The dynamics of the trade conflict between the US and China have been changing as Beijing remains steadfast.
Using its strategies, China is not willing to cooperate with U.S. President Donald Trump’s approach of “the art of the deal,” where he exerts significant pressure on his negotiation partners until they submit.
Aside from imposing tariffs, the U.S. has also taken steps like prohibiting the export of Nvidia’s AI chips to pressure China. However, indications suggest that China’s countermeasures are adversely affecting the American economy. Consequently, the responsibility for addressing this dispute is increasingly falling on Trump.
During a briefing on Tuesday, Karoline Leavitt, who serves as the White House press secretary, revealed that she had obtained a statement from Trump.
“The decision now lies with China; they need to strike a deal with us,” she cited him as stating.
China desires what we possess—the American consumer,” Leavitt stated. “To phrase it differently, they require our funds.
Leavitt stated that Trump had indicated he was receptive to striking an agreement with China. However, his comments essentially came across as a request for Chinese President Xi Jinping to start talks.
Certainly, despite the pressure exerted by Washington, Xi has chosen not to contact Trump to discuss a potential accord ever since both nations imposed higher tariffs on each other. Although Trump has maintained for several days that his “excellent rapport” with Xi will result in a favorable arrangement, he hasn’t yet discovered how to kick off talks with the Chinese leader.
The Trump administration has kept up the pressure on Beijing through actions like limiting sales of Nvidia’s H10 chips, arguing they could potentially be utilized in Chinese supercomputing systems.
Nvidia has been producing the H20 chips with lower performance for Chinese export to sidestep US government regulations. The Chinese information technology industry — including the AI company DeepSeek — depends on Nvidia for the chips.
NVIDIA forecast potential expenses ranging up to $5.5 billion due to newly implemented rules for the initial three months (from February through April). According to reports from Politico, individuals affiliated with the Trump administration are considering the option of removing approximately 300 Chinese firms from U.S. stock exchanges.
The White House continued its onslaught of pressure Tuesday by releasing information about a tariff rate of up to 245% being applied to Chinese products. Rather than representing the addition of new terms, the information appeared to be meant to play up Washington’s power by referring to the “245% tariff” on Chinese-made syringes that had been subject to a 100% tariff since the administration of Trump’s predecessor, Joe Biden.
But China has stood its ground, ordering its aviation companies to suspend negotiations with the US company Boeing with the aim of increasing the US’ trade deficit. Boeing has faced both rising production costs due to the US tariffs and declining sales due to China’s order to suspend negotiations.
The aircraft manufacturer Boeing is the US’ largest export business, with 70%-80% of its orders coming from overseas. The company reportedly recorded US$30 billion in exports last year, with China accounting for a large portion of that.
The AFP news agency reported that around 29 out of the expected 130 aircraft deliveries by Boeing this year were slated for Chinese carriers. Industry experts predict that China’s orders could represent approximately 20% of worldwide aircraft delivery numbers over the coming two decades.
In the meantime, CNN stated that communication lines between the US and China were not functioning properly.
A growing number of experts are cautioning that the U.S. may not emerge victorious if its prolonged trade conflict with China persists over the long haul.
In a recent article published in Foreign Affairs, Adam Posen, who serves as the president of the Peterson Institute for International Economics, argued that China possesses “escalation dominance” over the U.S., indicating that it holds a structural and strategic edge when it comes to taking the lead as tensions intensify.
As the “deficit country” in the bilateral trade balance between the US and China, the US is “entirely dependent on Chinese sources for vital goods,” Posen explained, arguing that by not ensuring “adequate domestic production before cutting off trade,” the Trump administration is “inviting exactly the kind of damage it says it wants to prevent.”
Posen dubbed the tariff war the “economic equivalent” of the Vietnam War — “a war of choice that will soon result in a quagmire, undermining faith at home and abroad in both the trustworthiness and the competence of the United States.”
The New York Times quoted Rush Doshi, a renowned China strategist affiliated with the Council on Foreign Relations, saying of the Trump administration, “They don’t have a grand strategy [for China] yet. They have a range of disconnected tactics.”
Bloomberg cited an anonymous source when reporting that China is internally preparing to make a deal with the US by establishing some conditions, including the US naming a person backed by Trump himself as their point of contact for talks.
The source also revealed that China wants the Trump administration to show more “respect” by reigning in its disparaging remarks about the country. Such reports demonstrate that China will not be quick to raise any white flags.
By Kim Won-chul, Washington correspondent; Lee Jeong-yeon, Beijing correspondent; Lee Jae-yeon, staff reporter
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