Apr 11, 2025, 3:43 AM
Apr 10, 2025, 12:00 AM

China holds back from addressing Trump over tariffs out of fear

Highlights
  • Cambodia's garment industry faces a potential 49% tariff increase on exports to the U.S., threatening its economic stability.
  • Xi Jinping's fear of criticism from Communist Party members prevents him from engaging in discussions with Trump regarding tariffs, despite the economic rationale.
  • China's internal political dynamics hinder negotiations, leaving the ongoing trade conflict unresolved and potentially impacting other countries reliant on U.S. markets.
Story

On April 3, 2025, Cambodia was hit with the news that their garment exports to the United States would face a significant tariff increase of 49%. This tariff change is expected to have a devastating effect on Cambodia's garment industry, which is crucial to the country's economy as it accounts for more than half of its export revenues. Experts have warned that the enforcement of this tariff could lead to severe economic challenges for the nation, as a large portion of their garment products are sold in the U.S. market. Though President Donald Trump delayed the enforcement of these tariffs as of April 9, the possibility remains that they could be reinstated in the future, which threatens to further destabilize the Cambodian economy. As these developments unfold in the international market, China stands in a complicated position due to ongoing trade tensions with the U.S. Chinese President Xi Jinping finds himself in a precarious situation where reaching out to Trump to negotiate regarding tariffs could lead to backlash from fellow Communist Party members in China. Gordon Chang, a noted expert on China, has suggested that Xi's hesitation stems from a fear of criticism within the Party, as he has shaped a political climate where only the most aggressive strategies are deemed acceptable. Therefore, he is unable to make calls or take actions that could be seen as conciliatory to Trump, even if such moves would be in China's economic interest. This situation puts China in a vulnerable position where it aims to exert influence amidst perceived chaos in America, but is hampered by internal political dynamics. Xi's reluctance to negotiate creates a scenario where the trade war continues without resolution, impacting not only China and the U.S. but also countries like Cambodia and Vietnam that rely heavily on their exports to the U.S.

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