Core Viewpoint - The article discusses the escalating trade tensions between the United States and China, highlighting China's strategic responses to U.S. tariff increases and its ability to leverage various advantages in the trade conflict [1][3]. Group 1: U.S. Tariff Actions - In April 2025, the U.S. unilaterally imposed a 34% "reciprocal tariff," which was quickly raised to 145%, aiming to replicate its previous negotiation tactics with other countries [1] - U.S. Treasury Secretary Bessent expressed surprise at China's willingness to confront the U.S. directly, indicating a shift in the expected dynamics of trade negotiations [3] Group 2: China's Strategic Advantages - China has diversified its trade network, reducing reliance on the U.S. market, with imports and exports to Belt and Road Initiative countries growing by 6.2% in the first three quarters of 2025, accounting for 51.7% of total trade [5] - The resilience of China's domestic market, supported by a population of 1.4 billion and a growing middle class, serves as a stabilizing factor against external shocks [5] - China's policy adaptability and efficient institutional advantages allow for quick responses to U.S. tariffs, such as initiating domestic shipbuilding upgrades after U.S. tariffs on the industry [5][11] Group 3: Control Over Critical Resources - China holds a dominant position in the rare earth industry, controlling 69% of global refining capacity and over 90% of advanced processing capacity, which is crucial for U.S. high-tech and military applications [7] - The recent inclusion of synthetic diamonds in China's export control list has raised concerns in the global semiconductor industry, as China produces 95% of industrial-grade diamonds essential for precision manufacturing [9][11] Group 4: U.S. Strategic Miscalculations - The U.S. has historically used tariffs as a tool to pressure other nations, but the backlash from American manufacturers indicates that such strategies may be self-defeating, leading to increased costs and job losses domestically [15] - The U.S. is perceived as unreliable in trade negotiations, often reversing commitments, which undermines its credibility and complicates future discussions [16][18] - China's understanding of U.S. strategic anxieties and its own response strategies—avoiding provocation while standing firm—demonstrates a shift in the balance of power in trade relations [18]