Countries have to choose, but it’s difficult
China is the world’s largest exporter and the U.S. the largest importer. Total trade for China reached a record 43.85 trillion yuan (US$6 trillion) in 2024, and the country is the biggest trading partner for most of the world, including the European Union, Japan, South Korea and the grouping of the 10 Southeast Asian countries known as ASEAN.
The U.S. is the biggest destination for China’s exports, though China is only the third-largest trading partner with the U.S., behind Mexico and Canada. Total trade for the U.S. last year was US$5.4 billion, with a record deficit of $1.2 trillion. For ASEAN countries, trade with the U.S. totaled $477 billion in 2024, including $352 billion worth of goods sold to the U.S. But China does more business with ASEAN.
Countries caught between the U.S. and China are in “an impossible situation” because they need to stay economically connected both to China, “a source of a lot of their input and imports” and to the powerhouse U.S. market, said Matthew Goodman, director of the Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations.
“They cannot choose one or the other, because they need both,” Goodman said.
In Europe, China is preparing to lift sanctions to revive a trade deal, according to the Hong Kong-based South China Morning Post. Chinese state media have been calling on European leaders to join China in safeguarding the multilateralism.
Back in Beijing, Xi has been receiving foreign leaders. On Thursday, he told Kenya’s president that China’s market has always kept its door open to high-quality products from Kenya and that China encourages more capable Chinese enterprises to invest and start businesses in Kenya, according to the official Xinhua News Agency. On Wednesday, Xi met Azerbaijan’s president. Xi criticized the trade war as undermining the rights and interests of all countries.