An expert suggests that China may be quietly conceding to the U.S. on trade disputes, despite public posturing. Gordon Chang from the Gatestone Institute highlights subtle actions by China that indicate a willingness to compromise without outright acknowledgment. President Trump’s recent revelation of discussions with Chinese leadership adds another layer to this evolving narrative, as both nations navigate complex economic relations.
Amid ongoing tensions, China is reportedly considering exemptions for certain tariffed goods, even as it maintains a tough stance publicly. The interplay between these moves and domestic challenges within China reveals a multifaceted approach to managing international trade pressures while addressing internal economic concerns.
A Strategic Retreat: China's Subtle Concessions
Gordon Chang argues that China's decision not to enforce tariffs on specific products reflects a strategic retreat. By avoiding direct announcements, Beijing seeks to preserve face while offering concessions to Washington. This nuanced strategy involves selective exemptions for aviation, chemicals, and technology sectors, aiming to ease bilateral tensions without openly admitting defeat.
This method aligns with China's traditional diplomatic style, where subtlety often replaces explicit declarations. According to Chang, such actions demonstrate an underlying vulnerability amidst slowing GDP growth and declining consumer spending. Furthermore, India's recent steel tariffs signal broader global shifts against Chinese exports, increasing pressure on Beijing to reconsider its rigid position. As other nations adopt similar measures, China faces mounting difficulties sustaining its export-driven economy.
Negotiating Challenges: Xi Jinping's Dilemma
President Xi Jinping finds himself cornered by his own rhetoric, complicating any potential agreement with the U.S. Chang explains that reaching a deal would require Xi to justify compromises to the Chinese populace, a challenging task given years of anti-American propaganda. This predicament underscores the delicate balance required to maintain national pride while pursuing economic stability.
Xi's predicament stems from conflicting priorities—upholding domestic support versus securing favorable trade terms. His administration must address faltering economic indicators, including negative price indices and reduced tax revenues. Simultaneously, deglobalization trends exacerbate China's reliance on foreign markets. In this context, prolonged tariff exchanges could further strain an already fragile economic landscape. Thus, finding common ground with the U.S. remains critical yet fraught with political risks for Xi's leadership.