How China unlinked economy from West

President Donald Trump has used tariffs to try to reduce American reliance on Chinese exports and prevent China's factory overcapacity from swamping the US economy. But his effort has hit an obstacle: Beijing was already well on its way to weaning its economy from the United States.

- KEITH BRADSHER

President Trump with China's president, Xi Jinping, in South Korea last month. China is able to pressure the US economy, while making it harder for Washington to block Beijing.

(NYT)

For two decades, China has systematically pursued economic self-reliance. China has been able to establish choke points to pressure the US economy, while making it harder for Washington to block China.

Self-reliance has been a cornerstone of Chinese policymaking not just under Xi Jinping, the country's top leader since 2012, but also under his predecessor, Hu Jintao.

Their programme of replacing imported manufactured goods with domestic production has been costly and often inefficient. But it has left the West with dwindling leverage it can deploy during disputes.

China’s leaders have become increasingly public about emphasising the self-reliance drive. It took a prominent place at an annual gathering of the Communist Party's Central Committee last month, when the country’s top officials laid out a sketch of China’s next five-year plan.

"We must first and foremost intensify efforts towards achieving greater self-reliance and strength in science and technology," Mr Xi said in a speech.

This year, China has wielded one of its most powerful choke points — its almost complete control over the world’s supply of rare-earth metals and rare-earth magnets.

Faced with restrictions on China's supply of rare earths, Trump last week accepted a compromise with Mr Xi.

Their agreement left this year’s new US tariffs for China similar to those for countries in Southeast Asia and lower than the tariffs for countries like India and Brazil, with which the United States has traditionally maintained closer relations.