China’s President Xi Jinping may appear strong, but he faces a challenging test in his confrontation with the US. Despite facing tariffs imposed by President Donald Trump, China’s economy has shown resilience. To mitigate the impact, the Communist Party has promoted self-reliance and reduced dependence on foreign inputs, particularly in its technology sector.
However, this strategy also allows China to retaliate against other countries that oppose Western sanctions. By restricting exports of rare-earth minerals, a vital component used globally, China can exert pressure on its rivals.
While the US-China trade tensions are alarming, Xi Jinping’s approach highlights the need for more nuanced strategies in international relations. The use of tariffs as a tool of diplomacy is not without risks and consequences. As the global economy continues to evolve, it is essential to consider alternative approaches that balance economic interests with diplomatic efforts.
Source: https://www.economist.com/international/2025/04/15/xi-jinpings-trump-sized-puzzle