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Ningrong Liu

As the world eagerly awaits a Xi-Trump meeting that could signal a potential resolution to the long-lasting US-China tariff war, Beijing has introduced its strictest export controls yet on rare earth elements and the related production technology. The announcement took US President Donald Trump by surprise; he decided to raise tariffs on Chinese goods by a further 100 per cent.
From the start of this tariff war, Beijing has shown an ability for long-term strategy, positioning itself for a showdown. China’s “delay strategy” is a carefully calculated effort based on patience, economic leverage and a commitment to what it deems fair.
With the United States tightening control over artificial intelligence (AI) technology and semiconductor production, rare earth elements have become a crucial leverage point for Beijing. Moreover, China is also one of the largest markets for US agricultural exports.
More significantly, given that Trump aims for a decisive victory in the tariff war to secure the midterm elections next year, China’s strategy gives it an advantageous position in the final negotiations. This is a strategy Trump seems reluctant to acknowledge, ignoring China’s ability to protect its interests.
When the Trump administration started the tariff war, it tested not only China’s economy but also its strategic foresight. What followed was not a reckless escalation but a calibrated response: a combination of firm resistance, targeted countermeasures and deliberate delay, which showed China’s refusal to be bullied while keeping the door open. This approach is not about “winning” a trade war; it is about defending economic sovereignty and laying the foundation for long-term stability.
First, China responded to Trump’s aggression with unwavering resolve – and it worked. While other nations might have yielded to the tariff hikes, China stood firm: it matched US tariffs and made clear that no amount of pressure would force it to compromise on its core interests.


This was not stubborn intransigence; it was a necessary deterrent. By refusing to back down, China made Trump flinch – a shift that even the Chinese delegation to the Geneva trade talks in May found surprising, as they were reportedly caught off guard when the US offered to dramatically reduce its tariffs.
From the onset of the trade war, Beijing had a clear strategy to weaken Trump’s position. While the US announced port fees on Chinese-built or operated vessels in April, China waited until this month to reveal its punitive fees on US-linked vessels, sending a clear message that US actions have consequences. These moves were not escalatory; they were defensive, ensuring the US could not impose pain without feeling it too.
Second, China is giving the US a taste of its own medicine. Its targeted countermeasures mirror the moves the US has repeatedly made against it, hitting back where it matters but without overstepping. For instance, despite ongoing trade negotiations, the US has continued to expand its trade blacklist to suppress Chinese hi-tech firms; in response, China has added US firms to its unreliable entity list.
The US has also moved to restrict other countries’ exports of US chips and technology to China in a bid to maintain its competitive edge in the AI war. China’s tit-for-tat, the latest export controls on rare earths and related technologies, displays the same “long-arm jurisdiction” controls the US uses to target China. According to a US Geological Survey report, the US relies on China for 70 per cent of its rare earth imports. It is estimated that rebuilding this supply chain would require at least 10 years.
After a newly elected Trump slapped tariffs on Chinese goods, China began to suspend its purchases of US farm goods, notably soybeans. Trump’s election victory was due in large part to the support of swing states and rural voters. China’s countermeasure recognises that US agricultural exports are a political bargaining chip for Trump and serves as a reminder to Washington that the interests of rural voters are not immune to the costs of the tariff war.

Third, China’s “delay strategy” is a masterful display of strategic timing – not obstruction. While Trump rushed to claim the “upper hand” by raising tariffs, China refused to be pressured into a bad deal. This patience was not about prolonging the conflict; it was about creating the conditions for fairness.
It recognised a key political reality: Trump’s midterm election ambitions depend on delivering results for rural voters. During Trump’s first term, when he initiated a trade war with China, US farm bankruptcies surged. This time, the White House is reportedly considering a bailout of at least US$10 billion for struggling US farmers who have lost a major customer in China.
Perhaps most tellingly, China last month said it would forgo “developing country” privileges at the World Trade Organization. By voluntarily giving this up, China takes the moral high ground: WTO director general Ngozi Okonjo-Iweala praised this decision as a crucial moment for the WTO. It removes a major obstacle to WTO reform while positioning China to shape new global trading rules. This choice emphasised the core of China’s approach: it seeks a deal that is sustainable.
In the end, China’s tariff war strategy reflects its broader approach to global engagement: principled, pragmatic and focused on long-term stability. It does not seek conflict while refusing to be victimised by it. In this struggle, patience and resolve have proven to be China’s most powerful weapons.
Both China and the US must navigate the complexities of this conflict with the understanding that the stakes are not just about immediate economic interests but also have implications for global trade stability.


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Beijing has stood firm, retaliated with the same measures used against China and masterfully delayed its countermeasures to maximise impact


Beijing has stood firm, retaliated with the same measures used against China and masterfully delayed its countermeasures to maximise impact.


US-China trade war

US-China trade war: All stories

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Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


China’s counter-attacks are giving Trump a taste of his own medicine

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Beijing has stood firm, retaliated with the same measures used against China and masterfully delayed its countermeasures to maximise impact

Beijing has stood firm, retaliated with the same measures used against China and masterfully delayed its countermeasures to maximise impact