Summary
Discover how Beijing's trade war strategy has shifted from restraint to decisive retaliation. Eroding trust from U.S. 'strategic decoupling' leads to cautious engagement and a focus on Global South partnerships.
Key points
Beijing’s approach to the trade war has shifted dramatically; where it once favoured restraint and dialogue in Trump’s first term, it now responds with decisive retaliation.
Washington’s drumbeat of ‘strategic decoupling’ has strained trust, leading Beijing to adopt a more guarded and hesitant stance toward engagement, lowering the odds of meaningful negotiation.
Facing multiple contingencies, Beijing will likely lean towards an all-weather strategy: calibrating domestic economic buffers, expanding Global South partnerships, and selectively engaging with U.S. allies—while deprioritizing deals with Washington.
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