145%, leaving temporary exemptions for certain technology products at a rate of 20%. In response, China has introduced mirror measures, imposing duties on US goods up to 125% and restricting exports of critical rare earth metals. The trade confrontation between the two countries is escalating, with no signs of de-escalation.
