China is considering various measures to respond to potential new trade policies from the Trump administration. It is believed that simple trade wars and reciprocal countermeasures may not be enough to address the complexities in China-US relations. Wang Wen, executive dean of Renmin University’s Chongyang Institute for Financial Studies, emphasizes the need for more strategic approaches as tensions escalate.
As a result, China may focus on US firms and strengthen its economic ties with countries like India and those in Africa. This shift could indicate a broader strategy to mitigate the impact of tariffs and trade restrictions imposed by the US, which could lead to a more challenging and unpredictable trade environment. The consequences of these actions could extend beyond bilateral relations, impacting global markets and trade dynamics.