Washington/Beijing: The global trade environment has heated up once again after US President Donald Trump came to power again. The Trump administration has imposed heavy tariffs on many countries, in which goods imported from China were specifically targeted. In response to this move, countries like Japan, Vietnam and Bangladesh chose to bow down to America, but China has made it clear that it is not going to come under this pressure. China, under the leadership of President Xi Jinping, has given an open warning to America—if a trade war comes, it will fight till the last breath.

The game of tariffs and increasing tension

The US imposed tariffs on hundreds of billions of dollars worth of Chinese goods, citing unfair trade practices, intellectual property theft and trade imbalance. Trump said in his aggressive style on Sunday, “I will not ease the tariffs until America’s trade deficit is eliminated.” In response, China imposed reciprocal tariffs on American products with immediate effect on Friday. This move came as a shock to the global markets, raising fears of a long and destructive trade war among investors.

For the past several weeks, China has been trying to resolve this dispute through diplomacy. But now its attitude has changed. Beijing has given a clear message that it will prefer retaliation rather than bowing to pressure. Senior Communist Party official Niu wrote in an editorial on Monday, “We are no longer under the illusion of agreement. The door to talks is open, but first we have to show our strength.”

“First fight, then talk”

To understand this tough stance of China, it is important to look at the statement of Wu Xinbo, director of the Center for American Studies at Shanghai’s Fudan University. He told Bloomberg, “We believe that before reaching an agreement, we have to fight, because the other side wants a fight first.” On the possible talks between Trump and Xi, Wu made a sharp comment, “If you have slapped me, then I am not going to call you and apologize.” This statement clearly explains China’s new strategy—it will now first show its strength, and then sit at the negotiating table.

Surrender of three countries

While China has opened a front against America, countries like Japan, Vietnam and Bangladesh have surrendered under the pressure of tariffs. These countries agreed to change their trade policies by entering into agreements with America. Experts say that the economy of these countries is so dependent on the American market that they have no choice but to surrender. But China’s situation is different. Its huge economy and self-reliance give it the strength to fight this war.

Impact on global markets

China’s retaliation shook the stock markets around the world. Investors are once again caught in a vortex of uncertainty. Economic analyst Ramesh Thakur says, “This tariff war will not be limited to America and China only. It will affect the global supply chain, prices and employment. Consumers may also have to pay the price for this.” Learning from the experience of the last trade war, China has made preparations in advance this time, due to which it seems capable of responding to Trump’s move.
Trump’s strategy and China’s response
Trump believes that through tariffs he can strengthen the American economy and force foreign countries to balance trade with America. But China has challenged this strategy. Beijing has not only imposed tariffs, but has also started preparing for steps like sanctions on American companies and import restrictions. A Chinese official said on the condition of anonymity, “We will show Trump that this war can be fought from both sides.”
What next?
This conflict between America and China is no longer limited to trade. It has become a ground for economic and political power display. While countries like Japan, Vietnam and Bangladesh backed off, China has made it clear that it will fight at all costs. Will this dispute be resolved through talks or will it turn into a long war? This question is in everyone’s mind. At present, the tough stand of both the countries has created a stir on the global stage.

Final View

In this new episode of tariff war, China’s courage and the surrender of three countries reflect the changing picture of global trade. Trump’s aggressive policy and China’s counter-attack can give a new direction to the world in the coming days. How do you see this conflict? Share your opinion with us.