China’s response to the US tariff war has been methodical and strategic, with preparations beginning eight years ago, according to Peng Sen, President of the China Society for Economic Reform. Speaking at the Summer Davos Forum, Peng emphasized that China’s countermeasures were not hasty reactions but part of a long-term strategy.
China has systematically reduced its reliance on single markets, with its foreign trade dependence on the US dropping from over 20 percent to approximately 12 percent. This diversification strategy has strengthened China’s economic resilience against external shocks.
China’s manufacturing sector has achieved remarkable scale, roughly twice the size of the US and four times that of Japan and Germany respectively. The quality and structure of Chinese manufacturing have also transformed significantly, moving beyond low-end products to high-value exports.
Notable achievements include 100 percent domestication of high-speed rail technology, over 50 percent global market share in both shipbuilding orders and industrial robot installations, and continuous improvement in semiconductor production capabilities.
Despite facing “chokepoint” challenges in high-end chip manufacturing, China views external restrictions as catalysts for industrial upgrading. Peng believes these limitations will accelerate China’s efforts to strengthen and complete its supply chains.
China’s manufacturing strategy focuses on three key areas: upgrading traditional industries, developing seven strategic emerging industries including next-generation information technology and new energy, and fostering future industries such as AI, quantum technology, and life sciences.
With its comprehensive manufacturing system, vast domestic market, and abundant labor resources, China demonstrates economic resilience and potential despite challenging external conditions.
Source: Central News Agency (Taiwan), June 30, 2025
https://www.cna.com.tw/news/acn/202506300090.aspx