China Maintains Cautious Silence as U.S. Moves Forward with New Tariffs

China has remained notably restrained in its response to Washington’s latest decision to impose an additional 10% tariff on all Chinese imports, opting for silence even as other nations hit back with retaliatory measures.

In contrast, Canada and Mexico acted swiftly. Canadian Prime Minister Justin Trudeau announced a 25% tariff on more than $100 billion (£81 billion) worth of American goods, declaring that Canada “will not back down” in defending its economic interests. Following mounting pressure, U.S. President Donald Trump reached separate agreements with both countries, agreeing to temporarily suspend tariffs on their imports. Despite those developments, the new tariffs on Chinese products are still scheduled to take effect on Tuesday, signaling that tensions between the world’s two largest economies are far from easing. Beijing’s muted reaction suggests it may be weighing its options carefully before deciding on its next move.

While the new 10% tariffs are expected to create some economic strain, Chinese authorities appear intent on maintaining stability and avoiding public alarm amid concerns about the nation’s slowing economic growth.

Beijing’s current position is also shaped by its diversified trade portfolio. In recent years, China has reduced its dependence on the U.S. by strengthening economic ties across Africa, South America, and Southeast Asia, emerging as the leading trading partner for over 120 countries.

According to Chong Ja Ian, a scholar at Carnegie China, Beijing’s restrained response is deliberate. “China likely believes it can absorb the impact of a 10% tariff,” he explained. “If the economic fallout remains limited, there’s little incentive for Beijing to escalate tensions with the Trump administration—unless doing so serves a broader strategic purpose.”

For now, China appears to be in a wait-and-see mode, carefully assessing the situation before deciding whether to respond with countermeasures or continue its diplomatic outreach.

Xi Jinping Seizes Opportunity as U.S. Turns Inward

Chinese President Xi Jinping appears to be capitalizing on the growing uncertainty created by the United States’ inward turn under President Donald Trump’s “America First” agenda. Within just his first month back in office, Trump has not only imposed sweeping tariffs on China but has also threatened similar actions against the European Union (EU) — alarming Washington’s long-standing allies and raising doubts about the reliability of U.S. economic partnerships.

In contrast, Beijing is working to project itself as a steady, dependable, and pragmatic global partner, offering predictability at a time when American policy seems increasingly volatile.

“Trump’s America First approach poses challenges and risks for nearly every country in the world,” notes Yun Sun, director of the China Program at the Stimson Center. “In the broader context of U.S.–China strategic rivalry, the erosion of U.S. credibility and leadership ultimately plays to China’s advantage. It may not benefit Beijing directly in its dealings with Washington, but China will certainly try to turn the situation to its favor.”

President Xi has long advocated for a “win-win” global order led by China — one rooted in multilateralism and cooperation rather than confrontation. Since the end of the COVID-19 pandemic, he has ramped up diplomatic outreach, voicing support for international institutions such as the World Bank and the Paris Climate Agreement. Chinese state media has portrayed this as evidence of Beijing’s role as a responsible global leader committed to international stability.

This pattern is familiar. In 2020, after Trump cut U.S. funding to the World Health Organization (WHO), China stepped in to increase its contributions, filling part of the void left by Washington. Now, with the U.S. retreating once again from several global initiatives, Beijing seems ready to assert itself as the alternative power center — even as it grapples with its own economic challenges.

As the U.S. withdraws from global leadership, China is positioning itself to expand its influence, appealing to nations seeking stability and continuity in an increasingly unpredictable world order.

Trump’s Freeze on Foreign Aid Sparks Global Concern

On his very first day back in office, U.S. President Donald Trump ordered an immediate freeze on all foreign aid programs funded by the United States — a move that abruptly halted hundreds of initiatives supported by USAID, the nation’s primary development agency. The suspension has left numerous humanitarian and development projects in limbo, with aid contractors reporting widespread confusion and uncertainty over when — or if — full operations will resume.

Analysts warn that this decision could significantly weaken Washington’s global standing. John Delury, a historian of modern China and professor at Yonsei University in Seoul, told the BBC that Trump’s actions risk sending the wrong message to both developing nations and long-time allies.

“The combination of tariffs on key trading partners and the freezing of foreign aid tells the Global South and OECD countries alike that the U.S. no longer prioritizes international cooperation,” Delury said.

In this shifting geopolitical landscape, Chinese President Xi Jinping’s steady rhetoric about “win-win” globalization is gaining renewed relevance. Beijing, which has spent years positioning itself as a champion of multilateralism and an alternative to the U.S.-led global order, may now see Trump’s foreign policy as an opportunity to expand China’s diplomatic and economic influence.

As the United States turns inward, China’s message of global partnership could resonate more strongly among nations seeking stability and continued engagement in an increasingly uncertain world.

New Alliances Emerging Amid Global Uncertainty

Despite Washington’s recent policy shifts, analysts remain divided on whether these changes will ultimately hand Beijing a clear advantage.

“I’m not entirely convinced this situation gives China a decisive edge,” says Chong Ja Ian, a researcher at Carnegie China. “Many U.S. allies—especially in the Pacific—have reasons to deepen ties with Beijing, but just as many reasons to stay cautious.”

That cautiousness is prompting closer cooperation among U.S. partners in the Indo-Pacific. According to the Australian Institute of International Affairs, momentum is growing behind a potential trilateral alliance between Australia, Japan, and South Korea, fueled by uncertainty surrounding a second Trump administration.

Heightened concerns about China’s assertiveness in the South China Sea and the prospect of a confrontation over Taiwan have driven these nations—and the Philippines—to bolster regional security ties. Beijing continues to view Taiwan as a breakaway province, refusing to rule out the use of force to bring it under its control. The issue remains one of the most sensitive flashpoints in U.S.-China relations, with Beijing sharply criticizing any American backing for Taipei.

Adding to the volatility are Trump’s unpredictable geopolitical maneuvers, from threats to annex Canada to discussions about purchasing Greenland. Such unpredictability has made many Indo-Pacific nations rethink their defense strategies. While they have long depended on U.S. military support to offset economic reliance on China, growing distrust of both superpowers may now push them toward new, independent security frameworks—alliances that could deliberately exclude Washington and Beijing alike.

Calm Before the Storm: Beijing’s Careful Response to Trump’s Tariffs

President Donald Trump’s latest round of tariffs landed just as families across China were celebrating the Lunar New Year, a season marked by red lanterns, family reunions, and prayers for prosperity. Yet behind the festive calm, concern is quietly building in Beijing.

While Canada and Mexico moved swiftly to retaliate, China’s reaction has been strikingly restrained. The Commerce Ministry announced plans to challenge the U.S. tariffs at the World Trade Organization (WTO)—a largely symbolic move since Trump had already weakened the WTO’s authority by blocking judicial appointments in 2019.

As the holiday draws to a close and senior officials return to Beijing, critical choices await. Some optimism has surfaced following what Trump described as a “great phone call” with President Xi Jinping last month—hinting at possible efforts to stabilize the strained relationship between the two powers.

For now, China appears to be treading carefully, signaling a willingness to negotiate in hopes of avoiding a deeper economic confrontation. Yet few expect the calm to last. In Washington, both Republicans and Democrats increasingly view Beijing as the United States’ chief strategic and economic rival.

“Trump’s impulsive style and unpredictability make major disruptions in U.S.-China relations almost inevitable,” warns Wu Xinbo, director of the Centre for American Studies at Fudan University. “His administration also includes several hardline voices on China—some extremely hawkish—so turbulence is all but certain over the next four years.”

Amid economic headwinds and a slowing domestic economy, Beijing faces a delicate balancing act. It must protect its growth while seizing the moment to capitalize on political disarray in Washington, expanding its global influence and forging new partnerships that could reshape the world’s balance of power.

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