THE ongoing US-China trade war appears to have entered a critical phase, marked by growing calls for negotiation over confrontation.
Regional experts and economic strategists increasingly believe that the United States, under mounting domestic and international pressure, may soon pivot toward diplomacy with China rather than persisting with punitive tariffs.
Recent signs suggest that the Trump Administration’s aggressive tariff strategy is losing momentum, signalling a possible rhetorical retreat after weeks of escalatory actions.
With tariffs on Chinese goods soaring beyond 145%, the resulting uncertainty rocked global markets—yet hopes of a policy reversal offered temporary relief to financial systems worldwide, underlining the importance of economic cooperation for global stability.
Moreover, the US’ recent arbitrary imposition of tariffs has seriously attacked and damaged the legitimate rights and interests of other countries and severely undermined the rule’s-based multilateral governance system.
However, the Xi’s global shared prosperity, three initiatives (development, security and civilizational), diplomatic wisdom, openness, economic globalization, international cooperation and, notably, BRI, BRICS, SCO and further development of Global South and South-South cooperation have become new ideal platforms for revival of economies, communities and enterprise around the globe.
It seems that widening gap on various important policies, plans, global outreach tools and measures among within Trump’s cabinet, emerging dissident of corporate sectors, economic experts and prominent strategists has forced the US President Donald Trump to blink first for the reduction of US tariffs against China and negotiations.
Moreover, increasing risks of recession, high inflation, price hike, decline in ratios of FDIs, slowdown of revenues, acute short-age of essential food items and increase in unemployment and poverty has dynamited the utopian kingdom of King Trump.
On the other hand, China’s positive, principled stance in navigating global economic complexities was reinforced by two major events in Beijing on April 25—the 2025 National Trade Conflict Response Working Conference and a key Political Bureau meeting of the CPC Central Committee.
These gatherings underscored China’s resolve to counter external pressures through coordinated efforts by the government, private sector and stakeholders to safeguard economic, trade and industrial interests.
Amid intensifying geopolitical competition and fractured global trade rules, China opted for precision, pragmatism and policy coherence over retreat—advancing a holistic strategy to strengthen industrial security, stabilize supply chains and sustain high-quality foreign trade growth.
Furthermore, the trade conflict response conference brought together key government bodies, trade policy institutions and representatives from major industrial sectors and laid out a coordinated response mechanism to minimize disruptions from trade frictions.
Obviously, one key outcome was the establishment of a more robust early warning system for trade risks that would enable industries and enterprises to receive timely intelligence and policy support.
The writer appreciates the Chinese government acceleration of free trade agreement negotiations with emerging markets, optimization of export tax rebate policies and streamlining customs clearance procedures for safeguarding its economy, trade and domestic industries.
The Chinese policy makers pledging of increased financial and legal support to Chinese companies facing discriminatory trade practices abroad are the most appropriate policies in the current global situation.
The conference plans to further support cross-border e-commerce and bonded zone development, recognizing their roles as engines of trade diversification and platforms for small and medium-sized enterprises to reach global markets are timely, integrated having holistic and comprehensive orientations.
China’s trade conflict response signals a shift from reactive defense to proactive adjustment.
This approach is emblematic of the broader strategy of institutional opening up.
It sends a clear message: China remains committed to deepening integration with the global economy, even as it fortifies itself against unilateral pressures.
On the other hand, the Political Bureau meeting, chaired by Xi Jinping, general secretary of the CPC Central Committee, strengthened this strategic direction with a strong emphasis on securing the country’s industrial and supply chains.
It emphasized the dual importance of resilience and innovation with policies to support the reshoring and upgrading of critical industries.
The writer is of the view that enhancing the coordination between the central and local governments to prevent redundant construction and ensure efficient resource allocation should be immediately pursued and implemented in China.
The rollout of national-level industrial clusters in key regions such as the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area will hopefully act as stimulators of for technological diffusion and international collaboration.
Furthermore, the integration of digital technologies into trade logistics, via block chain, artificial intelligence and 5G-enabled infrastructure, as highlighted in the conference will further enhance China’s position in global value chains.
In summary, the writer recommends that the structural upgrading of the Chinese economy be further developed and implemented.
Qualitative industrial production should remain robust, along with consumer confidence and the services sector in 2025 and beyond.
The writer highlights that the two events collectively represent more than tactical responses to trade tensions; they are a reaffirmation of China’s strategic blueprint for long-term development through policy continuity, institutional innovation and international outreach.
Lastly, the Chinese economy is resilient, diversified and developed, enduring hardship; it is about transforming these challenges into opportunities through reform, openness and coordination.
As global uncertainties persist, such proactive governance and strategic foresight offer a roadmap not only for China’s continued ascent but also for the stability of the global economy at large.
—The writer is President, Pak-China Corridor of Knowledge, Executive Director, CSAIS, regional expert: China, CPEC & BRI. (mehmoodulhassankhan@yahoo.com)
