Today, Explained It’s China’s turn
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Apr 14, 2025 
Dimitri Sevastopoulou, a U.S.-China correspondent for the Financial Times, and Bill Bishop, writer of the Cynicism newsletter, dive into China's strategic positioning in the ongoing trade war. They discuss China's assertiveness and the implications for U.S.-China relations. The conversation touches on how China's narrative emphasizes resilience against external pressures, its reduced dependency on the U.S., and its ambitions in high-tech sectors. They also explore the chaos of tariff announcements and the resulting effects on global supply chains.
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China's Retaliation: Critical Minerals
- China retaliated against U.S. tariffs by limiting exports of critical minerals like rare earth elements.
- These materials are crucial for various products, from electric car batteries to weapons components, giving China significant leverage.
U.S. Focus on China
- The U.S. initially imposed tariffs on many countries but has primarily focused on China.
- This focus is partly due to market vulnerabilities and the limited capacity of U.S. agencies to negotiate with numerous countries simultaneously.
China's Resilience
- China believes it can withstand economic pain longer than the U.S.
- They see the U.S. bond market as a vulnerability and are more resilient now than in 2017.