Despite bravado talk publicly in response to Donald Trump's tariff increase, China reportedly is worried the president's return to the White House could hurt them greatly.
Trump on Tuesday imposed 25% tariffs on Mexico and Canada, and also doubled the tariff to 20% on goods from China. The president said his motivation is to stop fentanyl from invading the U.S.
A Foreign Ministry spokesman late Tuesday in Beijing warned China is ready for any "type of war" with the U.S.
Then on Thursday, the Chinese commerce minister said China will not yield to bullying and its economy can weather higher tariffs and other challenges.
However, Chinese President Xi Jinping is concerned Beijing could find itself cut off by trade restrictions and sanctions, The Wall Street Journal reported Thursday. Such a scenario would mean fewer outlets for its goods and limited access to vital technologies.
In fact, Xi worries about China becoming involved in another Cold War-like scenario in which his country battles the U.S. for economic, technological, and overall geopolitical supremacy.
"Now China is in danger of becoming the target of a similar rivalry," a source told the Journal. "Xi believes that must be avoided."
The report also said Xi, from the first trade war with Trump, learned his country has more to lose from responding to the tariff hike with proportional increases because the U.S. buys substantially more from China than the other way around.
Despite Trump seemingly agitating other world leaders with some of his moves so far, China's position is not a strong one.
Xi's domestic economy is in crisis, and the Chinese president wants to rely on the global trade system – one that Trump is determined to reform.
"They are kind of desperate," said Michael Pillsbury, a China expert at the Heritage Foundation, the Journal reported. "Their economy is in trouble. Now that Trump put the tariffs on, they know this campaign has failed."
Also, Trump's desire to end the wars in Ukraine and Gaza partly derive from his desire to better focus on China, sources told the Journal. His speaking diplomatically about Russian President Vladimir Putin is a way to affect the relationship between Moscow and Beijing.
Trump also wants the U.S. to reclaim control of the Panama Canal, which China has utilized to its benefit.
"All the stuff he's doing is so that we can put more resources" to counter China, an administration official told the Journal.
The Associated Press contributed to this story.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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