{Editor’s Note: Since taking office, President Donald Trump launched a trade war by imposing steep tariffs on countries with which the United States had trade deficits. The U.S. levied tariffs of up to 145 percent on Chinese goods. China was the only country to retaliate against the US directly in response to tariffs imposed during Trump’s second term, countering with tariffs of up to 125 percent on U.S. imports.
On May 10–11, the U.S. and China held economic and trade talks in Geneva, Switzerland, culminating in a joint statement released on May 12. The agreement announced a 90-day truce: the U.S. would reduce tariffs on Chinese goods to 30 percent, and China would lower tariffs on U.S. goods to 10 percent. During this period, both sides committed to ongoing negotiations on broader trade issues, with the U.S. pressuring China to open its markets and increase U.S. imports in an effort to reduce the trade imbalance.
Both governments claimed victory following the announcement.
On Chinese social media, jubilant headlines declared “China Won, America Knelt.” The following is an excerpt from one such commentary by Shen Yi, a professor of International Politics Department at Fudan University, one of China’s most prestigious universities.}
Yi’s Sharp Insight: The World Should Learn from China’s Example – Only by Standing Tall Can We Push Back Against the U.S.
By Shen Yi, Professor of International Politics Department, Fudan University {1}
China has achieved a resounding victory. Not only did we prevail, we did so decisively. This so-called “victory” means that the tariff bullying by the U.S., which began on April 2, was effectively repelled by China. More importantly, this victory reinforced the principle of reciprocity.
What does “reciprocity” mean here? According to the Ministry of Commerce, the U.S. agreed to cancel 91 percent of its additional tariffs on Chinese goods, and China reciprocated by canceling 91 percent of its countermeasures. The U.S. suspended 24 percent of its tariffs, and China did the same. The remaining 10 percent of tariffs will be retained by both sides.
Fentanyl was not addressed in this round of talks—that will be part of future negotiations. In the meantime, the U.S. had imposed two rounds of 10 percent tariffs on products related to fentanyl. In response, starting February 10, China imposed tariffs on selected U.S. goods: 15 percent on coal and liquefied natural gas (LNG), and 10 percent on crude oil, agricultural machinery, large-engine vehicles, and pickup trucks. Then, beginning March 10, China imposed additional tariffs – 15 percent on chicken, wheat, corn, and cotton, and 10 percent on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products.
These targeted countermeasures focused precisely on Trump’s base of support – the so-called “red states.” Was this disproportionate? Not at all. It was a strategic and well-earned victory.
On April 2 – “Liberation Day” in the U.S. – Trump was at his most belligerent. But in Geneva, he was visibly subdued. During the White House press briefing for signing the executive order, he abruptly walked away without signing it – an uncharacteristic moment of disarray – only to return after being called back by staff.
Meanwhile, some voices on Chinese social media have complained that “failing to achieve total victory in one battle is equivalent to failure.” This perspective is naive. Anyone with a sound understanding of the Korean War or the strategy of protracted warfare can see the flaw in this argument.
There is also no shortage of misinformation – claims that China will eventually capitulate, make concessions, or backtrack. Ironically, such claims only further underscore China’s clear and significant stage victory, earned through firm resistance. The central lesson is simple: when facing U.S. tariff coercion, standing tall and fighting back is the only way to win.
The most humiliating position? Bowing and cowering in fear. Those who cave in under pressure will not only suffer economic losses but also compromise their national dignity.
On May 12, Hutchison Whampoa issued a statement declaring that it would not sell port assets under non-compliant conditions – a move widely interpreted as an acknowledgment that the sale was off the table. Why? Because certain parties always believed they had to cling to a “stronger leg.” In their minds, Western powers – especially the U.S. – represented strength. So, they sought to hold onto the thickest leg they could find. But reality has shown that Washington cannot easily strong-arm Beijing.
Similarly, in Taiwan, many now direct criticism at (President) Lai Ching-te. Among all major economies, Taiwan suffered the worst terms in this round of U.S. tariff negotiations. It gave up the most, gained the least, and incurred the greatest losses. Why? Because it was the fastest to submit, clinging to the unrealistic fantasy of “seeking independence through U.S. support.” This path is a dead end.
This episode sends a powerful message to the global community: Only by standing firm against the U.S. and refusing its unreasonable demands can nations hope to reach a fair and equitable resolution. Standing tall, demanding reciprocal dignity, and resisting U.S. tariff bullying is the only viable strategy. More countries should learn from China’s experience.
As for Trump, after signing the joint statement and the executive order, he was clearly frustrated. He quickly shifted his attention to the European Union, hoping to find a softer target. The next stages of this trade saga promise even more drama.
Of course, we must remain prepared – psychologically and practically. This (upcoming trade negotiation) process will not be smooth; twists and turns are inevitable. But we need not worry. As the Chinese saying goes, “When enemy soldiers come, we have generals to counter them; when floods arrive, we have earth to block them.”
Speaking realistically, will the current truce go as smoothly as some expect? Will everything be resolved within three months? That is unlikely. Let us watch closely how the next three months unfold. We will continue to monitor developments with great attention.
Endnote:
{1} Guancha.cn, “Yi’s Sharp Insight: The World Should Learn from China’s Example – Only by Standing Tall Can We Push Back Against the U.S.,” May 14, 2025.
https://www.guancha.cn/ShenYi/2025_05_14_775744.shtml.