China is winning Trump's trade war?

 China is winning Trump's trade war?

Xi Jinping and Donald Trump

The recent trade discussions between the United States and China held in Geneva and London have offered temporary relief, yet they have not addressed the ongoing crisis between the two nations. US President Donald Trump has characterized these temporary measures as a 'deal' and asserted, 'These deals are beneficial for the United States.'

However, China perceives the situation quite differently. From China's perspective, they have emerged from this trade dispute with increased confidence and self-sufficiency. They believe that their long-term strategy is yielding positive results.

The intense trade conflict between China and the United States commenced in 2018. Since that time, China has implemented a strategy that incorporates both defensive and offensive tactics.

As part of its defensive approach, China has redirected its trade routes, sought alternatives to the dollar-centric global financial system, and significantly increased its investment in technology.

China aims to enhance domestic consumption, not only to stimulate consumer spending but also to elevate demand in critical sectors such as artificial intelligence and green technology.

In terms of offensive strategy, China has tightened its export regulations and showcased its capacity to respond swiftly and strategically to its opponents.

When the second Trump administration threatened or enacted new tariffs, China reacted promptly, adopted a firm position, and did not retreat.

China is not merely responding; it is redefining the entire trade conflict on its own terms.

Simultaneously, the policies of the Trump administration have revealed the extent of the US industrial sector's reliance on China. The US's dependence on China, particularly for rare minerals and various raw materials, has become increasingly evident.

Trump's tariffs have adversely affected U.S. manufacturers, compelling them to procure these materials at inflated prices. When China began to limit exports of rare earth minerals in early April of this year, it became clear to them that this was an effective means to exert pressure on US businesses.

Nations in the Global South, which harbor doubts about the Western development paradigm, are gaining assurance from President Xi Jinping's assertion that the world is experiencing a transformation that occurs once every century, recognizing China's unwavering position during this crisis.