NYT: China responds to Trump's tariffs via adaptation, leverage
3 Min Read
While Chinese exports to the US dropped by 15%, surging sales to Europe, Africa, and Southeast Asia have boosted China's global trade to record levels.
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Machines load containers onto the trucks at the Chongqing Railway Container Terminal Station, in southwest China's Chongqing Municipality on Tuesday, May 20, 2025. (AP Photo/Andy Wong)
The ongoing trade war between China and the United States has entered a complex phase where both nations navigate economic pressures while seeking strategic advantages. According to The New York Times' (NYT) analysis, China has demonstrated remarkable resilience in adapting to US tariffs, employing a multi-faceted approach that includes market diversification, economic leverage, and strategic patience.
While Chinese exports to the US have declined approximately 15% this year, Beijing has successfully redirected its trade flows to compensate for these losses. Rather than experiencing an overall export decline, China has achieved record-breaking trade performance globally.
Data through August reveals China's worldwide trade surplus grew to $785.8 billion, compared to $612.6 billion in the previous year. This growth stems from increased sales across Southeast Asia, Africa, Latin America, and Europe.
NYT notes that Chinese electric vehicles are gaining significant market share in European and Southeast Asian markets, while discounted solar panels from China are experiencing strong demand across Africa.
This diversification strategy reflects years of preparation, with China having invested extensively in global infrastructure development over the past decade. These investments have created economic partnerships that now serve as alternative markets when US trade faces restrictions.
Strategic use of economic leverage
NYT's report reveals how China has demonstrated its own capacity to inflict economic pressure on the United States. In April, following intensified US tariffs, Beijing suspended rare earth metal and magnet exports to America. This action highlighted American dependence on Chinese-controlled resources, as China produces approximately 80% of global rare earth magnets and processes nearly all critical minerals used in heat-resistant magnet production.
These materials are essential for manufacturing automobiles, drones, industrial robots, and military equipment. While China resumed rare earth shipments in June during trade negotiations, some American companies continue experiencing supply difficulties.
China has extended similar pressure tactics to European markets, restricting rare earth magnet access to encourage EU abandonment of electric vehicle tariffs on Chinese products.
Agricultural trade as a pressure point
China has recently begun boycotting US soybean purchases, targeting a sector where Chinese demand is particularly significant. As the purchaser of roughly 60% of global soybean production, China's buying decisions directly impact American agricultural communities, particularly Midwest farmers.
This agricultural leverage demonstrates Beijing's willingness to use its massive consumer market as a negotiation tool, creating economic consequences in politically significant regions of the United States.
Measured confrontation
According to NYT, both nations have shown restraint in avoiding a complete trade shutdown despite escalating tensions. While China faces a minimum of 30% tariffs on exports to the US (with actual rates often higher due to additional duties), it has avoided the steepest threatened tariffs that reached 145% at one point.
The measured approach by both sides suggests recognition of mutual economic dependence, even as each seeks advantages in ongoing negotiations. Treasury Secretary Scott Bessent's announcement of continued talks in approximately one month indicates diplomatic channels remain active.
China's strategy appears focused on demonstrating economic resilience while maintaining leverage through resource control and market access, showing it can withstand trade pressures while imposing costs on American interests when necessary.
