As the trade war intensifies, the resilience of China’s economy is under scrutiny. Zong, a prominent figure, states that China has improved its business relations globally, reducing reliance on the U.S. Shortly after the Trump administration imposed a 10% tariff on Chinese goods, Beijing swiftly retaliated with tariffs of its own on U.S. energy exports and automobiles, alongside measures targeting American tech companies like Google.
Trump’s assertion of a 25% tariff on steel and aluminium imports triggered similar responses from countries like Vietnam and India, impacting Chinese steel products. Despite these tensions, Zong remarks that China’s share of global exports remains strong. He anticipates that China will adopt a more proactive fiscal stance to bolster domestic demand amid these external pressures.
Alex Hongcai Xu from the China Association for Policy Sciences highlights that Chinese businesses are seeking to diversify their export markets and enhance international collaborations to mitigate the effects of the trade war. He envisions that financial supports, such as subsidies and tax benefits, will be directed towards agriculture and manufacturing sectors hit hardest by tariffs.
Both experts recognise that the U.S.-China trade conflict may pave the way for China to strengthen ties with Southeast Asian nations, the European Union, and other countries facing tariffs. This situation may also fuel the positive momentum of the Belt and Road Initiative (BRI), allowing China to reinforce its global partnerships.
Veteran diplomat Kishore Mahbubani believes that as U.S. aid diminishes, the BRI will become increasingly significant. With the U.S. halting most government-funded international aid while dismantling the United States Agency for International Development, countries will likely turn to China for assistance. Mahbubani underscores, “There are very few countries that can be as generous as the U.S. at that scale… and that is China.”
The escalating U.S.-China trade war sees China adapting successfully through enhanced global trade partnerships. Economists expect China to implement aggressive fiscal policies and support tariff-impacted sectors. As the U.S. pulls back on foreign aid, opportunities arise for China to strengthen ties with other nations and promote the Belt and Road Initiative, further asserting its global economic presence.
The increasing tensions of the U.S.-China trade war highlight China’s economic resilience and its potential to adapt through global partnerships. Experts predict that strategic domestic policies and diversification in export markets will cushion the impact of tariffs. With diminishing U.S. foreign aid, China may seize opportunities to strengthen its influence through initiatives like the BRI, positioning itself as a key player in international aid and economic collaboration.
Original Source: m.economictimes.com
