Despite the short-term shock to the global economy from US President Donald Trump’s tariffs, Beijing sees the trade war with the US as a powerful catalyst that could speed up China’s technological advancement and its integration with the domestic market.
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“In the long run, this may actually turn out to be a good thing for us,” according to an economic work official, who spoke on condition of anonymity because of the issue’s sensitivity.
“It compels us to strengthen our capacity to innovate and build hi-tech, it also acts as a forceful driver to push us to speed up building a fully integrated domestic economic circulation system,” the official said.
Beijing vowed to “fight until the end” after Trump launched a global trade war two weeks ago, with massive “reciprocal” tariffs that targeted all of the United States’ trading partners – allies and rivals alike – and hit Chinese imports the hardest.
China has matched each round of the tariffs imposed by Washington, slapping levies of 125 per cent on US imports. The Trump administration’s latest move was to raise duties on Chinese goods to 145 per cent, while introducing a 90-day pause for many other countries.
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As the world grapples with the uncertainty caused by Trump’s changeable tariff decisions, Beijing is better prepared, thanks to the shocks of the trade war that began in the US president’s first term.