US-China Trade Tensions Shift Regional Balance

Published on 4.17.25

  The ongoing trade tensions between the US and China have significant implications for international relations in East Asia. The tariffs imposed by the US on Chinese exports have pushed the Chinese economy into a period of persistent slowdown, creating an opportunity for China to reshape the geopolitical landscape of the region. China's President Xi Jinping is taking advantage of this situation by hosting economic dialogues with Japan and South Korea, which were previously cultivated by the US as part of its strategy to counter Chinese regional influence. The country dominates the global rare earth supply chain, supplying 72% of US rare earth imports, and retains the ability to target key US agricultural export sectors such as poultry and soybeans. In response, South Korea and China are pushing for a trilateral Free Trade Agreement (FTA) with Japan, facilitated by over 40 representatives from both countries. This development has significant implications for international relations in East Asia, as it may lead to a shift in the balance of power away from the US. Japanese Prime Minister Shigeru Ishiba is willing to visit the US to meet with President Donald Trump and press him to address Japan's concerns over tariffs imposed by the US on Japanese exports. The US broadside against its trading partners has also prompted China to strengthen its trade ties with Southeast Asian nations, which were targeted with now-paused reciprocal tariffs by the Trump administration.

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