By Hedelberto López Blanch on June 18, 2025
In recent years, Washington has tried unsuccessfully to diminish China’s economic and commercial influence, not only within the United States but also globally, but the Asian giant has so far been unstoppable.
The reality is that China appeared on the public stage as a strong competitor, and during Donald Trump’s first term as president in 2017, the White House pushed for a trade war against the Asian giant.
During the convicted tycoon’s second term, in April 2025, he signed a decree imposing a 10% base rate on all goods entering the United States and threatened countries subject to tariffs that did not respond in kind with punishment.
In his eagerness to weaken China, Trump launched a tariff war on products imported from that nation, which have risen from 10% to 145%. The Asian giant responded by imposing a 125% tariff on US products imported into its country.
As Beijing stood firm and refused to be intimidated, Washington had no choice but to enter into talks with its powerful opponent, which took place in Switzerland and London.
In Geneva, at the beginning of May, US tariffs on Chinese products were reduced from 145% to 30%, and China’s retaliatory measures from 125% to 10% for a period of 90 days, which came into effect on May 14. The agreements reached in London in the second week of June, as announced by both sides, are now awaiting publication.
The Chinese Foreign Ministry has stated on several occasions: “We will never stand idly by and watch the Chinese people’s legitimate rights and interests being deprived, nor will we stand idly by and watch international economic and trade rules and the multilateral trading system being undermined. If Washington insists on continuing a tariff or trade war, China will fight to the end.”
And the Asian giant is well placed to face the threats, as it has powerful scientific, industrial, manufacturing, and economic development, relations with more than 180 countries around the world where it can send its goods and receive a wide range of products in return. It also has a population of 1.417 billion people with high purchasing power.
It also has enormous wealth within its territory. It produces 90% of the world’s rare earths, a group of 17 elements used in the defense, electric vehicle, energy, and electronics industries. The United States has only one rare earth mine, and most of its supply comes from China.
In the early stages of this trade war, Beijing responded by suspending exports of critical minerals and magnets, which are essential components for automobile manufacturers, aerospace manufacturers, and semiconductor companies.
Numerous leading US companies use these elements imported from China in their production, which dealt a severe blow to several companies in the country, prompting them to ask the White House to reverse the high tariffs against Beijing.
But China has another stronghold that it has held for several years: it has entered the US market by buying companies in the food, technology, automotive, real estate, and aeronautics sectors.
In 2013, the Chinese company WH Group acquired Smithfield Foods for $4.7 billion. This is the largest pork producer in the United States, with more than 59,000 hectares of agricultural land, and although its headquarters remain in Virginia, the entire property is now Chinese-owned.
A year later, in 2014, the Chinese computer company Lenovo concluded a deal with Google for $2.91 billion to acquire Motorola Mobility, which gave it access to decades of innovation developed in the United States and also strengthened its position in the global smartphone market.
In 2016, the giant Haier Group paid $5.4 billion to buy GE Appliances, General Electric’s historic appliance division. Production continues in the United States, but corporate management is based in China to lead the global appliance market.
In the automotive sector, in 2010, the Chinese state-owned corporation AVIC took control of Nexteer Automotive, a Michigan-based automotive steering systems company, and since then, US manufacturers have been forced to negotiate with that company. AVIC also acquired Cirrus Aircraft in 2011, a private aircraft manufacturer that opened up a sector previously dominated by US firms to Chinese companies.
Beijing’s penetration of the real estate market came in 2014 when Anbang Insurance Group paid $2 billion for New York’s historic Waldorf Astoria. In 2016, it bought Strategic Hotels & Resorts for $6.5 billion, and after the Chinese government intervened, the assets came under state control.
Similarly, in 2017, HNA Group acquired a skyscraper in Manhattan for $2.21 billion, further consolidating the Asian giant’s position in the luxury real estate market.
After analyzing these realities and other tools that China has up its sleeve, it is understandable why the Asian nation terrifies Washington: its already worn-out global hegemony is increasingly weakening.
Trump’s tariff war may make him look tough but the reality is that only 13% of China’s exports go to the US. This raises the question who stands to lose in a trade war like this? China or the US.
Source: Cuba en Resumen