A year into Trump presidency, China pivot accelerates amid strained US alliances
The Chronify
As US President Donald Trump’s “America First” agenda strains ties with traditional allies, Beijing is strengthening relations with key global partners. China’s trade surplus and global influence surged sharply over the past year, analysts say.
A year after Donald Trump returned to office with an “America First” agenda, China has emerged as a major beneficiary of shifting global trade dynamics, analysts say, successfully expanding its influence while Washington’s relations with allies remain under pressure.
While many initially predicted serious challenges for China’s slowing economy, Beijing instead moved to repair and deepen ties with other major economies, including Canada and India, as US trade and tariff policies unsettled long-standing partnerships.
As a result, China’s trade surplus reached a record $1.2 trillion in 2025. Monthly foreign exchange inflows climbed to an unprecedented $100 billion, while global usage of China’s currency, the yuan, expanded significantly.
Analysts note that China’s economic recalibration has been accompanied by growing diplomatic outreach. This trend is expected to continue as Keir Starmer arrives in China on Wednesday evening, seeking to reset strained business and trade relations between London and Beijing.
“Backed by its $20 trillion economy and $45 trillion worth of stock and bond markets, China is increasingly seen as a steady and reliable partner,” said Aleksandar Tomic, an economics professor at Boston College.
Experts add that as Washington’s policies create uncertainty among allies, Beijing is positioning itself as an alternative economic and political anchor in the global system.
While many initially predicted serious challenges for China’s slowing economy, Beijing instead moved to repair and deepen ties with other major economies, including Canada and India, as US trade and tariff policies unsettled long-standing partnerships.
As a result, China’s trade surplus reached a record $1.2 trillion in 2025. Monthly foreign exchange inflows climbed to an unprecedented $100 billion, while global usage of China’s currency, the yuan, expanded significantly.
Analysts note that China’s economic recalibration has been accompanied by growing diplomatic outreach. This trend is expected to continue as Keir Starmer arrives in China on Wednesday evening, seeking to reset strained business and trade relations between London and Beijing.
“Backed by its $20 trillion economy and $45 trillion worth of stock and bond markets, China is increasingly seen as a steady and reliable partner,” said Aleksandar Tomic, an economics professor at Boston College.
Experts add that as Washington’s policies create uncertainty among allies, Beijing is positioning itself as an alternative economic and political anchor in the global system.
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