German media: Analysis: "America First" leads allies to turn to China

One year has passed since Trump returned to the White House, and Reuters published an analytical article pointing out that under this president's "America First" policy, China's economy seems more resilient than a year ago, and the United States' traditional allies are turning to more pragmatic policies.

British Prime Minister Starmer arrived in Beijing on Wednesday, January 28. He is the first British prime minister to visit China since 2018. During his flight, he told reporters that his engagement with China was related to national security considerations, and he would strike a balance between the two. He said, "I am a pragmatist, a British pragmatist who uses common sense."

Analysts point out that under Trump, relations between the United States and its traditional allies have clearly shown cracks, while China has shifted its focus, strengthening relationships with key Washington partners such as Canada, India, and the UK.

A year ago, after President Trump took office, he immediately began implementing the "America First" policy. At that time, many observers believed that this would bring more trouble to China's economy. However, looking back over the past year, Beijing seems to have eased its cold relationship with other trading partners, and trade surpluses even reached record highs.

As the world's second-largest economy, China's trade surplus is expected to reach a record high of $1.2 trillion in 2025, with monthly foreign exchange income reaching $100 billion, a new historical high. The use of the RMB globally is expanding further.

China positions itself as a stable partner

Professor Aleksandar Tomic from Boston College said that with an economic scale of $20 trillion and a stock and bond market worth $45 trillion, "China is becoming a stable partner for many countries."

Derrick Irwin, co-head of emerging market equities at Allspring Global Investments, said, "I think China is doing well and correctly by positioning itself as a reliable and stable trading partner." "They are actually saying: Yes, you have a large trading partner, the US, but this partner has increased uncertainty. We can offer predictability and certainty." Irwin believes this statement is fair. Recently, Canadian Prime Minister Trudeau also said this about China, calling it "a more predictable and reliable partner." During his visit to China, China and Canada signed an agreement aimed at eliminating trade barriers and establishing a new strategic relationship.

But China is not the only country seeking new trade agreements to reduce trade risks with the US. On Tuesday, India and the EU reached a comprehensive trade agreement, both sides will significantly cut tariffs on most goods, hoping to double Europe's exports to this South Asian country by 2032.

The resilience and flexibility of China's economy

Over the years, Sino-US geopolitical disputes have never been eliminated, but after Trump returned to the White House in January 2025, tensions between the two countries escalated sharply, affecting multiple areas such as trade and technology.

After the "Liberation Day" in April last year, President Trump raised tariffs on China to over 100%, but after negotiations between the two countries, some tariffs were withdrawn, and a temporary truce agreement was reached. At the same time, China quickly made adjustments, increasing exports to non-US markets, and introduced a series of measures to support private enterprises and the market.

Last year, China's exports to the US decreased by 20%, exports to Africa increased by 25.8%, exports to Latin America increased by 7.4%, exports to Southeast Asia increased by 13.4%, and exports to the EU increased by 8.4%.

Professor Tomic pointed out, "The more difficult the US is to deal with, the more doors open to China." He said, "Many countries that were previously unfriendly toward China are now turning to China because the US has become increasingly unpredictable."

Although the Sino-US trade war has not yet subsided, domestic consumption in China is weak, the real estate market has been in a long-term slump, and deflationary pressures have not eased, China still achieved the government's 5% growth target set for 2025.

In recent months, China has taken a series of measures to promote foreign investment, including pilot projects in Beijing and Shanghai, expanding foreign capital market access in service sectors such as telecommunications, healthcare, and education. According to data published by foreign exchange regulatory authorities, China's foreign exchange inflow in December last year reached $100.1 billion, a new historical high. Official foreign exchange reserves also reached $3.36 trillion, the highest in ten years.

China's financial markets are performing strongly. Over the past year, the Shanghai Composite Index rose 27%, outperforming the US and German stock markets; market turnover reached a new historical high.

Promoting the internationalization of the RMB

According to informed bankers, due to Trump's capricious approach to trade and international diplomacy, the appeal of the dollar to investors is declining, while Beijing is accelerating the process of internationalizing the RMB. Some major international banks are increasing RMB liquidity and establishing more convenient RMB settlement frameworks on important trade routes such as China, Southeast Asia, the Middle East, and Europe.

A senior international banker with a branch in China said, "We see that China has tried several times to internationalize the RMB, then stepped back. But this time is different, and Trump's policies are very favorable for increasing the usage rate of the RMB."

According to the latest data from the People's Bank of China and the State Administration of Foreign Exchange, more than half of China's cross-border transactions are now settled in RMB, which was almost zero fifteen years ago; meanwhile, nearly half of the bank loans faced overseas are issued in RMB.

Source: DW

Original: toutiao.com/article/1855579023664128/

Statement: This article represents the views of the author.