S2E36: China's leverage on the trade war with US

Jul 24, 2025

23:48

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Ultimately, the outcome might depend on both sides’ threshold for pain.

Synopsis: Every fourth Friday of the month, The Straits Times will now analyse the hottest political and trending talking points, alternating between its Malaysia and China bureaus.

For July, host and deputy foreign editor Albert Wai connects with senior China correspondent Yew Lun Tian.

They take stock of the twists and turns in the tariff negotiations between Washington and Beijing.

Both sides have weaponised access to rare earths and advanced chips as well as the potential sale of short video app TikTok, among other issues, in a bid to gain leverage.

Ultimately, how the negotiations pan out may depend on how much pain both sides are prepared to endure.

On the horizon is talk about a possible visit by President Donald Trump to China and how this might play a decisive role for some sort of deal.

Highlights (click/tap above):

1:28 The twists and turns of US-China tariff negotiations

3:24 How Beijing has weaponised the access to rare earths

5:40 China can now buy Nvidia H20 AI chips again. What are the implications?

7:49 Nvidia CEO Jensen Huang makes waves in China

9:54 Can Americans be happy without Chinese goods?

12:41 How the sale of TikTok might be a bargaining chip

13:56 Transhipment taxes add a layer of uncertainty

17:59 What a grand bargain might look like

19:37 Who will win the trade war?