US tariffs, China's response, and what SA can learn

WHEN US Treasury Secretary Scott Bessent claimed that China's economy could lose "five to 10 million jobs" due to new tariffs, the headline predictably grabbed global attention.

- KUBEN CHETTY

"The onus is on Beijing," he added, laying the blame for de-escalation squarely at China's doorstep. But such rhetoric, laced with provocation, ignores both the history and the present reality of US-China trade relations.

More crucially, for countries like South Africa watching this power play unfold, Bessent's remarks reveal not strength, but a strategic miscalculation: the assumption that China is cornered. The reality is quite different. China is not just enduring the storm it is actively transforming it into a catalyst for growth and global integration.

While Bessent frames tariffs as a hammer, China has chosen to wield them as a chisel, reshaping its domestic economy and diversifying its global footprint.

Recent reporting by China Daily reveals that in response to tariff escalation, Beijing is accelerating its pivot towards internal economic circulation and tech-driven industrial upgrades. In essence, it's turning external pressure into internal reform.