By John Q. Hosedrinker 
Following increased US tariffs on Chinese imports, China is attempting to create a united front against the US, but this effort has seen limited success. While China has engaged in discussions with the EU and ASEAN, several nations, including Australia and India, have declined to join forces. Despite China’s refusal to negotiate and its retaliatory tariffs, President Trump temporarily paused tariffs on most countries, aiming to isolate China. Global markets reacted positively to the pause, although uncertainty remains regarding future actions by both the US and China.
Read the original article here
China’s escalating trade war with the US, marked by a staggering 145% tariff on some goods, has forced Beijing to actively seek out new allies. The immense financial pressure this tariff creates, potentially bankrupting small and medium-sized businesses in the US and leaving many inventors without incentive, is undeniable. This situation presents a critical juncture, forcing China to re-evaluate its international relationships and trade strategies.
The sheer magnitude of the tariff—a potential $200,000 swing for a single small business—highlights the severity of the situation. This isn’t simply a matter of economic hardship; it’s a potential catalyst for a widespread collapse of smaller businesses, potentially leading to an economic landscape dominated by giants like Amazon and Walmart. The argument that this could result in a complete overhaul of the American retail landscape is certainly plausible, leaving many questioning the long-term implications for American workers.
A significant concern is that China’s current relationship with Russia might be a liability. Propping up the Russian economy, already teetering on the brink of collapse, could be detrimental to China’s own economic stability. Maintaining support for Russia while facing these substantial US tariffs presents a considerable diplomatic and economic challenge. This, then, presents a compelling opportunity for Europe to leverage the situation, perhaps conditioning any trade deal with China on Russia’s withdrawal from Ukraine.
However, forming alliances might be easier said than done for China. Many countries are wary of China’s business practices, citing concerns over intellectual property theft and unfair competition. This makes the potential for genuine, mutually beneficial alliances challenging, particularly with Western nations. The experience of Australia, which wisely rejected closer ties with China, serves as a cautionary tale. The potential for China to use trade as a weapon, as evidenced by concerns over its possible actions in Taiwan, further compounds the issue.
The idea that China could retaliate by causing a global electronic shutdown or significant economic collapse should not be dismissed lightly. While this is a drastic scenario, the underlying tension and the potential for unforeseen consequences stemming from this trade war are real. The desire to make a deal with China is understandable, but the terms of such an agreement must be meticulously scrutinized, keeping in mind the past history of trade relationships with this economic power.
There’s an understandable pushback from many countries against China’s aggressive business tactics. Europe, in particular, is hesitant to concede to China’s demands, recalling previous instances of currency manipulation and flooding markets with cheaply-produced goods. Concerns over Chinese interference in domestic affairs are also prevalent, further complicating the pursuit of alliances. This reluctance from potential allies significantly weakens China’s negotiating position.
The current geopolitical climate mirrors a potential split into three major blocs. The US, with its existing allies, forms one. China, with Russia and other nations with shared geopolitical alignments, constitutes another. A third bloc might consist of nations attempting to remain neutral or strategically balance relationships between these two powerful entities. This potential fracturing of the global order makes the search for allies even more critical for China, though the path forward remains extremely challenging given widespread distrust. Furthermore, the possibility of a third term for a controversial leader such as Trump only adds to the complexity of the situation, introducing uncertainty and the potential for unpredictable actions.
In conclusion, China finds itself in a difficult predicament. The US tariffs represent a substantial blow to its economy, pushing them to actively seek allies. However, the legacy of aggressive trade practices and geopolitical posturing makes forming lasting and reliable partnerships extremely difficult. The world watches with bated breath, awaiting the unfolding of this complex and potentially destabilizing situation.