Jin Canrong (金灿荣), an international relations scholar and top advisor to the Chinese Communist Party’s leadership (including Xi Jinping), recently published an article commenting on U.S. tariffs against China. The article is titled “Trump still has two trump cards in his hand — China should be prepared to fight!” The following are key excerpts from his article.
The essence of the U.S. tariff hikes is psychological and political warfare – projecting a tough stance domestically while exerting pressure externally.
In recent days, the Trump administration has made contradictory statements regarding its tariff policy. It’s clear that there is a lack of internal coordination within the administration, as their rhetoric changes daily. This undoubtedly makes it difficult for us to tell which statements are genuine and to deal with them accordingly. If we invest significant effort, coordinate internally, and sincerely prepare for negotiations, only for them to change their position again, we will end up in an awkward situation.
In my view, China should focus on doing its own work well and respond to all changes with a consistent position. On the tactical level, we should fully support export enterprises (targeting the U.S.) in developing the domestic market or shifting to other markets.
Trump’s main target in the tariff war is China. Other countries might still have room to maneuver through concessions, but China won’t. Even if China makes concessions, the U.S. will not back off.
Moving forward, the U.S. can take additional actions against China:
- Expand the scope of tariffs to more sectors;
- Delist Chinese companies (Chinese stocks) from the U.S. capital markets;
- Impose taxes on assets owned by certain countries, including China, in the U.S. – direct asset seizure would be too extreme [to be feasible], but taxation is more feasible;
- Further restrict American companies from investing in China.
Among these, the second and third actions would have a relatively larger impact on China. We must be fully prepared and actively respond to this complex and severe tariff war.
Source: Guancha.cn, April 17, 2025
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