Victor Zikai Gao, who responded to the latest Trump tariffs on Friday, announced a 125% tariff on all American goods, Beijing-based China and Globalization vice president, said:
“We don’t care! China has been here for five,000 years. Most of the time, we weren’t and we survived.”
When pointing out that China will “lose the US market,” this accounts for 15% of total trade, he added.
“If the US wants to bully China, we hope to deal with the situation without the US and survive for another five,000 years.”
China’s retaliatory tariff hike comes shortly after President Donald Trump raised tariffs on Chinese imports to 145%. Trump’s tariffs have already had a major impact on international financial markets, with major stock indexes experiencing significant losses since the “liberation day” on April 2nd, with a slight recovery reported on Friday afternoon.
Trump’s tariffs pushing countries close to China
Many economists fear that Trump’s tariffs will cause a global recession, while others have turned to Beijing’s next move with Taiwan. “We’ve come to terms with the latest trends in international relations,” commented Zhiqun Zhu, a professor of international relations from Bucknell University in Pennsylvania.
“If current tariffs are maintained and China can survive this difficult period, it will certainly boost Beijing’s confidence that it will face potential Western sanctions in the future Cross-Stright War.”
Like most countries, the US does not officially recognize Taiwan as an independent country. However, Washington continues to be committed to supplying weapons to support Taiwan’s self-defense capabilities, opposes unilateral actions that change the current situation.
Meanwhile, European Union leaders are reportedly planning to travel to Beijing for a summit meeting with Chinese President Xi Jinping in late July. The news comes after Spanish Prime Minister Pedro Sanchez formed close ties with China in the face of Trump tariffs on Europe, calling Beijing a “EU partner.”
Capital flight to Bitcoin
During the attachment of geopolitical tensions and market volatility, cryptothratate reports that Bitcoin is increasingly considered a market hedge. While the stock market is plummeting, its prices are relatively stable, highlighting the important decoupling of Bitcoin and stocks as “risk-on” assets.
One theory is that China may devalue the country’s currency, the yuan. If the PBOC (People’s Bank of China) makes this move, Arthur Hayes, founder of Bitmex, believes the capital will flow into Bitcoin. He commented:
“CNY Deval = The story of a Chinese capital flight flowing to $BTC. It works in 2013, 2015 and could work in 2025.”
Quantitative easing, also known as “money print,” is another action that usually sees Bitcoin and the crypto market benefit from excessive liquidity.
According to Watcher Guru, a senior Fed official said late Friday that the Federal Reserve is “prepared to stabilize the market as needed.”
“And that’s the people of rap. Buy it all!”
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