In the ongoing economic standoff between the world’s two biggest powers, China may have just played a masterstroke. While former U.S. President Donald Trump launched a full-fledged trade war during his administration, hoping to corner Beijing with tariffs and sanctions, Xi Jinping held something back — a powerful economic card that’s now turning the game in China’s favor.
China’s Strategic Patience Pays Off
Rather than reacting impulsively to Trump’s aggressive trade measures, Xi chose to wait. China didn’t just retaliate tit-for-tat. Instead, Xi and his advisors focused on something deeper — building resilience within China’s economy while simultaneously exploiting U.S. weaknesses.
Over the years, Beijing invested heavily in alternative trade routes, critical technologies, and self-reliance policies. While Trump aimed to weaken Chinese exports, Xi boosted China’s domestic markets and deepened ties with other global players, notably through the Belt and Road Initiative and RCEP (Regional Comprehensive Economic Partnership) — the world’s largest trade pact.
Rare Earths: Xi’s Hidden Trump Card
Behind the scenes, Xi quietly fortified control over something the U.S. desperately needs — rare earth elements. These minerals are essential for smartphones, electric vehicles, defense systems, and advanced weaponry. And guess what? China controls over 60% of the global supply.
This gives Xi massive leverage. While Trump focused on steel and soybean tariffs, Beijing quietly tightened export controls on rare earths. One hint of a supply disruption from China sends shockwaves through Wall Street and the Pentagon alike.
Yuan Diplomacy and Currency Strategy
Another strategic move by Xi is currency manipulation — but not in the way Trump warned. By carefully managing the yuan’s value, China has maintained export competitiveness even under heavy U.S. tariffs. A weaker yuan offsets American duties and keeps Chinese goods affordable globally.
Meanwhile, Xi also promoted the internationalization of the yuan, aiming to reduce global dependency on the U.S. dollar. Several countries have already signed up for trade deals that bypass the greenback, including oil-rich nations and key Asian economies. That’s not just economics — that’s a global power play.
Global Alliances While Trump Alienated Allies
While Trump pulled the U.S. out of major international pacts and sparred with allies, Xi did the opposite. China presented itself as a champion of globalization and multilateralism. This allowed Xi to fill the leadership vacuum Trump left behind, especially in regions like Africa, Latin America, and Southeast Asia.
Final Blow? China’s Green Energy Surge
Trump pushed for coal and oil, while Xi surged ahead with renewable energy dominance. Today, China is the largest producer of solar panels, EV batteries, and wind energy tech. That means the future of global energy is tied — in many ways — to China.
Conclusion: Checkmate or Just Round One?
As Trump gears up for another political run and once again targets China as his favorite punching bag, Xi Jinping sits with a full deck. From rare earth control to global trade alliances, green tech leadership to yuan diplomacy — China isn’t just surviving the trade war. It might be winning it.