TAIPEI (Taiwan News) — China is hoping to avoid isolation similar to the Soviet Union during the Cold War by seeking dialogue with the US, a WSJ report said.
The report said that according to people who consult with Chinese officials, Chinese leader Xi Jinping (習近平) is preparing to respond to any economic pressure. He hopes to safeguard the global trade system that US President Donald Trump sees as disadvantageous to the US.
China has condemned Trump’s tariffs, arguing they add to inflation and hurt the global economy. It has prepared response measures, such as export controls on critical minerals, to hit back at the US.
At the same time, China has sent delegations to the US to engage Trump officials in potential deals. According to Heritage Foundation researcher Michael Pillsbury, China’s goal is to avoid tariffs.
The 10% additional tariff this week came unexpectedly to Chinese leadership, the report said. Chinese leaders view Trump as an erratic leader, and they have been figuring out how to engage him.
Trump’s first few months in office have seemed to prioritize issues besides China, such as Russia's war in Ukraine, government spending, and immigration. According to one Trump administration official, his moves are to put more resources into countering China in the future.
To change what Trump sees as a global economic system harmful to US interests, US officials are seeking to renegotiate deals with its trade partners. To combat China, the report said Trump officials are also considering restricting Chinese investment in the US and US investment in China, targeting Chinese industries such as shipbuilding, and new restrictions on high-tech products sold to Chinese companies.
Meanwhile, Trump’s professed personal relationship with Xi, whom he called a “good friend,” may allow the US and Chinese sides to find common ground, the report said.
