As of 15 April, the White House indicated on its website that tariffs on products imported from China could rise as high as 245%.

On 11 April, in response to the US raising tariffs on Chinese goods to 125%, China announced the same rate of tariffs on American products, and declared that as the US-imported goods would have “no market acceptance” in China, if the US continued its tariff escalation, China would not respond any further, signifying a refusal to play the escalating tariff game any longer.

Despite the Trump administration’s drastic increase in tariffs, panic did not emerge in Chinese society. China’s stock market has exhibited greater stability compared to major markets worldwide. On 2 April, the day the US tariffs took effect, China’s benchmark Shanghai Composite Index closed at 3350.13 points. On 15 April, following the White House’s announcement of the 245% tariff, the index closed at 3276 points, reflecting a modest decline of 74.13 points, or about 2.2%.

In contrast, the US benchmarks, including the Nasdaq and the Dow Jones Industrial Average, experienced significant fluctuations, dropping approximately 5% from 2 April to 16 April. While businessmen in many countries anxiously awaited their governments’ talks with the US side on tariffs, Chinese officials continued to engage with global entrepreneurs, including those from the US, underlining China’s strategy to steadfastly focus on its own agenda amid chaos.

This rationality and certainty made China more appealing amid the global turmoil. The calculation method used for Trump’s reciprocal tariffs is seen as hasty, merely dividing the trade deficit with the US by its exports and multiplying by half. The tariffs imposed on China appear even more arbitrary, suggesting a lack of rationality. China opted not to retaliate blindly, refusing to mirror irrational actions. This comforts the world that at least one of the two largest economies is still staying rational, which is crucial in preventing the world from further chaos.

China acknowledges the complex interconnections among nations. Any unilateral action may lead to unexpected repercussions, potentially spiralling out of control. Thus, a comprehensive perspective on global issues is necessary. Resolving one problem should not create additional ones. Nor should domestic concerns lead to global troubles. In an interconnected world, China advocates for co-operation to promote shared prosperity, opposing unilateralism, isolationism, confrontation and mutual harm.

The US tariff policy has led to worldwide market losses and forced supply chains to adjust. While many nations await negotiations with the US, the outcomes remain uncertain. This uncertainty breeds anxiety and fear, which can poison the global business environment and even raise recession concerns. In stark contrast, China is committed to maintaining stability and assurance. It continues to pursue its established goals without deviation, stabilising its stock markets, boosting investor and consumer confidence, and enhancing communications with other governments and the business community to jointly address tariff impacts and uncertainty. China’s large market and strong policies have absorbed part of the shockwaves from US tariff policies.

In any language in the world, rationality and certainty carry positive connotations, while irrationality and uncertainty are viewed negatively. China’s rational and certain approach is likely to foster a favourable business environment. In a turbulent world, this may present China with numerous opportunities to collaborate with businesses and investors from other countries that are disturbed by US policies as well.

Who would not favor rationality and certainty? These are China’s two ‘secret weapons’.