Though there is a 90 day pause in Trump’s latest unilateral imposition of reciprocal tariffs on most of the countries, the trade war between the USA and China, the two largest economies of the world is in full steam imparting tremors in global trade and economy. Close advisers of Trump were expecting a response from the Chinese President Xi Jinping in the form of a zoom call to Trump last weekend but that did not happen, instead Xi retaliated by imposing additional tariffs on U.S. goods as tit for tat.
The think tank of the U.S. President Donald Trump has been making an intense review of the impact of Trump’s actions on the basis of the feedback sent by the MAGA supremo’s friends in the industry as also in Wall Street, but the dominant view in the MAGA group is that the war must go on and Trump is sure to win in the end. This view which Trump himself shares underlines that most of the countries will start talking to Trump till the 90 day pause deadline and even if China continues to stick to its present stance, Trump will have more bargaining power to talk to President Xi at the end of the pause. America will emerge far more stronger after three months. MAGA doctrine will be vindicated.
As against this unilateralism of the U.S. President Donald Trump, Chinese President Xi Jinping has been pursuing a quiet trade diplomacy projecting him as the custodian of multilateralism and an ardent follower of global trade rules including the norms of World Trade Organisation. President Xi outreached to all three continents calling for jointly defending multilateralism by rallying against U.S. attacks on trade rules by unilaterally hiking the tariff rates.
First, Xi contacted the CELAC, the regional body of Latin American nations which had its conference on April 9. Xi sent a message to the 31 member regional body to work jointly for the preservation of global order in international trade and jointly meet the offensive of the U.S. President against international economic order. The CELAC members came out with a joint declaration on lines of President Xi’s message to fight jointly the tariff war imposed by Trump. Mexico and Brazil took the major role in framing a common strategy.
Next, President Xi appealed to the 28 member European Union to take a joint position against the unilateralism of Trump. The EU members have already worked out an action plan to meet the tariff offensive of Trump. President Xi’s call is being assessed though it is not expected that there will be a coordinated response to the offer from China immediately.. There are indications that some back channels discussions will be held soon to work out some arrangement beneficial to both China and the European Union members.
Then China has approached the RCEP members as also ASEAN members for consultations on a joint strategy for Asia. China has also appealed to India separately but Indian side, as of now, has given no response. President Xi Jinping visited Vietnam in his outreach to ASEAN nations on Monday and both governments came out with a declaration for boosting trade and economic relations in the context of the current global economic instability. Vietnam has got extensive trade relations with the USA. The government is assessing the impact of the proposed tariff rates on its exports to USA. The agreements with China during the visit have taken full care of the likely impact of the U.S. rates on Vietnamese exports to the U.S.
The official English daily of China Global Times comments in its April 15 edition that the hegemonic behaviour of the US constitutes a blatant violation of international justice. By prioritizing narrow self-interest over global stability, the US has exposed its myopic and irresponsible mindset. It mistakenly believes that it has unchecked power to force global trade to serve its own interests.
Then GT explains at this critical juncture, China has stepped forward resolutely. Through official statements condemning unilateralism and firm advocacy at the WTO, China has taken resolute countermeasures. This is not only a strong rebuttal to US unilateralism but also a firm defense of the multilateral trading system. As the world’s largest developing country and one of the most significant trading nations, China recognizes its responsibility to uphold the global economic order, a commitment underscored by its consistent defense of the global trade order, the trading system and trade rules.
The official Chinese view is that In the face of Washington’s maximum pressure tactics, Beijing has kept the door open for negotiations while making comprehensive preparations to withstand any potential shocks. China’s ability and confidence in countering any trade bullying comes from its vast domestic market, complete industrial system and growing technological innovation capabilities.
As the GT sees it, while China never initiates trade disputes on purpose, it will never back down from hegemonic actions. China’s stance has been consistent: If the US wants to talk, our door remains open, but dialogue must be conducted on the basis of mutual respect and equality.” If the US wants to fight, our response will continue to the end. Pressure, threats and blackmail will never work with China”, said He Yongqian, a spokesperson of China’s Ministry of Commerce on Tuesday. The US should correct its wrong practices and create an atmosphere and conditions for equal dialogue, he said.
It is an irony of history as also global diplomacy that the U.S. the Mecca of capitalism and globalization has opted for worst form of protectionism isolating itself from most of its European allies, while China has emerged as the strongest defender of global multilateralism. As Washington creates disruption to supply chains, Beijing fosters cooperation
According to the Global Times, the contrast between the US and Chinese trade approaches couldn’t be clearer. “As the US tears down rules, China works to improve them. As Washington creates disruption to supply chains, Beijing fosters cooperation. As the US wields tariff sticks, China further opens its doors.”
China certainly has its both short term and long term political motives- Who has not?- but right now in the middle of April 2025, China has been successful to a great extent in vindicating itself as a major power which favours the building of an open economy. What is more, while Washington feels that the globalization has harmed Americans, the Chinese daily says China recognises that “the trend of globalization is unstoppable.” (IPA Service)
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