How does China benefit from Trump's tariffs? - "Exploiting geopolitical tensions brings strategic benefits"
China has said President Donald Trump's tariffs could be turned to its advantage by reshaping global trade in ways that would insulate its $19 trillion economy from U.S. pressure in the distant future.
Beijing is exploiting the uncertainty created by Trump to try to unite China's vast manufacturing base with the world's largest economic blocs, including the European Union, the Gulf States and a trans-Pacific trade pact. The push includes accelerating efforts to reach about 20 trade deals in total, which have dragged on for years despite concerns and speculation about China's overproduction, unequal market access and weak domestic demand.
Many Chinese trade experts have found that there is a systematic push from the country to change US trade policy. China is now putting this plan into action. The agreement reached with Canada in January was the first of many aimed at countering US influence.
"Don't interrupt your opponent when he's making a mistake," a Chinese official said, referring to the White House's trade agenda. If the initiative proves successful, Beijing could overturn more than a decade of American trade policy, diplomats said.
But China's large trade surplus complicates the issue. Many countries say manufacturers can use improved market access to ship low-cost inventory abroad, while domestic demand in China is weak.
Meanwhile, as China prepares to welcome Trump in April, it is simultaneously taking steps towards deeper trade involvement, thus dictating the partners' intransigence under US pressure.
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