Nach Trumps Zoll-Attacke geht China auf Kuschelkurs mit deutschen Autokonzernen, berichtet F.A.Z.-Korrespondent Gustav Theile @GustavTheile:

Ok I can now tweet about it, the most advanced car in history is about to be unveiled. Live thread below.

By combining tactical retaliation with economic adaptation and diplomatic outreach, China can mitigate immediate impacts while advancing structural reforms to reduce vulnerability to U.S. trade pressures over time. (18/18) END

- **Global Alliances**: Position China as a defender of globalization, contrasting U.S. protectionism to attract European and Global South partners. (17/x)

### **Key Considerations** - **Avoid Escalation**: Balance firmness with flexibility to prevent a repeat of the 2018–2020 trade war, which harmed both economies. (16/x)

- **Supply Chain Resilience**: Develop regional production hubs and stockpile critical goods to insulate against future trade shocks. (15/x)

### **7. Long-Term Decoupling Mitigation** - **Financial Alternatives**: Promote yuan internationalization and explore alternatives to dollar-dominated trade (e.g., digital currency agreements). (14/x)

- **Domestic Propaganda**: Frame China’s response as principled yet restrained, emphasizing stability and long-term planning. (13/x)

### **6. Strategic Messaging** - **Global Narrative**: Highlight U.S. tariffs’ inflationary impact on American consumers and supply chain disruptions, leveraging international media to sway opinion. (12/x)

### **5. Technological Self-Reliance** - **Innovation Investment**: Prioritize semiconductor, AI, and green tech sectors to reduce dependency on U.S. technology and create high-value exports less vulnerable to tariffs. (11/x)

- **Currency Management**: Allow moderate yuan depreciation to offset tariff costs, while avoiding overt manipulation accusations. (10/x)

### **4. Domestic Support Measures** - **Industry Subsidies**: Provide tax breaks, low-interest loans, or R&D funding to sectors hit by tariffs (e.g., electronics, machinery). (9/x)

- **Domestic Consumption**: Strengthen the "dual circulation" strategy to boost internal demand, reducing reliance on external markets. (8/x)

### **3. Economic Diversification** - **Market Expansion**: Accelerate trade diversification via the Regional Comprehensive Economic Partnership (RCEP) and deepen ties with the EU, ASEAN, and Belt and Road Initiative partners. (7/x)

- **Multilateral Frameworks**: File a WTO dispute to challenge the tariffs’ legality, even if resolution is slow, to reinforce a rules-based order and rally international opinion. (6/x)

### **2. Diplomatic Engagement** - **Negotiation Channels**: Propose bilateral talks to address grievances, potentially reviving aspects of the Phase One deal while pushing for mutual concessions (e.g., easing U.S. tech restrictions in exchange for tariff reductions). (5/x)

- **Non-Tariff Measures**: Use regulatory tools, such as customs delays, inspections, or export controls on critical materials (e.g., rare earths), to signal resolve without overtly violating trade rules. (4/x)

### **1. Calibrated Retaliation** - **Targeted Tariffs**: Impose reciprocal tariffs on politically sensitive U.S. exports (e.g., agricultural goods, luxury products, or manufacturing components) to pressure key constituencies while avoiding broad escalation. (3/x)

In responding to a [potential] 10% tariff imposed by a second Trump administration, China should adopt a multifaceted and strategic approach that balances immediate pragmatism with long-term resilience. Here’s a structured response: (2/x)

How should China respond to #Trump's #tariffs? That's what I asked #Deepseek. And it's actually not bad, even includes a section on domestic propaganda. (1/x)