The trade dispute has surged, with the US raising tariffs on Chinese goods to 145%, triggering China’s retaliatory 84% tariffs on American imports, bans on Hollywood films, and restrictions on U.S. companies’ market access. These actions jeopardise trade between the world’s top economies, stoking global recession fears. While President Trump granted a 90-day tariff reprieve to other nations, the US-China rift deepens, with Trump awaiting Xi’s outreach for talks—a gesture Beijing has consistently declined.
Opting for diplomacy over direct US. negotiations, Xi is strengthening ties with alternative trade partners. His meeting with Sanchez, marking Spain’s third China visit in two years, highlights efforts to engage Europe amid economic turbulence. Next, Xi will visit Vietnam, Malaysia, and Cambodia—countries previously hit by Trump’s tariff plans—aiming to solidify regional alliances. These moves frame China as a dependable champion of global trade, contrasting with US unilateral actions.
Xi also signaled openness to the European Union, hailing it as a key global player and affirming China’s support. He called on the EU and Spain, which together represent over a third of global GDP, to resist “unilateral bullying”—a clear swipe at US policies—and defend international trade norms. Xi pledged deeper collaboration with Spain in areas like new energy, high-tech manufacturing, and smart cities, reinforcing China’s image as a stable partner.
As markets grapple with tariff-driven instability, Xi’s defiant stance underscores China’s strategy to weather the storm through internal focus and strategic global outreach. With no immediate resolution in sight, China appears committed to managing its affairs independently while expanding influence elsewhere, sidelining US talks for now. This approach reflects Xi’s broader vision of navigating a volatile world by prioritising resilience and multilateral cooperation over capitulation to trade pressures.
