China’s Strategic Preparation for Global Economic Shifts:-
Well China has long been preparing for Less uh exposure to the US diversifying always ways not just in terms of trading partners investment but also currencies and payment system in fact the first time around the Trump tariff Wars have set off this complete globalization frenzy among the Chinese companies 80 something perc of them have already implemented going abroad plans this is cou Jin a Harvard educated Professor from the London School of Economics .
China’s Strength in the Face of Trade Wars:-
She lays out the exact reasons why China is entering this next trade war from a position of strength you see China is a country that Embraces strategic long-term planning and when Donald Trump launched his first trade war against China back in 2018 the Chinese learned a valuable lesson never be too reliant on your main trading partner over the past seven years China has been strategically growing the key Industries .
Expanding Global Trade Networks Despite US Decline:-
The entire global economy in fact if you look at the EV solar panels and all these what they call New productive forces very little of it is actually going to the US but it’s totally push them to embrace new uh opportunities and sign new trade deals and new trading partners global trade has actually expanded .
China’s Global Position in Trade and Economic Growth:-
China’s position in the world as a share of global exports has actually risen uh compared to before while us is declining so think China’s responses while us is you know kind of going back uh they’re going to open up as much as possible so so this is why Premier Lee has repeatedly said unilateral opening up zero tariffs on the least developing countries what cou Jin just said there cannot be understated all of these new Industries China is leading in electric vehicles solar panels High-Speed Rail very little of that is actually going to the United States if you’re in the US just look around you won’t see a single Chinese EV on the road but in places like Thailand Australia and Brazil Chinese automakers are absolutely dominating the market .
Trump’s Leverage in the Trade War Weakens:-
The top 20 fastest growing economies on Earth every single one of them is in the global South hotpots like the Middle East North Africa asia-pacific and subsaharan Africa meanwhile not a single American or European country is on that list many Western economies are stuck at 0 to 3% growth teetering on the edge of recession and who is the number one trading partner for every single one of these Rising economies .
China’s Unilateral Approach to Trade Tariffs:-
China hasn’t just dominated the fastest growing regions it’s become the largest trading partner for the majority of the world that is why China can with stand this tariff War far better than the us simply put china has a plethora of options but it doesn’t stop there it’s not just about who’s growing it’s also about who’s declining Western economies are not what they once were the average American and European for that matter simply doesn’t have the same disposable income they had decades ago and this trend is only getting worse that is going to be a massive problem for Trump because his biggest leverage in this trade war is supposed to be the US consumer Market but what happens when that market isn’t as powerful as it used to be to be that only leaves the industrial sector where the US is simply no match for China.
US Trade Strategy Backfires as Countries Seek Alternatives:-
Now don’t get me wrong this trade war will bring short-term pain to both economies but only one country has the long-term Runway to stick the landing China has been preparing for this moment for years by strengthening trade relationships across the globe just last year China announced it would have zero tariffs for all developing countries around the world cementing its position as the trade leader for the global South meanwhile the United States currently has sanctions on more than onethird of the global economy including 60% of all poor countries if developing country looking at who to trade with it’s a no-brainer China is the clear partner so today with the help of cug Jin we’re breaking down Trump’s latest barrage in his trade War not just against China but against the entire world ready this is a fascinating case study but first let’s examine the political landscape the world is currently in while China has been building bridges and securing trade deals Trump has been doing the exact opposite taxing his closest allies under his administration every country or region that has a trade surplus with the United States .
Growing EU-China Trade Relations Amid US Tariffs:-
If your country sells more Goods to the US then the US sells to yours you have two options either relocate your industries to the United States or face trade tariffs no one can predict Trump’s next move even Canada who is the United States closest Ally and neighbor was hit with 25% tariffs before Trump saw the stock market crash and quickly announced a 30-day pause to give time for Canada to negotiate what Trump will do with the rest of the world has yet to be seen but one thing is for certain other countries aren’t waiting around to find out every major economy is scrambling to diversify and find alternatives to us trade dependence we should not underestimate the degree and the pace of fragmentation that is happening multipolarity and the rise of economic blocks we’re already seeing the data whether it’s investment or trade the kind of the non-aligned blocks with the aligned blocks and their interaction with each other if you go around the world .
The Rise of China as the Global Economic Superpower:-
Likes of Brazil or aian countries what are they saying the same thing diversify don’t be at the mercy of the dollar or the US Financial system did you catch that don’t be at the mercy of the US Financial system that is the key lesson the world is taking from these tariffs earlier this week Ursula vandan president of the European commission sent out a clear message on China we will keep drisking our economies but there is room to engage and find agreements that could even expand our trade and investment ties and that could make sense for Europe to be honest it’s quite the Bold statement for Europe to announce for years has been at the mercy of the US government and blindly followed any policy the US president presents to them once again Trump has threatened to tariff the entire European Union which is exactly why we see this pivot back to China and a change in tone to once again being open to expanding trade interestingly enough a growing number of countries including longtime American Allies are rushing to strike independent trade deals .
Linking markets with over 850 million people and this is where things get really interesting with the EU now following in bricks footsteps and actively seeking alternatives to the us-led economic system the global economy is Shifting the world is increasingly moving towards a decentralized trade Network one that no longer revolves around Washington while the US falters and the EU scramble for an economic Lifeline Asia has firmly established itself as the center of global economic growth with China at the helm as the Undisputed economic superpower China now accounts for more than 30% of the world’s total manufacturing output and not only that China has completely Leap Frog the rest of the world in producing sophisticated electric vehicles batteries and solar panels at a scale and cost that no Western Country can compete with one of the fastest growing economic blocks trading .
Southeast Asia and the Middle East Prioritize Relations with China:-
Is Asian the Southeast Asian Powerhouse economies of Vietnam Thailand Indonesia and Malaysia which are pivotal economies crucial for the future of China’s success the biggest changes in trade can be seen in Asia nearly 60% of Asia’s trade happens within the region and half of the world’s fastest growing trade corridors are there in 2023 China’s exports to Asian Nations bypass those from the United States and with a majority of these countries either already in bricks or set to join these trade relationships are only going to deepen and it’s not just southeast Asia.
A New Global Economic Order Led by China:-
Looking West the Persian Gulf Nations Saudi Arabia the UAE and others have also begun prioritizing their relationships with China and India why energy Asia now accounts for over 70% of total oil and gas exports from the Gulf this energy trade combined with the Region’s critical position along the new Silk Road connecting China to Europe has turned the Middle East into one of the biggest beneficiaries of this new global economic order everyone the global landscape is quickly changing and with an unpredictable Donald Trump leading the United States for the next 4 years we honestly can’t predict all the changes we are going to see to our global economy .