PNN – Donald Trump’s return to the White House has created threats against China due to his promises to impose tariffs on China, but according to CNN, Beijing has prepared and equipped itself for this war.
According to the report of Pakistan News Network, this media added: In the summer of 2018, when the then US President Donald Trump started a trade war with Beijing, China’s economy was growing. There were even talks that showed that this country could soon surpass the United States and become the world’s largest economy.
But now, with only a few months left before Trump’s re-election, it appears that China is not ready for another war in the face of challenges posed by assets, liabilities and deflation.
But this is the appearance of the matter. China has been preparing for this day for a long time, said Dexter Roberts, senior member of the Atlantic Council and author of the Trade War Newsletter.
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This media explained that China and its companies reduced their commercial dependence on the United States in their first trade war with the United States, which continued in the administration of Joe Biden. The impact of this reduced dependency is felt in business data.
By 2022, trade between the two countries was at the highest level. But according to the data of the US Department of Commerce, last year Mexico replaced China as the main exporter of goods to this country. China had maintained this position for 20 years before a 20% decrease in its exports to the United States last year, bringing it to 427 billion dollars.
According to the report of “Meteo Asia” Investment Company, only less than 30% of China’s exports go to the rich countries of the Group of Seven, which has decreased by 48% compared to 2000. Despite less export to America, China’s share in global exports is currently 14%, which has increased by 13% compared to the first period of tariffs imposed by Trump.
China’s international trade negotiator and vice minister of commerce, Wang Shuwen, told reporters on Friday: “We can solve problems and withstand external shocks.”
Lisa Tobin, Chief Economist at the Competitive Studies Project, an American think tank, also said: Don’t expect a simple retaliatory measure regarding tariffs. Beijing’s response is likely to be more targeted and asymmetric.
Larry Hugh, chief China economist at Macquarie Economic Bank, said: China may wait until Trump takes office and announces tariffs for bigger measures.