US seeks global accord to curb China's economic influence
The US administration intends to use ongoing negotiations to persuade trade partners to limit their economic relations with China. According to information obtained by "The Wall Street Journal," the White House wants to compel over 70 countries to commit to isolating Beijing. In exchange for what?
The "Wall Street Journal" in Thursday's article presents the backdrop of the American administration's plans regarding China. Officials from Donald Trump's administration, led by US Treasury Secretary Scott Bessent, plan to use negotiations to demand that trade partners prevent China from shipping goods through their territories. The United States also wants to prevent Chinese companies from establishing themselves in third countries, which would allow them to avoid American tariffs. The US also aims to limit the purchase of cheap Chinese industrial products.
These actions aim to weaken China's economy and force Beijing into negotiations. This would facilitate talks between Trump and Chinese President Xi Jinping.
Trump himself suggested this strategy on Tuesday, speaking in an interview with Fox. He stated that he is considering forcing countries to choose between the US and China. He referred to Panama's decision not to renew its participation in China's global infrastructure programme for developing countries.
Uncertain future of US-China relations
Scott Bessent is promoting a broader strategy to isolate the Chinese economy, which has recently gained support among Trump's officials. Although debates continue over the scope and severity of American tariffs, officials largely seem to agree with Bessent's plan regarding China. It includes cutting China off from the American economy through tariffs, and potentially even removing Chinese stocks from American stock exchanges.
In a statement read by White House Press Secretary Karoline Leavitt during a Tuesday press briefing, Trump stated that the ball is in China's court.
China needs to make a deal with us, we don't have to make a deal with them. China wants what we have, what every country wants, what we have — the American consumer - Trump said.
This suggests that a trade agreement between the US and China is not imminent.
It is not clear whether the anti-China narrative has already been presented during negotiations with other countries, but the WSJ predicts that sooner or later the US will raise issues related to China in talks with partners.
The US attempts to sway countries to its side
The US Treasury Secretary is trying to expand his influence. He is expected to present a list of countries that he believes could soon reach agreements with the US, including Japan, Australia, South Korea, India, and the United Kingdom.
Meanwhile, China is conducting its own diplomacy. This week, Xi visited Vietnam – an important US trade partner affected by Trump's tariffs – and signed dozens of economic commitments with the government in Hanoi. However, as noted by Peter Harrell, former director for international economics at Joe Biden's National Security Council, China's ability to counteract US trade policy is limited. While the US remains a "huge net importer," China is reducing its imports from the rest of the world and focusing on self-sufficiency.
