China Positions Itself as a Reliable Ally Amid Trump’s Threats

In recent developments, Canada has moved closer to China in response to U.S. President Trump’s aggressive tariff policies. This shift is significant for Canada, a nation known for its long-standing alliance with the United States. Last week, Canada signed a trade agreement aimed at liberalizing exchanges in agricultural goods and electric vehicles.

China’s Position Amid Global Trade Challenges

During a press conference, Chinese Vice Premier He Lifeng emphasized the importance of free trade and economic globalization. He stated, “Tariffs and trade war have no winners,” highlighting the pressing challenges confronting the global trade system.

The Call for Globalization

He urged nations to reject isolationist policies. According to him, globalization has played a crucial role in fostering rapid development in many countries, including China. He acknowledged that while globalization has its flaws, withdrawing into self-imposed isolation would be a misguided approach.

China’s Economic Landscape

• China recorded a trade surplus of nearly $1.2 trillion in 2025.
• The manufacturing sector in China has generated concerns in Europe, particularly in the automotive industry.

Vice Premier He clarified that China aspires to be more than just an exporter; it aims to be the world’s marketplace. Nevertheless, he noted a significant challenge: “When China wants to buy, other countries don’t want to sell.”

Trade Restrictions and Domestic Demand

The U.S. has enacted restrictions on the export of advanced microchips to China, which are vital for artificial intelligence development. In response, China is prioritizing domestic consumption as a key pillar of its economic strategy. Despite efforts, household consumption remains below 40% of GDP, which trails the global average of over 60%, as reported by the World Bank.

Opportunities for Global Businesses

He encouraged international businesses to tap into China’s growing domestic market. “We encourage businesses from around the world to seize the opportunities presented by our expanding domestic demand,” he stated. This sentiment underscores China’s commitment to opening its market more widely.

The shifting dynamics associate with trade agreements and economic policies signal a critical moment in international relations. As countries navigate these challenges, the role of China as a reliable ally appears to gain importance, especially for nations seeking alternatives to U.S.-centric trade practices.