BEIJING – China is moving to reposition itself within the global trading system as U.S. tariff policies under President Donald Trump reshape international commerce.
Chinese policymakers view the evolving trade environment as an opportunity to strengthen the country’s $19 trillion economy by deepening ties with major economic blocs, including the European Union, Gulf states, and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The strategy includes accelerating negotiations on roughly 20 trade agreements that have been under discussion for years.
A review of more than 100 Chinese-language papers published since 2017 by scholars affiliated with state-backed institutions such as the Chinese Academy of Social Sciences and Peking University indicates a coordinated effort to assess U.S. trade policy and develop measures to reduce exposure to American economic pressure.
Recent developments reflect that approach. During Prime Minister Mark Carney’s January visit to Beijing, China and Canada reached an agreement that lowers tariffs on Chinese electric vehicles. According to interviews with officials and trade diplomats, the deal is seen as part of a broader effort to diversify trade relationships.
China’s Commerce Ministry did not respond to requests for comment. A U.S. official said it was expected that countries with significant trade surpluses would seek to preserve globalization, adding that Washington’s policy adjustments are aimed at addressing domestic economic concerns.
Expanding Trade Engagement
In recent months, Chinese diplomats have stepped up outreach efforts, promoting multilateral trade and development partnerships. In January, China’s top diplomat visited Lesotho following the imposition of U.S. tariffs on the country, pledging development cooperation.
State media also reported that China would implement zero tariffs on imports from 53 African countries. In parallel, Beijing is promoting artificial intelligence-based customs systems and upgrading digital trade infrastructure to facilitate cross-border commerce.
Policy papers reviewed suggest that Chinese advisers view “anti-decoupling” as a central objective, seeking to embed China deeply within global supply chains. Trade negotiations have continued with countries including Honduras, Panama, Peru, South Korea and Switzerland.
Chinese officials have also explored renewed economic dialogue with Europe and the Gulf Cooperation Council. In addition, China has prioritized accession to the CPTPP, a trade agreement that evolved from the U.S.-backed Trans-Pacific Partnership after Washington withdrew in 2017.
Surplus and Market Concerns
China’s trade surplus, estimated at $1.2 trillion, remains a key issue in discussions with partners. Some governments have expressed concern that expanded market access could lead to an influx of low-cost goods, particularly as China’s domestic demand remains subdued.
Wendy Cutler, a former U.S. trade negotiator for the Trans-Pacific Partnership, said that while China has positioned itself as a supporter of multilateral trade, structural trade imbalances remain a challenge. A senior European trade diplomat described Beijing’s overtures cautiously, noting that previous negotiations, including a 2020 EU-China investment agreement, were later frozen.
Former World Trade Organization Director-General Pascal Lamy said European markets may face limits in absorbing additional Chinese exports. Others have questioned whether closer trade ties with China would reduce dependence on the United States.
In North America, Canada’s recent tariff adjustments have drawn scrutiny in light of commitments under the U.S.-Mexico-Canada Agreement (USMCA). Mexican officials have indicated there is currently no need to pursue a bilateral free-trade agreement with China, citing existing participation in the CPTPP.
Long-Term Outlook
Analysts note that China’s strategy also includes efforts to shape global standards in areas such as intellectual property and digital trade. Initiatives linked to the Belt and Road program and participation in the Regional Comprehensive Economic Partnership (RCEP), which accounts for roughly 30% of global GDP, form part of that broader approach.
Upgraded trade arrangements with Southeast Asian partners now emphasize artificial intelligence-driven and digital commerce. At China’s “Friendship Port” on the Vietnamese border, state media reports that domestically developed AI systems have reduced customs processing times by 20%, though the claim could not be independently verified.
Economists say China’s long-term trade position will depend in part on its ability to boost domestic consumption. Officials have stated that expanding imports and raising consumption’s share of GDP will be priorities in the country’s upcoming five-year plan.
As global trade dynamics continue to evolve, policymakers and analysts say the trajectory of U.S.-China economic relations — as well as the responses of other major economies — will play a significant role in shaping the next phase of international commerce.
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