"[The Trump administration] may have entered the office thinking that they could use their economic leverage to push China in certain policy directions," said Amanda Hsiao, a China studies director at the Eurasia Group consultancy."
""In fact, Beijing has its own pieces of leverage that match Washington's as well.""
""Basically the two sides had loaded each of their guns and pointed at each other," said Hsiao, before they realized the scale of the "mutually assured pain" inflicted on their economies."
China reported 5% economic growth for 2025, matching the government's annual target. The economy posted a record trade surplus of nearly $1.2 trillion for the year. Analysts attribute the surplus to dumping exports on non-US markets, indicating Chinese products remain globally competitive on price. Beijing has managed to cushion the impact of U.S. trade policies. The U.S. approach shifted toward economic and technology rivalry and introduced reciprocal tariffs, peaking with tariffs up to 145% and Chinese export controls on rare earths. Both sides recognized the scale of mutually inflicted economic pain and subsequently de-escalated.
Read at www.dw.com
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