https://www.guancha.cn/ShenYi/2025_04_29_774052.shtml

by Dr. Shen Yi, Director of Center for BRICS Studies, FDDI, Fudan University

After Trump initiated unilateral trade bullying, something more "artistic" than the transaction has emerged...

Recently, the Sino-US trade friction is gradually entering a new stage: On one hand, from the US perspective, Trump continues to issue confusing and even false information, making all parties feel that behind所谓the art of the transaction lies chaos and ruthless behavior. Meanwhile, China has very clear strategic objectives.

The entire trade war is essentially unilateral bullying by the United States, which violates normal ways of interaction between nations as well as the basic rules of multilateral trade globally. Therefore, China must strongly counteract it. China clearly recognizes that from the targets chosen by the US to the policies used are all wrong and do not benefit America itself. Once we firmly resist and push back, under the influence of economic laws, the US will inevitably pay a higher price; its failure is destined.

After clarifying such strategic objectives, China needs to address how to achieve them through methods, strategies, and paths in order to effectively counteract and respond with as little cost as possible. Therefore, in recent days, what China has focused on doing is debunking false information, with the Ministry of Commerce and the Foreign Ministry issuing several statements within two days.

Facing this unilateral trade bullying by the US, today's China has formed a unified understanding across the country. When all people are united, they win. Everyone now shares a common recognition: facing such trade bullying from the US, retreat and compromise will not solve the problem; we should no longer use retreat and compromise to resolve it but instead respond directly.

We stand on the right side of history. What we do is in line with economic, trade, and financial laws. Then what's there to hesitate about? The South China Morning Post reported that large US importers like Walmart have asked Chinese suppliers to ship goods at original prices, with tariffs borne by American importers and consumers. Also, these companies have already issued price increase notices domestically.

Next, these enterprises are likely to take various measures to lobby for exemptions from the trade restrictions, which is essentially a substantive easing of tensions. For China, we need to maintain our firm and effective response strategies; stand on the right side of history, adhere to economic laws, do our own things well, and effectively respond to the pressure brought by US trade friction.

At the same time, we should work with other countries globally to build a better and more positive global trading environment. Through mutual support and exchange, let economic laws take effect.

Currently, there is also word spreading online about a new transshipment route: American orders go through Canada to the UK, then from the UK to Turkey, and finally to China. In recent times, China has promoted the construction of cross-border e-commerce trading platforms in nearly 15 border cities.

After the US cut off this most optimized trade path between China and America, direct trade between the two countries may be described as some form of decoupling. However, in reality, there are two situations that have emerged:

Firstly, certain products cannot be decoupled even under tariffs, meaning these products are essential for the U.S., regardless of how high prices rise, they still have urgent domestic demand and can be absorbed by American consumers; related companies will continue to import despite tariff pressures.

Secondly, a large number of transshipment trade routes have spontaneously emerged. Combined with China's 24-hour visa-free policy and departure tax refund policies, new trading routes are appearing.

No matter what tricks the US plays or how many false pieces of information it releases, no matter how many numbers Trump comes up with from his mouth, these trade data will not lie to us. They tell us that although China has been subjected to some pressure in this Sino-US trade friction, the corresponding pressures are continuously and effectively being sent back to America. The US consumer confidence index is steadily declining, and inflation risks are significantly increasing.

In response to Trump's extremely uncertain information, American domestic financial markets are slowly building a trading model that ensures relevant funds can systematically, comprehensively, efficiently, and stably withdraw from the capital market for re-arrangement.

Of course, the final phase of this confrontation or trial moment will come when the technical parameters related to US debt extension take effect, combined with rising prices in the U.S. domestic economy and emerging risks of economic recession at home. At that time, whether it's Trump, the Federal Reserve, or the world as a whole, we will witness an important moment.

From current trends, the American government has continuously made wrong responses to this decision, besides lying, releasing false information, and misleading people in its mind by repeatedly repeating所谓的"the art of trade" and extreme pressure. It has no substantive solutions at all.

After China first effectively, firmly, comprehensively, and systematically responded to US bullying, other countries are increasingly realizing the correctness of such actions and are willing to stand with China, continuously and effectively countering and fighting back against America's trade bullying strategies, together defending the multilateral order of global trade. This outcome will ultimately lead to a situation that gradually favors counteracting hegemony; we will all witness this historical process together.