Beijing continues to be willing to endure economic hardship to put pressure on the U.S., even as the Trump administration hints at a more conciliatory approach.

The US is no longer China's biggest export market: that spot now belongs to South East Asia. In fact China was the largest trading partner for 60 countries in 2023 - nearly twice as many as the US. The world's biggest exporter, it made a record surplus of $1tn at the end of 2024.

Treasury Secretary Scott Bessent sparked optimism in financial markets Tuesday when he called the tariff-driven trade war between the U.S. and China "unsustainable" and said it would likely "de-escalate.