China's Xi Trying to Turn World Against US, Trump

President Xi Jinping’s diplomats are fanning out across the world with a clear message for countries cutting deals with Donald Trump: The US is a bully that can’t be trusted.

Chinese officials are racing to turn foreign governments against the US inside a 90-day window Trump has granted all nations — except China — to strike trade deals during a tariff reprieve. Once those pacts are in place, Treasury Secretary Scott Bessent has said he wants US allies to “approach China as a group,” giving his side more leverage in negotiations.

While US allies from South Korea to the European Union rely on Washington for security and have incentive to appease Trump economically, China is approaching the tariff battle on a more equal footing. Beijing has devoted years since Trump’s last trade war to weaning its economy off many US exports, and has the world’s largest military by number of active soldiers.

Xi has resisted getting on the phone with Trump and his government is demanding a removal of “reciprocal” tariffs, even as the US insists China take the first step in de-escalating. In doing so, Beijing is casting itself as a champion of the rules-based order and is calling on other countries to stand with China against the US.

“This is not just about China-US,” said Wu Xinbo, director at Fudan University’s Center for American Studies in Shanghai. “It is really about the international trade and economic system.”

Wu, who last year led a Foreign Ministry delegation to meet politicians in the US, said other governments should realize Beijing’s efforts have benefited them. “If China hadn’t stood up to the US, how would the US give them a 90-day pause,” he added, suggesting tariffs on China have given Trump cover to halt levies on other nations. “They should appreciate that.”

In Washington, central bank Governor Pan Gongsheng told economic chiefs last week the US had “severely violated” their legitimate rights and interests. China’s top diplomat Wang Yi rallied the BRICS bloc of nations at a Monday meeting in Brazil to join Beijing in resisting Trump’s demands. “If you choose to remain silent, compromise and retreat, it will only allow the bully to become more aggressive,” he said.

Hours later, China’s Foreign Ministry branded Washington an “imperialist” power in a video with English subtitles that claimed US moves to limit Japanese exports last century severely harmed companies like Toshiba. “Bowing to a bully is just like drinking poison to quench thirst, it only deepens the crisis,” it said. “China won’t back down so the voices of the weak will be heard.”

While many partners such as the EU are diametrically opposed to Trump’s tariffs, many will also be wary of moving closer to China. Beijing’s military aggression toward Taiwan and in the South China Sea, where it has territorial disputes, has caused alarm in the region, while Xi’s support for Vladimir Putin after his invasion of Ukraine has attracted fierce opposition in Europe.

Beijing also faces concern from other countries that a flood of cheap Chinese goods will be diverted from the US toward their markets. During a Group of Seven nations meeting last week, members agreed to encourage Beijing to address its domestic imbalances, according to Japan’s Finance Minister Katsunobu Kato.

Most countries are still working toward a US deal, even if they’re slow in reaching any consensus. India is perhaps making most progress, with officials hammering out an agreement that spans 19 categories and would give the US greater market access for farm goods, among other sectors.

Elizabeth Economy, Hargrove Senior Fellow at the Hoover Institution at Stanford University, discusses the fragile state of US-China relations and who will ultimately emerge victorious in what she calls a "game of chicken." Dr. Economy speaks with Tom Keene and Paul Sweeney on Bloomberg Radio.

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