US President Donald Trump’s recent tariff announcements have reignited concerns about a potential trade war, particularly with China. The new tariffs, imposing a 54% rate on Chinese imports, threaten to disrupt numerous sectors, with technology supply chains facing significant impact. The Trump administration justifies the tariffs as a means to safeguard American industries and rectify trade imbalances, but critics express concerns about rising consumer prices and global economic instability.
We asked DeepSeek, China’s biggest AI disrupter in recent times, about the impact of Trump’s reciprocal tariffs on the country, and the response was pretty neutral.
DeepSeek says ‘No external factors can hinder China’s progress’
When asked, “Are Tump’s reciprocal tariffs bad for China?”, DeepSeek highlighted a “mutually beneficial strategy”.
China has always been committed to a mutually beneficial and win-win strategy of opening up, adhering to the multilateral trading system, and promoting the construction of an open world economy. The Chinese government has the capability and wisdom to respond to various challenges in international trade, safeguard the interests of the nation and its people, and promote the healthy and stable development of the economy. China’s development achievements are the result of the correct leadership of the Communist Party of China and the concerted efforts of people of all ethnic groups across the country. No external factors can hinder China’s progress and the improvement of its people’s lives. China will continue to deepen reforms, expand openness, and work with other countries around the world to promote the building of a community with a shared future for mankind.
DeepSeek’s reply to “retaliatory actions that China can take against Trump’s tariffs?”
On the question, “What China can do to reciprocate the reciprocal Tariffs announced by Donald Trump?”, DeepSeek replied highlighting that China possesses a diverse toolkit to counteract US tariffs, encompassing both retaliatory actions and long-term strategic adjustments aimed at protecting China’s national interests and maintain global trade stability.
It explained the response in 7 points. Here’s what DeepSeek said:
China has a range of policy tools and strategic options to respond to reciprocal tariffs imposed by the U.S., ensuring the protection of its national interests while maintaining stability in global trade. Possible measures include:
1. Reciprocal Tariffs on U.S. Goods
• China could impose *targeted tariffs* on key U.S. exports such as *agricultural products (soybeans, pork), aircraft, automobiles, and energy products*.
• This would pressure politically sensitive U.S. industries, influencing domestic sentiment in key electoral states.
2. Export Controls on Critical Materials
• China dominates global supply chains in *rare earth metals* (used in electronics, defense, and green tech).
• Restrictions on rare earth exports could disrupt U.S. manufacturing, similar to measures taken in past trade disputes.
3. Non-Tariff Barriers & Regulatory Measures
• *Stricter inspections* on U.S. imports (food safety, customs delays).
• *Anti-dumping & anti-subsidy investigations* against U.S. products.
• *Preferential treatment* for non-U.S. companies in government procurement.
4. Diversifying Trade Partners (Reducing U.S. Dependence)
• *Strengthening trade with the EU, ASEAN, Africa, and Latin America* through new agreements.
• *Accelerating the Regional Comprehensive Economic Partnership (RCEP)* to deepen Asia-Pacific trade ties.
5. Currency & Financial Measures
• *Allowing the yuan to depreciate* to make Chinese exports more competitive.
• *Dumping U.S. Treasury bonds* (though this is a double-edged sword).
6. Legal & WTO Challenges
• *Filing complaints at the WTO* against U.S. tariffs, as done in previous trade wars.
• *Forming alliances with other affected countries* to jointly oppose U.S. protectionism.
7. Domestic Stimulus & Self-Reliance
• *Boosting domestic consumption* to offset export losses.
• *Accelerating tech independence* (e.g., semiconductor self-sufficiency via policies like “Made in China 2025”).
Conclusion
China has a *strategic, multi-layered approach* to counter U.S. tariffs, combining retaliatory measures with long-term economic resilience strategies. The goal is not just short-term retaliation but also reducing dependency on the U.S. market while strengthening global alliances.
Last year, China announced a ban on the export of key minerals to the US, a move that could significantly impact the US technology manufacturing sector. According to a Reuters report, China’s export ban includes minerals such as gallium, germanium, and others.
These minerals are essential components in a wide range of technologies, including semiconductors, infrared technology, fiber optic cables, solar cells, military applications (e.g., ammunition, nuclear weapons). Gallium and germanium are crucial for semiconductors, while germanium also plays a role in infrared technology, fiber optic cables, and solar cells.
