Context:

Xi Jinping has long strategized to make the world reliant on China's exports and expertise, but this plan comes with significant costs for China itself. In response to the Trump administration's tariffs on Chinese goods, Xi Jinping aggressively sought to increase China's control over global supply chains, ensuring that foreign nations think twice before disrupting supplies to China. Over the years, China has bolstered its manufacturing base and introduced measures like export controls and antimonopoly laws to retaliate against American companies. This approach has led to a significant shift in global trade dynamics, with the United States and China engaged in a fierce competition that could divide the world into competing spheres of influence. While China aims for economic self-reliance and control, this strategy has also led to increased tensions with trading partners and internal economic challenges, raising questions about the sustainability of Xi's approach to becoming a global superpower.

Dive Deeper:

• Xi Jinping's strategy to make the world dependent on China's exports has been in the making for years, with a focus on establishing dominance in global supply chains. This plan was articulated during a 2020 meeting with senior Communist Party officials, where Xi emphasized the importance of making adversaries reliant on China for essential goods.

• The Trump administration's tariffs on Chinese goods provided an opportunity for Xi to go on the offensive, leveraging China's control over critical minerals and manufacturing capabilities to impose export restrictions and retaliate against American companies. This has increased pressure on the Trump administration as consumer prices rise and empty store shelves loom.

• China's economic strategy involves directing significant financial resources into industrial sectors and strategic industries, such as semiconductors and green technologies, to bolster its economic standing and challenge U.S. supremacy. However, this has also led to increased tensions with trading partners.

• The trade conflict has intensified the global rivalry between the United States and China, with both nations pushing other countries to align with their respective trade policies. This competition is particularly fierce over emerging technologies like artificial intelligence, which are seen as crucial for future economic dominance.

• While Xi Jinping's approach has strengthened China's position in certain industries, it has also resulted in economic challenges within China, including a property crisis and weakened consumer confidence. Analysts suggest that increased social welfare spending could help balance China's economy, but such reforms have not materialized.

• Xi's strategy of economic self-reliance and authoritarian control over the economy contrasts with earlier expectations that China would liberalize politically as it integrated with global markets. Instead, Xi has doubled down on state control, directing capital to state-owned enterprises and maintaining tight control over strategic industries.

• Despite China's ambitions, experts question whether Xi's aggressive stance against the United States is sustainable, as it has led to a deterioration of China's external environment and strained relationships with other nations. Some argue that a more cautious approach, in line with Deng Xiaoping's advice to 'hide your strength, bide your time,' might have been more prudent.