Published: 22:01, June 11, 2025
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Beijing has cards, contrary to US trade war logic
By Virginia Lee

US President Donald Trump’s claim that Ukraine has no cards in the geopolitical game may have been designed for dramatic flair, but applying the same notion to China over the trade war is not just inaccurate, it is absurd. The Trump administration’s tariffs, which are often used to frame China as vulnerable, assume that China is heavily reliant on access to the United States’ markets. However, the reality is that China holds multiple strategic levers that extend far beyond traditional trade metrics. These are not abstract concepts or speculative advantages, but demonstrable strengths that are already shifting global dynamics. The assumption that China is cornered reveals more about American insecurity than it does about Chinese weakness.

One of China’s most impressive strategic advantages is its near-total control over rare-earth elements, crucial for advanced electronics, electric vehicles, military equipment, and green technology. These minerals are not easily found or processed elsewhere. With China producing the majority of the world’s rare-earth output, Beijing enjoys an edge in the entire industrial world. No trade measure from Washington can undo it.

While American policymakers talk about innovation, China is already executing innovation at an unprecedented scale in the clean energy sector. The country dominates solar panel and battery production, manufactures most of the world’s wind turbines, and controls the majority of global refining for cobalt and lithium. This industrial strength, built through consistent investment, infrastructure coordination, and long-term vision, is reshaping the global energy landscape. China’s clean energy systems, bundled with logistics, financing, and technical support, are electrifying entire regions across Africa, Southeast Asia, and Latin America. For many developing countries, choosing Chinese technology is not about ideology; it is about survival and cost. Meanwhile, the US continues to weaken its clean technology sector because of political instability and shortsighted decision-making.

China’s progress in artificial intelligence is another area in which Washington’s narratives are increasingly separated from reality. Most global AI patent filings now originate in China. But more importantly, Chinese developers are applying AI to solve real-world problems in logistics, manufacturing, medicine and public administration, not just for elite users and commercial licensing. This approach not only spreads influence but also builds trust and reliance. Robotics, a critical extension of AI, further illustrates the shift. China is now producing industrial and service robots at a scale unmatched by the US. These robots are not theoretical models for research labs; they are deployed in warehouses, hospitals, factories and even schools, demonstrating the global impact of China’s technological advancements.

Biotechnology adds yet another layer to China’s position. While American biotechnology hubs, such as Boston and San Francisco, are experiencing layoffs and declining investment, Chinese firms are attracting billions from global investors and striking major deals with Western pharmaceutical companies. Biopharmaceutical giant AstraZeneca’s decision to invest billions of dollars in a new research and development center in Beijing is not an act of diplomacy; it is recognition of where business potential lies. China has become a hub for clinical trials, medical patents and drug manufacturing. It has more talent, faster regulatory approval systems, and an ability to move from research to market that the American system, with its cumbersome procedures, cannot match. Chinese-developed cancer drugs are already being acquired by US and European firms, not for charity, but because they work. This is not a future projection; it is the current reality.

In the field of fusion energy, a sector that holds the promise of limitless, carbon-free power, China is again out-investing and out-committing the US. While American research facilities struggle with budget constraints and bureaucratic delays, China is building larger and more advanced fusion centers, drawing on a growing pool of trained physicists and engineers. These efforts are not exploratory; they are strategic. US companies have already raised concerns about their designs being duplicated in China, and they acknowledge that the scale of Chinese investment is something venture capital alone cannot match. If fusion energy becomes viable, it will not be American firms that lead global development. It will be Chinese cities, Chinese power grids, and Chinese exports. This is not only about energy, but it is about future leadership in industrial capacity.

The Trump administration’s tariffs reveal a fundamental misunderstanding of China’s position. These measures assume that China is reliant on access to US markets, and that pressure from tariffs will force concessions. But the evidence tells a different story. China is not merely enduring these actions; it is adjusting, responding, and succeeding

Each of these strengths in rare earths, clean energy, AI, biotechnology, and fusion represents a powerful tool. But what makes them even more formidable is that they are not isolated. They strengthen each other. China’s clean energy infrastructure supports its AI data centers. Its AI tools accelerate biotechnology research and industrial automation. Its rare-earth advantage enables advanced technology manufacturing. This is not the result of short-term policy shifts or campaign slogans. It is the outcome of decades of planning, coordination and national commitment.

The Trump administration’s tariffs reveal a fundamental misunderstanding of China’s position. These measures assume that China is reliant on access to US markets, and that pressure from tariffs will force concessions. But the evidence tells a different story. China is not merely enduring these actions; it is adjusting, responding, and succeeding. Its economy is increasingly focused on the Global South, where it is forging new partnerships, developing new markets, and building alternative supply chains. The US, in contrast, is becoming increasingly isolated in its policies, emphasizing coercion rather than collaboration, and reacting rather than leading.

To claim that China has no cards is not only incorrect, it also displays a lack of understanding. China’s strengths are not hypothetical. They are already influencing industries, shaping government strategies and setting international standards. However, it’s important to note that maintaining these strategic strengths is not without its challenges. While Washington favors the rhetoric of confrontation, China continues to speak through production, delivery and infrastructure development. The international community is paying close attention, and it is not difficult to determine which model is more popular.

The author is a solicitor, a Guangdong-Hong Kong-Macao Greater Bay Area lawyer, and a China-appointed attesting officer.

The views do not necessarily reflect those of China Daily.