Summary
China changed its approach to U.S. tariffs under Trump’s second term.
Instead of reacting unpredictably, Beijing responded with targeted retaliation. It imposed tariffs on U.S. farm goods and blacklisted American companies.
Analysts said China prepared better this time by strengthening its economy and diversifying trade partners.
Unlike Canada and Mexico, which tried negotiating with Trump, China refused to engage directly. Its leaders said they would not appear weak or accept pressure from the U.S. but remained open to negotiations on equal terms.
Yeah, Chinese internal debt is a huge threat to the internal economy. Combined with losing construction as a main economic driver, I would expect a lost decade similar to Japan’s economic issues.
However, an American trade war with the world could benefit China as other countries decouple from American industrial exports that China can fulfill.