China is preparing for a potential second trade war with Donald Trump, as analysed by Juliana Li for CNN.
Despite facing economic challenges, including property, debt, and deflation crises, Beijing is better equipped to counter Trump’s proposed 60% tariffs on Chinese goods. Analysts highlight strategies such as trade diversification, targeted retaliation against US companies, and strengthening domestic consumption.
Since the first trade war in 2018, which continued under President Biden, China has been reducing its dependence on US trade. Bilateral trade has declined significantly, with Mexico overtaking China as the largest exporter to the United States in 2022. Last year, Chinese exports to the US fell by 20%, yet China’s global export share rose to 14%.
Chinese officials, including Vice Minister Wang Shouwen, stress their preparedness to handle external shocks, asserting that the nation remains resilient amidst shifting trade dynamics.
Read More: https://www.cnn.com/2024/11/22/business/china-is-armed-and-ready-for-trade-war-2-0-with-donald-trump
