China Positions Itself as Reliable Partner Amid Trump Threats

Amid escalating trade tensions, China positions itself as a reliable partner in global trade. This comes in light of recent tariff actions by the United States, under President Trump.

Canada’s Shift Towards China

In response to U.S. tariffs, Canada has moved closer to China by signing a trade agreement aimed at liberalizing agricultural goods and electric vehicle trade. This shift marks a significant change for Canada, a long-standing ally of the U.S.

The Impact of Tariffs on Global Trade

He, China’s Vice Premier, emphasized that global trade is facing unprecedented challenges due to tariffs and the ongoing trade war. “Tariffs and trade war have no winners,” he stated. He advocates for free trade and economic globalization, which he believes have supported rapid development in many countries, including China.

• Global trade system faces significant challenges.
• Call to maintain support for trade liberalization.
• Globalization acknowledged as an imperfect yet essential process.

China’s Economic Landscape

He addressed criticisms surrounding China’s economic model. Notably, China achieved a record trade surplus of nearly $1.2 trillion in 2025. This situation has raised concerns in Europe, particularly within the automotive industry, about potential challenges posed by Chinese exports.

He remarked, “China isn’t only seeking to export goods abroad but also aims to become the world’s market.” However, he noted a discrepancy: when China seeks to buy, other countries may hesitate to sell.

Domestic Demand and Economic Agenda

The U.S. has restricted the sale of advanced microchips to China, pushing Beijing to focus on boosting domestic demand, which He identifies as a key economic priority. Unfortunately, household consumption in China remains below 40 percent of GDP, contrasted with a global average exceeding 60 percent, as reported by the World Bank.

• Long-term trends show a decline in household consumption in China.
• Increased household income could reduce manufacturing surplus.
• Higher demand for foreign goods, especially European luxury items, is expected.

Opportunities for Global Businesses

He encouraged global businesses to tap into the expanding Chinese consumer market. He asserted, “Businesses from around the world should take advantage of the opportunities presented by our growing domestic demand.” He reaffirmed China’s commitment to further open its doors to international trade.