Why China Won’t Give In to Trump Amid Trade Tensions

“Seeking to negotiate on U.S. terms would be deeply embarrassing for Xi and could potentially weaken his standing and even control over the Communist Party and the country,” Steve Tsang, the director of the SOAS China Institute at the University of London, told me.

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Alade-Ọrọ̀ Crow

On Tuesday, President Donald Trump claimed that numerous foreign leaders were “kissing his ass” to evade the significant tariffs imposed on their nations. However, China’s leader, Xi Jinping, was not among them. Trump stated, “We are waiting for their call,” referring to China’s leadership in a recent social-media update.

He may be waiting for an extended period. Xi has risen to become China’s most formidable political figure in half a century by advocating for a new Chinese nationalism—not by bowing to any external pressure, especially not from the president of the United States.

“Negotiating on U.S. terms would be profoundly embarrassing for Xi and might undermine his authority and control over the Communist Party and the nation,” remarked Steve Tsang, director of the SOAS China Institute at the University of London. This is because the party legitimizes Xi’s rule by portraying him as the ultimate protector of the Chinese populace—the leader who will restore China’s former glory and achieve the “Chinese dream” of national rejuvenation. He must be seen as standing firm against foreign aggressors who aim to belittle China and obstruct its rightful ascendance.

“The Chinese people will never permit foreign forces to bully, oppress, or enslave us,” Xi asserted in a speech commemorating the centenary of the Communist Party in 2021. “Anyone who entertains delusions of doing so will crack their heads and spill blood on the Great Wall of steel.”

[Read: Trade will move on without the United States]

It’s no surprise, then, that Xi has been swift to retaliate against Trump while other leaders have held back. On April 2, Trump imposed an additional 34 percent duty on Chinese imports, prompting Xi to respond just two days later with a 34 percent tariff on U.S. imports. Trump then retaliated with another 50 percent duty, which Xi matched the following day. On Wednesday, Trump attempted to isolate Xi by pausing most tariffs on all countries for 90 days—except for China, for which he increased his duties yet again. On Friday, Beijing raised its tariffs on American imports once more.

As both nations exchanged blows, Xi’s government conveyed a calm determination. An op-ed in the People’s Daily, the official newspaper of the Chinese Communist Party, quoted Xi stating, “Maintaining composure, boosting confidence, and concentrating on performing our own tasks well are the keys to overcoming various risks and challenges.”

The Chinese Communist Party portrays Trump’s trade war as an American effort to contain and suppress China’s economic progress—one that the government is fully prepared to resist, according to a commentary in the People’s Daily. This narrative commits Beijing to enduring, as the alternative would be for a party that bases its power on the display of strength to seem to capitulate to a hostile attack.

Trump and his team appear oblivious to Xi’s political landscape. They seem to believe that if they maintain pressure, Xi will eventually yield. U.S. Treasury Secretary Scott Bessent claimed that Xi’s retaliation was “a big mistake.” Given that China exports significantly more to the U.S. than it imports, “they’re playing with a pair of twos,” he said.

He’s accurate about the risks involved. Chinese exports to the U.S. amounted to nearly $440 billion last year and are a crucial source of employment. The London-based research firm Capital Economics recently projected that those exports could plummet by more than half if Trump’s tariffs remain in place—a devastating blow that China’s fragile economy can scarcely sustain.

[Rogé Karma: The tariff damage that can’t be undone]

However, China holds leverage in this relationship as well. American consumers and businesses depend on Chinese imports. Xi has already curtailed exports of certain rare-earth metals, an industry in which China holds dominance. Recently, China’s regulators targeted Hollywood, declaring that they would reduce the number of American films approved for screening in Chinese theaters. Moreover, Trump faces pressure from financial markets (likely prompting the 90-day pause) and within his administration, as tensions over tariffs have erupted into public view between Elon Musk and White House adviser Peter Navarro.

Trump’s remarks imply he would prefer negotiations. “I think he’s going to want to get to a deal,” Trump remarked about Xi on Wednesday. “I think that’s going to happen. We’ll receive a phone call at some point, and it’ll be off to the races.”

In the end, Trump and Xi may find their way to the negotiating table. But this will only occur if Xi can project himself as at least Trump’s equal, if not the one in charge. Trump’s current approach does not facilitate this outcome. His tariff strategy seems to have devolved from a plan to revive American manufacturing into little more than a method of coercing concessions from U.S. trading partners—while allowing Trump to portray himself as a powerful leader who is being courted.

The leaders of both the United States and China, for their domestic political reasons, need to appear as the dominant force. The challenge is that only one can hold that title.

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