Why Should We Care if China Gains Influence Because of U.S. Tariffs?

Mark Lambert, the recently retired head of the State Department’s China House, joins Jim and Ray to share his insights into the impacts of America’s radical new tariff policy from his extensive diplomatic career in Asia, including postings in China, Vietnam, Thailand, and Japan.

Lambert, having just returned from a trip to Beijing, provides a unique perspective on how Chinese officials and experts are reacting to the escalating trade tensions between the two countries.

His insights include:

- President Xi Jinping's recent diplomatic tour of Vietnam, Malaysia, and Cambodia indicates China's strategic move to contest U.S. influence in countries most affected by the tariffs

- The challenges in U.S.-China negotiations, particularly the disconnect in diplomatic approaches between President Trump's preference for direct leader-to-leader negotiations versus China's more conservative impulses

- Chinese confusion about what specifically the U.S. wants in trade negotiations

- The importance of firmly opposing China’s well-known harmful trade practices (technology theft, subsidized overcapacity) while not decoupling the entire U.S.-China economic relationship

- China's potential retaliatory measures, including restricting rare earth metals exports and reconsidering U.S. Treasury bond holdings

- The strategic value of U.S. alliances in the Indo-Pacific and concerns about how current trade policies might affect these relationships

- The fragility yet resilience of China's economic and political system, including its cultural capacity for "eating bitterness" during difficult times

- Lambert's surprising ease of travel to China as a private citizen, suggesting China's desire to encourage more American visitors despite tensions

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Our podcast is produced by Ian Ellis-Jones and IEJ Media (on X @ianellisjones or LinkedIn).

This podcast is sponsored by BowerGroupAsia, a strategic advisory firm that specializes in the Indo-Pacific.