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Home » Why U.S. Tariffs Won’t Derail China’s Global Strategy

Why U.S. Tariffs Won’t Derail China’s Global Strategy

| By Heath Muchena

Techeconomy by Techeconomy
June 1, 2025
in Commerce
0
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While America leans on tariffs and sanctions to reassert its global dominance, China answers with patience, pragmatism – and a 5,000-year historical memory.

China’s response to escalating U.S. pressure has not been reactionary. It has been strategic. While Washington tightens tariffs and sanctions, China continues quietly entrenching itself in global supply chains, building influence through infrastructure investment, trade partnerships, and diplomatic consistency.

Unlike America’s fast-paced political cycles and headline-driven policymaking, Beijing plays the long game – centuries, not election seasons. And that’s exactly why sanctions, tariffs, or tech bans may irritate China’s rise – but they won’t stop it.

The Global Factory That Can’t Be Isolated

Over the last three decades, China has evolved from a low-cost labour hub into the beating heart of the global supply chain.

From iPhones to wind turbines, from textiles to AI chips, China produces – and increasingly innovates – everything. Even something as basic as the toothbrush in your bathroom or the fiber in your hoodie likely traces back to a Chinese plant.

Trying to isolate China economically today is like trying to remove oxygen from air travel. The world is too interconnected.

You sanction one Chinese industry, and the shock ripples across Tokyo, Nairobi, São Paulo, and yes – back to Kansas and Ohio.

Tariffs Hurt the Shopper, Not the State

When former U.S. administrations imposed tariffs on Chinese goods, the goal was to punish Beijing. But the real loser? The American consumer. Prices went up.

Local businesses paid more for inputs. And despite the political noise, the trade deficit didn’t meaningfully shrink. That’s because China isn’t just a supplier – it’s a critical buyer too, especially of American agriculture, semiconductors, and aircraft.

And let’s be clear: For every American attempt to “decouple,” China has quietly built alternative markets across Africa, Latin America, Southeast Asia, and the Middle East. That’s what Belt and Road is really about – building relationships the West neglected.

Respect Over Rhetoric

One key reason China’s approach resonates globally – especially in the Global South – is tone. China doesn’t moralize. It doesn’t arrive with “democracy lectures” or strings-attached loans. It offers ports, roads, railways, and trade. You may argue over the terms, but many nations prefer transactional pragmatism over patronizing politics.

That’s why even U.S. allies often tread carefully. While Washington talks tough, Germany still does big business with Beijing. Even Africa, once a pawn in Cold War games, is now playing its own hand – courting China not out of desperation, but by choice.

Look at regional trends too. ASEAN nations are boosting trade with China. Japan and South Korea, longtime U.S. allies, are hedging – trading with China while relying on America for security. The idea that Asia will rally against Beijing is outdated. Many countries want balance, not blocs.

Toward a Post-American Global Order?

China doesn’t need to “win” against America to succeed. It only needs to keep building, keep trading, and keep stabilizing its domestic economy. And that’s exactly what it’s doing – slowly shifting from export-led growth to a massive consumer-driven middle class. While the West bickers, Beijing plans decades ahead.

In this quiet but profound global transformation, the West wields blunt tools – sanctions, tariffs, and rhetoric. China counters with time, scale, and subtlety.

The 21st century may not belong to any one country, but the game is shifting. And those who play the long game usually win.

*Heath Muchena is the founder of Proudly Associated and author of Blockchain Applied, Tokenized Trillions and Why Emerging Markets.

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