China courts U.S. allies as defense against Trump's protectionism

Beijing hopes to use 'proactive' tariff cuts and investment offers to draw American partners in Europe and Asia

- Lingling Wei

With President-elect Donald Trump promising to inflict pain on the Chinese economy by shutting out Chinese goods from the U.S. market, Beijing is looking at ways to peel American allies away from Washington in response.

Trump's campaign pledge to impose tariffs of up to 60% on imports from China threatens the very growth model promoted by Chinese leader Xi Jinping, one that centers on ramping up manufacturing and exporting the country's way out of a downturn.

To offset the potential hit to the already wobbly Chinese economy, the Xi leadership is considering plans to shower American allies in Europe and Asia with tariff cuts, visa exemptions, Chinese investments and other incentives, according to people close to Beijing's decision-making.

They say that while China is willing to engage in dialogue with Washington once the new Trump team is in place, it is also seizing on the opportunity to court America's traditional partners to buy itself time and leverage in its intensifying competition with the U.S.

But Beijing is facing an uphill battle to make the strategy work. The European Union has hardened its stance on China in recent years and is angry with China's support for Russia's war in Ukraine, which it sees as an existential security threat.

U.S. allies in Asia, including Japan, South Korea and the Philippines, are also increasingly wary of their assertive neighbor.

In recent months, China has already removed visa requirements for travelers from some two dozen countries including Australia, New Zealand, Denmark, Finland and South Korea-without requiring that the moves be immediately reciprocated.

The strategy, labeled "unilateral opening" in China's policy circles, represents a tactical change for a leadership that has long favored quid-pro-quo economic and diplomatic deals.