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WSJ: Trump Is Preparing Powerful Blow To Chinese Economy

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WSJ: Trump Is Preparing Powerful Blow To Chinese Economy
DONALD TRUMP
PHOTO: GETTY IMAGES

The consequences will even affect Moscow.

If the world joins the US anti-Chinese plan, then the Russian economy as an appendage of Beijing will be under a double blow.

The Donald Trump administration has begun a new phase of pressure on China: the US intends to use tariff negotiations with more than 70 countries to achieve international isolation of the Chinese economy. This is a policy of economic impact that threatens not only Beijing, but also its allies, primarily Moscow.

If the plan works, not only Beijing will suffer, but also the global economy, oil will become cheaper, and Russia, whose raw materials economy depends on China, will fall into a new economic tailspin.

The plan is to isolate China with the hands of US allies

According to The Wall Street Journal, the Trump administration is developing a global strategy of economic pressure on China. The goal is to get US trading partners to make strict commitments to refrain from cooperating with Beijing in exchange for lower tariffs from the US.

American negotiators are already discussing this with dozens of countries, offering favorable terms if they agree not to allow China to bypass sanctions, not to accept Chinese companies on their territory, not to buy cheap Chinese products, and not to allow China to trade through third countries.

The author of the idea is the US Secretary of the Treasury

One of the ideologists of this economic offensive was the Secretary of the Treasury Scott Bessent, a close ally of Trump. It was he who proposed using the “tariff pause” as a lever: all countries except China received a temporary exemption from new duties, while China remained under pressure.

The idea is simple: isolate Beijing, weaken its position before possible negotiations between Trump and Xi Jinping and force China to bargain with much fewer opportunities.

China is Russia's main ally and breadwinner

This US maneuver is a direct blow to Russian interests. China is the Kremlin's main economic partner, with whom Russia trades raw materials, gas, oil, and buys sanctioned goods. If the Chinese economy weakens, Russia's income will also collapse.

Moreover, cheap Chinese industry provides the Kremlin with a “pseudo-rear entry” into the global economy. If the US blocks this path, Russia will find itself in even greater isolation — economically and technologically.

A trade war could hit the entire world

This plan poses a risk not only to China and Russia, but also to the global economy. Large-scale isolation of the world's second-largest producer could slow growth, collapse supply chains, and cause a drop in oil prices, which would again hit Russia.

The Trump administration is even discussing delisting Chinese companies from American exchanges, which could trigger a wave of financial turbulence.

While the US strategy on China remains in development, one thing is already clear: Washington is ready to go all the way. And if the world really does join the new anti-Chinese axis, the Russian economy as an appendage of Beijing will find itself under a double blow.

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