Five cards that China keeps in a trade war with the United States

A commercial war between the world’s largest economists is now in full swing.

Chinese exports to the United States face up to 245 % of the customs tariff, and Beijing fell with 125 % on American imports. Consumers, companies and markets are ready for more uncertainty while increasing fears of global recession.

The government of Chinese President Xi Jinping has repeatedly said it was open to dialogue, but warned that it was “if necessary,” will be fighting to the end. “

Here’s a look at what Beijing has a arsenal to counter US President Donald Trump’s tariff.

China is the second largest economy in the world, which means that it can absorb the effects of definitions better than other younger countries.

With more than a billion people, it also contains a huge local market that can take some of the exporters who reeling from customs duties.

Beijing is still floundering with the keys because of The Chinese people do not spend enough. But with a set of incentives, from support for home appliances to “Silver Track” For retirees travel, can change.

Trump’s tariff gave the Chinese Communist Party a stronger driving force to open the consumer capabilities in the country.

“Leadership” might be very prepared to endure pain to avoid surrender to what they believe.

China also has a higher pain threshold as an authoritarian system, because it is less concerned about public opinion in the short term. There are no brackets or lower elections that will judge their leaders.

However, the disorders are a concern, especially since there is already angry with the continuous property crisis and job losses.

Economic uncertainty for definitions is another blow to young people who only knew emerging China.

The party was appealing to national feelings to justify the revenge definitions, as the government media calls on people to “the air storms together.”

President Xi Jinping may be anxious, but so far, Beijing struck a challenging and confident tone. One of the officials stressed: “The sky will not fall.”

China has always been known as the world factory – but it was flowing on billions to become more advanced.

Under the eleventh, he was in a race with the United States for technical domination.

It has invested extensively in local technology, from renewable energy sources to chips to artificial intelligence.

Examples include Chatbot Deepseek, which was It is celebrated as a huge competitor to chatAnd byd, which beat Tesla last year to become the largest electric car manufacturer in the world (EV). Apple loses its share in the precious market for local competitors such as Huawei and Vivo.

Beijing recently announced plans to spend more than one dollar over the next decade to support innovation in artificial intelligence.

American companies have tried to transfer their supply chains away from China, but they struggled to find the same range of infrastructure and skilled workers elsewhere.

Chinese manufacturers at each stage of the supply chain have given a decades -long feature to repeat.

That incomparable experience in the supply and government support chain China has made a huge enemy in this trade war – in some respects, Beijing has been preparing for this since the previous Trump.

Since Trump’s tariff reached Chinese solar panels in 2018, Beijing has reviewed its plans for a future that exceeds the United States -led global order.

It has pumped billions in The controversial trade and infrastructure programKnown as the Belt and Road Initiative, to support relations with the so -called global south.

The expansion of trade with Southeast Asia, Latin America and Africa comes as China is trying to break the United States.

American farmers have provided 40 % of soybean imports in China – this number is now hovering by 20 %. After the last commercial war, Beijing escalated soybeans at home and bought record amounts of the crop from Brazil, which has now become the largest supplier of soybeans.

“The tactic kills two birds with one stone. It deprives the American farm belt of a market that depends once and burns food security credentials in China,” says Marina Yue Chang, a professor participating in the Chinese Australian Relations Institute in Sydney.

The United States is no longer the largest export market in China: this spot now belongs to Southeast Asia. In fact, China was the largest commercial partner of 60 countries in 2023 – nearly twice the number of the United States. The largest source in the world, achieved a record surplus of 1tn at the end of 2024.

This does not mean that the United States, the world’s largest economy, is not a decisive commercial partner in China. But this means that it will not be easy for Washington to support China in a corner.

After reports that the White House will use bilateral trade negotiations to isolate China, Beijing warned the states of countries “Getting a deal at the expense of China’s interests.”

it will be Choose impossible For a large part of the world

“We cannot choose, and we will never choose (between China and the United States).”

Trump was firm with the decrease in shares after his comprehensive introductory announcement in early April, similar to amazing fees to “medicine”.

But he turned, stopping most of these definitions for 90 days after sharp sales in US government bonds. Also known as the cabinet, this investment has been considered a long time ago. But the trade war shook confidence in the origins.

Trump has since alluded to cancel the escalation of trade tensions with China, saying that the customs tariff for Chinese goods “will drop significantly, but it will not be zero.”

Therefore, experts note that Beijing now knows that the bond market can peel off Trump.

China also has $ 700 billion in US government bonds. Japan, a strong American ally, is the only United States holder to have more.

Some argue that this gives Beijing the financial lever: Chinese media have regularly put forward the idea of ​​selling or blocking the purchases of American bonds as a “weapon”.

But experts warn that China will not appear safe from such a situation.

Instead, this will lead to huge losses of Beijing investments in the bond market and destabilize the Chinese yuan.

Dr. Zhang says China will only be able to put pressure with US government bonds “up to only one point.” “China carries a bargaining slice, not a financial weapon.”

What China can though, however, is its near monopoly in extracting and refining rare lands, a group of important elements to manufacture advanced technology.

China has huge deposits of these, such as dysprosium, which is used in magnets in electric vehicles, wind turbines, and yttrium, which provides heat -resistant coating for jet engines.

Beijing has already responded to the latest Trump’s tariff by restricting exports of seven rare land, including some necessary to make artificial intelligence chips.

China represents about 61 % of rare land production and 92 % of its refining, according to IEA estimates (IEA).

While Australia, Japan and Vietnam began mining for rare land, it takes years before China is cut off from the supply chain.

In 2024, China banned the export of other critical minerals, Antimon, which is very important for various manufacturing operations. Its price has increased more than a wave of panic and searching for alternative suppliers.

Fear is that the same thing can happen to the rare land market, which would disrupt various different industries from electric cars to defense.

“All you can run or turn off is probably on a rare ground.” BBC said previously.

“The influence on the American defense industry will be great.”