As China weather trade war with Trump

This year, the Trade War began with a bang between China and the United States, which is a quick and evoking escalating of tariffs to an astronomical level. In the coming months, both countries showed the willing land to pull away and close trading with large world economies.

But they have achieved little recognizable progress in solving their difference in the store. On Monday, after the fourth round of interviews, US Finance Minister Scott Bessnt said that both parties would talk about the store again in about a month.

While other countries tried to satisfy President Donald Trump’s demand to close shops for reduced tariffs, China kept on its own. The business dead end with the United States is exactly the price of a sharp decrease in exports to America. Here is how Beijing attempts the weather and at the same time does what it can to prevent blinking first.

Chinese exports to the US

Chinese exports to the United States have so far dropped by 15%. But it did not slow down his export machine.

Last year, the country’s trade surplus fell into the beard of $ 1 trillion, because its imports rarely see the exception of the time of the two world wars on the scale. Despite American tariffs, this year’s surplus for China on the good way is to be even greater.

This year, until August, the Chinese trade surplus has expanded to $ 785.8 billion from $ 612.6 billion a year ago. Its surplus with the ground in Southeast Asia, Africa, Latin America and Europe quickly climbed. Chinese brands of electric vehicles in Europe and Southeast Asia, while the sale of heavily discoured Chinese solar panels in Africa flourishes. Some of the surplus that China exports to other rural windows in the United States, although Trump’s administration promises to intervene this business. China has been warned by the steepest tariffs endangered by Trump – up to 145% at one point. However, goods from Chinese manufacturers are still subject to a minimum tax of 30%, among other countries, which shifts the actual rate to many Chinese imports significantly higher.

For China, her strategy has been in production years. It has been invested in the infrastructure building throughout the developing world for more than ten years. China has helped to establish economic ties and influence in regions that are becoming increasingly important because they are trying to redirect trade from the United States to the rest of the world.

By continuing to sell multiple goods Otverseas, China was able to maintain its economic growth. This is not only granted by the export itself, but a significant investment in the new factory for the production of goods for sale abroad.

China is trying to keep the lid on its economic weaknesses at home

Chinese export increase in masking weakness in other parts of its economy. The persistent property caused confusion in the economy. Consumers spend less, while unemployment among young people remains the main problem. China also deals with a stubborn deflationary spiral, an overproduction in key sectors and price wars. Politics creators have taken steps to strengthen their domestic Elon, but the results are still mixed.

Although it could grow the press to become requirements for us, the ability of China to control the media firmly and the Internet allowed him to prevent the fucking conversation of the tolls caused by the trade war.

On Monday, China and the Anthdede that retail spending and production production in August did not reach the expectations of economists, indicated that economic activity was slow. The pillar also suggests that Beijing’s efforts to stimulate economic low interest rates, consuming the rules for Homebuying and subsidies for consumables -if it wants to intervene its annual economic growth objective of 5%.

China finds points of lever effect

In any negotiation, both parts must understand what is at stake. For China, the United States remains the largest and most amazing market for consumers. Her companies risk losing customers in America for tariffs.

Over the past few months, however, China has explained what the US risks have been playing with a hard ball with Beijing. In April, shortly after Trump put heavy tariffs in China, China was a retaliation of the export of metals and rare soil magnets to the United States.

Magnets are necessary to build everything from cars and drones to the production of robots and missiles. China produces about 80% of the world’s rare soil magnets and improves almost 100% of critical minerals that increase more resistant magnets to heat.

In June, China agreed to restore shipments of rare countries within business negotiations, but some American companies continue to have difficulty in obtaining adequate supplies. European manufacturers also had a failure providing enough rare soil magnets because Beijing was pushing the European Union to leave the tariffs on electric cars from China. Beijing’s message was delivered: China was also meaningful and is not afraid to use it.

More recently, China bends the muscles by boycotting the purchase of soybeans from the United States. China buys about 60% of the world’s soybeans, making it a necessary customer for American soy farmers. By stopping shopping, China has shown its displeasure for Trump’s tariffs by causing bread on farmers on the US Midwest.

This article originally appears in the New York Times.