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Apr 3, 2025 4:52 pm
Global Media Network
US-China Trade War Enters New Phase
The ongoing trade tensions between the United States and China have taken a sharp turn, with experts saying that the current conflict is unlike any before. Analysts warn that both sides are entering a new kind of trade war, one that extends far beyond tariffs and into the fight for control over key technologies and global supply chains.
The latest flashpoint came earlier this month when China expanded its restrictions on rare-earth exports. The decision, announced on October 9, increased the number of elements requiring government approval for export. Beijing also introduced new rules that require foreign companies to obtain licenses to export magnets and semiconductor materials containing trace amounts of Chinese-sourced minerals or technology.
These rare-earth elements are vital for products such as electric vehicles, smartphones, defense systems, and computers. China dominates the global market for mining and refining these minerals, giving it a strong position in trade negotiations.
Experts see China’s move as a direct response to recent U.S. actions. Washington recently tightened its Entity List restrictions, blocking China’s access to advanced semiconductor chips. It also introduced new fees on China-linked shipping vessels to boost the U.S. shipbuilding industry and weaken China’s control of global trade routes. In return, Beijing imposed similar charges on U.S.-owned and operated ships.
According to Vina Nadjibulla of the Asia Pacific Foundation of Canada, both nations are now engaged in what she called an “information war,” blaming each other for harming global markets. She noted that China’s latest measures go beyond traditional trade tactics. “China is now applying these rules extraterritorially,” she said. “They are matching every U.S. escalation step for step.”
This escalation comes ahead of a planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit later this month in South Korea. Analysts believe China’s actions are designed to strengthen its leverage before the talks. Dexter Tiff Roberts of the Atlantic Council said Beijing feels that the balance of power has shifted. “China believes the leverage is on their side,” he said.
Roberts added that Trump’s inconsistent approach has created confusion. “The Trump administration is all over the place,” he said, pointing to multiple tariff threats and last-minute policy reversals. “They don’t seem to understand that China is willing to accept pain in the short term.”
According to Roberts, Trump remains eager for a major trade deal to showcase his deal-making skills, but Beijing sees this as an opportunity to extract more concessions. He noted that Trump’s changing statements about his planned meeting with Xi—first saying it would not happen, then confirming it two days later—added to the uncertainty.
Wei Liang, a professor of international trade at the Middlebury Institute of International Studies, said that Trump’s approach fits a pattern. She referred to a term coined earlier this year: “TACO,” meaning “Trump Always Chickens Out.” The phrase describes how Trump often announces tough tariffs but later delays or softens them. Liang said this inconsistency weakens U.S. negotiating power because it shows flexibility driven by stock market concerns.
While China faces its own economic challenges, including slowing growth and rising unemployment, experts believe Xi Jinping is using the trade dispute to rally domestic support. As China begins drafting its next five-year development plan, Xi can argue that U.S. tariffs are responsible for the country’s economic struggles.
Liang also noted that Beijing appears more willing than ever to distance itself from the U.S. economy. “China used to see decoupling as a lose-lose situation,” she said. “Now it sees it as a path to independence.” Over the past few years, China has diversified its export markets, expanding trade with countries involved in its Belt and Road Initiative.
Beijing has also reduced its reliance on U.S. goods such as soybeans and high-tech equipment by finding alternative suppliers or developing local substitutes. Meanwhile, China has introduced national security laws mirroring U.S. trade restrictions, including its own version of the Entity List to control technology exports.
Nadjibulla said that China’s preparation for long-term trade confrontation should serve as a warning for other nations. “This should be a wake-up call for everyone,” she said. “Countries need to diversify their supply chains because we are now seeing the full Chinese playbook.”
As both nations gear up for the Trump-Xi meeting, the trade war shows no sign of cooling. What began as a tariff dispute has evolved into a broader struggle over economic dominance, national security, and global influence. Experts agree that this “very different kind of trade war” could shape the global economy for years to come.
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