Amid the escalating trade war between the United States and China, Chinese President Xi Jinping is reportedly facing a political dilemma, says China expert and political commentator Gordon Chang.
What Happened: Chang stated that Xi is in a difficult position where initiating a conversation with President Donald Trump about the trade war could lead to backlash from his fellow Communist Party leaders. “Xi Jinping has configured the Chinese political system so that only the most hostile answers are considered to be acceptable, which means he’s boxed himself in,” Chang explained at an interview with Fox Business on Thursday.
“China’s in a position where it can’t do what it absolutely needs to do,” the expert added.
Chang, who penned “Plan Red: China’s Project to Destroy America,” concurred with Treasury Secretary Scott Bessent’s opinion that China’s recent escalation in the trade war was a “loser” move.
On Wednesday, Bessent stated, “They are the surplus country….Their exports to the U.S. are five times our exports to China. They can raise their tariffs, but so what?”
China “doesn’t have any cards in this” game, Chang stated, implying that while China is “holding a pair of twos,” Trump has a “royal straight flush.”
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Why It Matters: Following Trump’s decision to raise tariffs against China to 104%, China retaliated by raising tariffs on U.S. imports from 34% to 84%. Trump responded with another tariff increase on Chinese imports the same day, taking the percentage to 125%. China’s 84% tariff came into effect on Thursday.
This move was followed by Trump’s sudden tariff spike, which triggered a sharp downgrade in China’s growth forecasts by Goldman Sachs, putting up to 20 million export-linked jobs at risk. The escalating trade war and its potential impact on China’s economy put President Xi Jinping in a precarious position.
Despite hiking the tariffs, President Trump is hopeful of negotiations with the Chinese President. “I think that we’ll end up working out something that’s very good for both countries”, Trump said in the cabinet meeting on Thursday.
Chang highlighted how China believes it can pressure or intimidate Trump into backing down. However, Trump responded firmly by announcing 125% tariffs, signaling that he won’t be intimidated and that it’s China who needs to back down.
However, some experts think otherwise. Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis told ABC News, “At the moment, Xi seems to be calculating that China can withstand the damage and that ultimately it’s the United States who will blink first.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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