Daijiworld Media Network - Washington
Washington, Apr 12: As the United States and China raise tariffs to historic levels, former American diplomats have warned that Beijing is strategizing not to defeat Washington outright in the trade war, but to outlast it, while keeping US allies under pressure to realign their global trade priorities.
Daniel Russel, former assistant secretary of state for East Asian and Pacific affairs and now vice president for international security and diplomacy at the Asia Society Policy Institute (ASPI), said China's latest move signals a long-term game rather than a short-term clash. His remarks follow the US decision to raise tariffs on Chinese goods to a staggering 145 percent, met with Beijing's own hike of 125 percent on US imports, according to Yonhap news agency.
"By declaring it will 'ignore' future US tariff hikes, Beijing is not trying to win the trade war it's trying to outlast it and outmaneuver Trump," Russel observed. He emphasized that China’s goals go beyond trade focusing instead on cushioning its economy, expanding diplomatic influence, and nudging US allies toward economic diversification.
Beijing’s official response that it would ‘ignore’ further tariff escalations implies, Russel said, that China believes there is now virtually no market space left for US goods, rendering any further tariffs irrelevant.
Highlighting President Xi Jinping’s upcoming visits to Vietnam, Malaysia, and Cambodia, Russel said the outreach is part of Beijing’s broader effort to strengthen regional economic ties while Washington risks alienating partners with its aggressive trade stance.
ASPI vice president Wendy Cutler, also a former US trade negotiator, echoed similar sentiments, stating that China is ‘in for the long haul.’ She added, “Beijing has also admitted that it has reached the end point in retaliating with tariffs,” suggesting that China may turn to other, less visible tools in its economic arsenal if Washington escalates further.
“The steep tariffs now in place 145 percent for Chinese imports to the US and 125 percent for US imports to China virtually halt all goods trade between the two largest economies in the world,” Cutler said, adding that both nations will eventually be forced to re-engage diplomatically to manage rising tensions.
Meanwhile, The Wall Street Journal has reported that the Trump administration is attempting to negotiate "ad hoc" trade arrangements with over 70 countries, aiming for written economic commitments in place of formal trade agreements. Former US Ambassador to Japan, Sen. Bill Hagerty, was cited as saying these deals may fall short of comprehensive pacts but reflect the administration’s broader approach to bilateral trade management.
As the two economic giants dig in, the global trade community watches closely, bracing for ripple effects across international markets and alliances.