China's leadership has communicated its stance on the consequences of the Trump administration's extensive tariffs, indicating that while challenges may arise, the nation is equipped to manage them.
A recent commentary in the People’s Daily emphasized that Beijing had prepared for a potential trade war with the United States, suggesting that China could emerge from the situation even stronger. The piece noted, “The abuse of tariffs by the United States will have an impact on China, but ‘the sky will not fall.’” It asserted China's resilience and positioned it as a robust economy facing U.S. tariff pressures.
The article also highlighted China's intention to portray itself as a responsible advocate for fair trade. As the tariffs create economic disruption, China seeks to assert its strength and proposes solidarity with other nations affected by U.S. tariffs. In a separate commentary, China accused the United States of attempting to undermine the international economic order by prioritizing “U.S. interests above the common good of the international community.”
Despite the assertive narrative, the commentary acknowledges the potential severity of the tariffs' impact on China, particularly as the Trump administration aims to reshape the global trading system that currently favors China. Exports play a crucial role in China’s economic growth, especially as the country grapples with a property crisis and other economic challenges.
Nonetheless, the People’s Daily claimed that China has reduced its reliance on the U.S. market for exports and indicated that Chinese banks are well-capitalized, allowing for further investment in the domestic economy. The article mentioned the use of new regulatory measures as a means to counter U.S. tariffs, which included placing 11 American companies on an unreliable entities list and implementing export controls on certain rare earth elements.
China has been attempting to initiate high-level discussions with the Trump administration in anticipation of a potential summit between leaders. However, Beijing has reportedly faced difficulties in eliciting a response from the White House, even after President Trump expressed openness to engagement with President Xi Jinping.
China's previous responses to U.S. tariff rounds have been measured, maintaining an openness for negotiations. The People’s Daily commentary reiterated that China “did not close the door for negotiations,” yet also signaled preparations for possible adverse outcomes, emphasizing the need to reform its economy to rely more on its domestic market.
Despite its confident declaration about enduring the tariffs, China has restricted discourse surrounding its retaliatory measures. A researcher from the Chinese Academy of Social Sciences criticized the tariffs on social media, suggesting that China should avoid self-harm in its countermeasures. Following this, the academy announced the closure of the center where the researcher worked, citing internal regulations that emphasize adherence to correct political direction.
On social media, nationalistic commentators expressed support for the center's shutdown, correlating it with the researcher’s remarks, underscoring the sensitivity surrounding criticism of government policies.