Part 3/9:
Retaliation Capabilities: China has various retaliatory measures beyond tariffs, such as controlling rare earth minerals that are crucial for technology, effectively utilizing its monopoly over these resources.
Need for Cooperation: The shifting reliance dynamics indicate that the U.S. needs China more than it admits. China’s exports to the U.S. have decreased significantly, showcasing a strategic shift.
Moral Authority: The emotional and political repercussions of a trade war have allowed China to project moral high ground, asserting itself as a rational power in the face of American nationalism.
International Trade Networks: China has been diversifying its trade partnerships, mitigating risks associated with a trade war by accessing alternative markets.