Trade conflicts erode US global leadership

The temporary de-escalation of China-US trade tensions can temporarily soothe the global market's nerves. The tariff conflict between the world's two largest economies serves no one's interests.

While the stated objective of the US administration's policy to impose high tariffs was to decrease the United States' trade deficit with China, the underlying motivations extend beyond economics to geopolitical considerations. Washington aims to impede China's global technological expansion.

In the face of the escalating trade war with the US, China has adopted an integrated stimulus policy to further stabilize the domestic economy and minimize the impact of US tariffs. For example, Chinese government spending in 2025 increased to more than 8 percent of GDP, compared to 6.6 percent in the previous year, in a move aimed at stimulating domestic demand and increasing productivity in key sectors. This policy reflects an integrated strategy to boost the domestic economy and reduce dependence on foreign markets, within the framework of expanding the national economy.