CHINA AND TRUMP’S TRADE ESCALATION: EVALUATING RETALIATION, STRATEGIC ADAPTATION, AND COOPERATIVE PATHWAYS

Abstract

This study explores China’s strategic response to the renewed U.S.–China trade war under Donald Trump’s second term, analyzing whether Beijing pursued retaliation, adaptation, or cooperation. It examines the economic, diplomatic, and technological measures China adopted to counter U.S. tariffs and sanctions, alongside the broader geopolitical implications. Employing a qualitative research design, the study analyzes primary sources—including official Chinese statements, policy documents, and trade data—along with secondary materials such as expert analyses and scholarly publications. Thematic analysis reveals that while China responded with counter-tariffs and diplomatic opposition, it simultaneously adapted by diversifying trade networks, strengthening domestic industries, and expanding its global reach through initiatives like the Belt and Road. Moreover, selective cooperation persisted in areas such as climate change and global health. The findings suggest that sustainable U.S.–China relations will require a balanced strategy—combining competition management with constructive engagement. This research contributes to understanding evolving trade dynamics and shifting global power relations.