China is poised for strategic responses to U.S. tariffs, leveraging concepts like ‘assassin’s mace’. Key strategies include export controls on critical minerals, advancements in AI technology, and diversification of its trade routes to reduce reliance on the U.S. These tactics could undermine America’s economic dominance and escalate global trade tensions, while promoting alternatives to dollar dependence among emerging economies.
China’s strategy, known as ‘assassin’s mace’, refers to its ability to counter a stronger opponent using asymmetrical tactics. Within the ongoing trade tensions, this concept is particularly pertinent as Beijing has a range of strategies that might undermine America’s industrial dominance in reaction to rising tariffs announced by Donald Trump. Although initial responses included modest tariffs, China has prepared more significant measures ahead of a potential trade war.
One of the key measures is the imposition of export controls on critical minerals vital for various U.S. industries, including technology and defense. These minerals, such as germanium and gallium, are essential in the production of semiconductor chips and other high-tech goods. By limiting exports, China has the potential to disrupt the supply chain significantly, leading to economic repercussions in the U.S., with projected losses of up to $3.1 billion for a full ban.
AI development, heavily reliant on semiconductor production, could also be affected by these restrictions. The emergence of a powerful AI model from China’s DeepSeek has raised concerns in Washington, indicating a growing competitive edge over U.S. technology. With both nations investing heavily in R&D, these tariffs may inadvertently empower China’s technological advancements, especially as it produced a significant portion of global scientific literature.
The U.S. is more entwined in its dependence on China than recognized, with indirect exposures almost four times higher than typical assessments. Recent Chinese tariffs on various U.S. products, including coal and agricultural machinery, highlight this interdependence and raise the risk of an escalating trade war impacting global economic growth and reinforcing inflation in the United States.
In response to the trade tensions, China is diversifying its trading partnerships. By fostering relations with other markets, it aims to lessen dependence on the U.S., thereby mitigating tariff impacts. Such strategies not only allow for greater economic independence but could also undermine Western market shares in Europe by flooding these markets with competitively priced Chinese goods.
Furthermore, Trump’s tariffs might push China and other BRICS nations to strengthen their financial systems, reducing dollar reliance. China is advancing local currency transactions with Brazil, enabling negotiations shielded from U.S. currency fluctuations. A collaborative financial system modeled after SWIFT could provide an alternative to U.S. financial sanctions, further eroding America’s economic dominance globally.
As China prepares its countermeasures against U.S. tariffs, it has several strategies including export controls on critical minerals, advancements in AI, leveraging interdependence in trade, and diversifying its markets. Each of these tactics represents a calculated response that could significantly impact U.S. economic stability, technological advancements, and global trade dynamics. The growing integration and collaboration among BRICS nations could further challenge U.S. economic supremacy.
Original Source: www.gbnews.com
