In 2018, then-President Donald Trump launched a full-scale trade war against China, marking a critical turning point in U.S.-China economic relations. The trade war began with a 25% tariff on $50 billion worth of Chinese goods, which quickly escalated as both nations imposed additional tariffs. Although Joe Biden took office in 2021, expectations of a policy shift were met with disappointment when he chose not to repeal Trump-era tariffs. Instead, Biden doubled down on the U.S. stance, promoting strategies like “decoupling” and “de-risking” to reduce reliance on China while encouraging “friend-shoring” to shift supply chains to allied nations.
Despite these efforts, the U.S. has failed to meet its key objectives. The American trade deficit has ballooned, reaching $1.06 trillion in 2023, and manufacturing has not significantly returned to U.S. soil. On the other hand, China has not only weathered the storm but has emerged stronger. By diversifying its trade relationships, particularly through the Belt and Road Initiative (BRI), China has maintained robust economic growth. Trade with BRI countries surged from 7.37 trillion yuan in 2017 to 19.47 trillion yuan in 2023. Meanwhile, China’s manufacturing sector has moved up the value chain, focusing on high-tech products like electric vehicles, lithium-ion batteries, and solar panels. In 2023, exports of these “new three treasures” surpassed 1 trillion yuan.
China’s strategic responses have included nearshoring production to Mexico and strengthening ties with Latin America, ASEAN, and the Middle East. These moves have allowed China to bypass U.S. tariffs, maintain its competitive edge, and reduce its economic dependence on the U.S. As China continues to build resilient supply chains and expand its global influence, the U.S. finds itself struggling with the unintended consequences of its trade policies. This video explores the complex dynamics of the U.S.-China trade war, the strategies both countries have employed, and the broader implications for global trade. Join us to understand how China’s economy has thrived amid adversity and what this means for the future of international economic relations.
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Has Uncle Sam gone insane? 😂😂😂😂
Uncle Sam has just flown over the Cuckoo nest.. what a laugh.. it is in no position to do anything.. how can a bankrupt money printing economy of 300 million people with terrible knowledge of geography.. takes on a 5000 year old culture with 1:4 billion people..
China's reaction to US tariffs is to restrict the exports of critical minerals the US needs for its military and industry. The latest mineral is antimony. Previously, germanium, gallium, cobalt, silicon wafers, and rare earth processing IP. For the US, it is a losing proposition because it will have to spend a lot to create the mines and processes to create its own domestic sources that will cost more. The same results as the EU restricting Russian oil, gas, and natural resources have all but gutted the EU industrial base and economies.
US can bully small countries but it can’t bully China which is a giant.
How can US fight a trade war with China? The only thing that still made in America is weapon, and the rest is made in China.
China 🇨🇳 should continue decoupling/de-risking and trade with Russia, Brazil, Venezuela and other countries that required help
Against All Odds!? Yep, Against All Theoretical Western Economists Odds! But Western Economists are far away from Objective Science Rules. It is not only that the maths makes sense, but the hypothesis must be tested and proven accurate by a large number of observers from a set of cultural beliefs to remove cultural bias. Now that China has a bigger base of Objective Science observers and theoreticians than the West a lot of Western policies based on Western Economics will have to face the realities of Objective Economics.
China problem-solver, USA problem-maker!
The West has lots of experience in war trade but lacking experience tin trade war.
CN goods sold too CHEAP so targeted by US to raise US revenue. US is delinquent, cannot raise direct taxes so used indirect tax, tariffs to raise revenue. As delinquent, US could not subsidise more Green products such as EV, which it should if it claims CN subsidies such. CN should impose tariffs on ALL EXPORTS to the US so US can no longer selectively choose which CN goods to raise tariff revenue on. Hit US hard, US inflation sky-rockets, US will have no choice but stop its tariffs. CN tariffs will also encourage CN COs to decouple with US, find other markets & not be so reliant on US’ market.