As President Trump makes strides to bring manufacturing back to the U.S. and finalizes trade agreements with countries like India, Japan, and South Korea, he asserts that China is no longer the “factory of the world.” Unsurprisingly, this is causing quite the uproar in Beijing.
With education regressing into a more nationalist framework, Chinese schoolchildren are being taught to harbor resentment towards the U.S. Class time is now filled with chants like “China must win the trade war!” — it’s alarming, really.
China’s Ministry of Foreign Affairs released a video insisting that the U.S. should not expect them to submit easily, presenting any sign of compliance as self-destructive. During a recent BRICS meeting in Rio, Foreign Minister Wang Yi added, “Only bullies engage in such tactics.”
Yet, behind closed doors, it seems Beijing is quietly seeking to ease tensions.
In an April 25 interview with Time magazine, Trump mentioned that Xi had personally reached out to discuss tariffs, a conversation that happened “many times,” according to him.
South Korean media are reporting that U.S. and Chinese officials have been discreetly engaging in dialogues regarding the “customs war.” A notable instance involved a high-ranking Chinese delegation arriving at the U.S. Treasury early on April 24.
These behind-the-scenes trade discussions are seemingly yielding results; China has started reducing tariffs on 131 American products.
However, the U.S. government’s narrative on these negotiations continues to mislead the global community.
Guo Ki-C, a spokesperson for China’s Ministry of Foreign Affairs, maintains that no trade negotiations are taking place, labeling other claims as unfounded and calling for the U.S. to stop “misleading the public.”
Interestingly, it’s this very “public” in China that Guo is concerned about misleading.
Of course, state media in China paints a picture of Xi heroically standing up against Trump, depicting a narrative of resistance amidst escalating tariffs.
It is widely believed among global leaders that instead of backing down, China has merely matched Trump’s tariffs with their own in a show of strength.
Think about it: With tariffs making headlines, Xi Jinping’s image is taking a hit. While he projected power, he’s now facing potential economic disaster. And signs of this looming crisis are becoming increasingly apparent:
- A mountain of containers sits idle at a Chinese port, piling up since they missed the tariff deadline on April 9, while cargo bookings between China and the U.S. are down by 50%.
- Empty factories along the coast, once bustling, are now quiet, with thousands of workers laid off from various industries like textiles and electronics.
- Streets in industrial towns are lined with closed shops; former factory workers now struggle to afford food or basic necessities.
The U.S. remains China’s largest market, consuming about one-sixth of its exports. If tariffs persist, economists project that 80% of Chinese goods could be priced out of the U.S. market, representing a staggering loss of around $400 billion.
Up to 10 million jobs could vanish in just weeks, with that number expected to rise even higher in the following months as the economic slowdown takes hold.
More worrisome for Beijing, though, is the risk of social unrest.
Even before the tariff hikes, unemployment was already rising above 10%. With millions more joining the ranks of the unemployed, unrest could be just around the corner.
Publicly, Chinese officials vehemently express their outrage, echoing sentiments from figures like Wang Qishan, the former vice president and Xi’s ally.
But behind the scenes, there’s a palpable concern about a repeat of the Tiananmen demonstrations from 1989.
That sentiment weighs heavily on Xi’s administration.
