-Trump’s Bargain with Xi: A Dud
- This article from Asia Times argues that despite renewed trade pressure from a potential Trump 2.0 administration, China is proving remarkably resilient and may have already adapted to...
- * China is diversifying its trade: Following the initial Trump trade war, China proactively shifted its trade focus away from the US, increasing exports to Europe, Southeast Asia,...
- In essence, the article suggests that China is no longer as vulnerable to US trade pressure as previously believed, and that Trump's approach is outdated and may even...
Summary of the Article: “can Anything Knock China Off Its Mountain?”
This article from Asia Times argues that despite renewed trade pressure from a potential Trump 2.0 administration, China is proving remarkably resilient and may have already adapted to overcome the challenges.Here’s a breakdown of the key points:
* China is diversifying its trade: Following the initial Trump trade war, China proactively shifted its trade focus away from the US, increasing exports to Europe, Southeast Asia, and the Global South.This mitigates the impact of new US tariffs.
* circumventing Tariffs: Chinese exporters are utilizing “rules-of-origin-bending transshipments” - routing goods through countries wiht lower tariffs – and relocating late-stage production to avoid US levies.
* southeast Asia at Risk: This transshipment strategy is negatively impacting Southeast Asian economies reliant on exports, and China’s overcapacity threatens to derail thier “China+1” manufacturing dreams (diversifying production away from solely relying on China).
* US Export Controls Draw Criticism: China’s Ministry of Commerce condemns US export controls and unilateral actions, arguing they harm Chinese interests and hinder trade talks.
* Trump’s Outdated Strategies: The article criticizes Trump’s economic policies as being rooted in the 1980s (a weaker dollar, trickle-down economics) and ill-equipped to deal with the current global landscape.
* “Made in China 2025” is a Game Changer: China’s ambitious industrial policy, “Made in China 2025,” is fundamentally reshaping the global economy and rendering older trade strategies ineffective.
* Despite US decline in exports, global exports are up: While exports to the US have decreased, China’s overall global exports have increased, demonstrating its adaptability.
In essence, the article suggests that China is no longer as vulnerable to US trade pressure as previously believed, and that Trump’s approach is outdated and may even be counterproductive. China has proactively prepared for this scenario and is successfully navigating around the obstacles.