China Holds Back Its Response to US Tariff Increase Amid Growing Trade Tensions

In response to the recent 10% tariff imposed by the United States on all Chinese goods, China has opted for a restrained public reaction, focusing instead on urging dialogue. While Canada and Mexico have vowed to retaliate against US tariffs, with Canadian Prime Minister Justin Trudeau announcing a 25% levy on over $100 billion of American goods, China appears to be adopting a wait-and-see approach. According to Chong Ja Ian from Carnegie China, China may believe it can endure the impact of the new tariff, seeing no immediate incentive to escalate tensions.

Experts suggest that this may also reflect China's shift in economic reliance; it has diversified its trade relationships across Africa, South America, and Southeast Asia, solidifying its position as the largest trading partner for over 120 countries. John Delury, a historian at Yonsei University, believes that Trump's tariffs, combined with cuts in foreign assistance, signal a retreat of US leadership on the global stage, potentially benefiting China's pursuit of a new world order. As the political landscape evolves, China is expected to navigate its response carefully to minimize domestic concerns over its slowing economy.