China not blinking first in US trade war

The trade war this year between China and the United States started with a bang, a fast-and-furious escalation of tariffs to astronomical levels. In the ensuing months, both countries showed a willingness to pull back and not shut down trade between the world’s largest economies.

- DAISUKE WAKABAYASHI KEITH BRADSHER

But they have made little discernible progress in resolving their differences on trade. Last Monday, after a fourth round of talks, US Treasury Secretary Scott Bessent said the two sides would talk about trade again in about a month.

While other countries have scrambled to meet President Donald Trump's demands to strike deals for reduced tariffs, China has kept to its own timetable. The trade impasse with the United States has exacted a price — mainly from a sharp drop-off in exports to America.

Here is how Beijing is trying to avoid blinking first:

EXPORTS STILL HUMMING

China's exports to the United States are down about 15% so far this year. But that has not slowed its export machine.

The country’s trade surplus with the world came within a whisker of $1 trillion last year, as its exports exceeded its imports on a scale seldom seen except around the time of the two world wars. Despite US tariffs, this year’s surplus for China is on track to be even bigger.

This year, through August, China’s trade surplus widened to $785.8 billion from $612.6 billion a year ago. Its surplus with countries across Southeast Asia, Africa, Latin America and Europe has climbed rapidly. China’s electric vehicle brands are storming new markets in Europe and Southeast Asia, while sales of heavily discounted Chinese solar panels are booming in Africa.