• The Daily Hints
• 30 Apr, 2025

As Trump slaps 145% tariffs on Chinese goods, sparking a fierce US-China trade war, Chinese netizens mock the move with viral memes on Weibo, showing Trump and Musk working in factories. Yet, Xi Jinping’s real challenge lies at home—China’s housing crisis, job insecurity and aging population threaten his economic dreams more than Trump’s trade tactics ever could.

Details & Context

On April 30th, 2025 the US-China trade war escalated as Trump imposed a staggering 145% tariff on Chinese imports, prompting China to retaliate with 125% tariffs on US goods, according to Reuters. Chinese social media, especially Weibo, erupted with AI-generated memes mocking Trump, with hashtags like “Trump Chickened Out” trending after he hinted at lowering tariffs, per CNN Business. One viral video on Douyin, reported by ABC News, humorously depicted Trump, JD Vance and Elon Musk assembling iPhones, set to a 1950s patriotic anthem, highlighting China’s defiance.

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Despite the trade tensions, Xi Jinping remains unfazed, emphasising China’s self-reliance. “For over 70 years, China has thrived on hard work not handouts,” Xi stated, as noted by BBC. China’s export reliance on the US has dropped significantly, with over 145 countries now trading more with China than the US, per the Lowy Institute. Xi’s recent Southeast Asia tour aimed to strengthen ties with nations like Vietnam, where 25% of Chinese exports are now routed, per The Guardian.

However, China’s domestic struggles overshadow the trade war. A housing crisis has left millions of apartments vacant—enough for 3 billion people, per a 2023 estimate by China’s former statistics official He Keng. Ghost cities dot the landscape, with home prices projected to fall 2.5% in 2025, per a Reuters poll. Job insecurity plagues the youth, with over 20% of urban 16–24-year-olds unemployed as of August 2023, per official data. An aging population of 300 million nearing retirement threatens to drain the pension fund by 2035, per the Chinese Academy of Social Sciences.

Quotes

·      “China doesn’t need the US to thrive. We’ve built our strength for decades,” Xi Jinping declared, reflecting Beijing’s confidence.

·      “Trump’s tariffs are a joke—our factories keep running while he backs down,” posted @Weijinfengdu on Weibo, capturing netizen sentiment.

·      “Domestic spending won’t recover overnight. It’s a long road ahead,” warned Prof Nie Huihua of Renmin University.

Additional Information

Xi’s government has rolled out measures to boost spending including $41 billion in subsidies for electronics and EVs, per BBC. Yet, experts like Prof Zhang Jun of Fudan University argue these are short-term fixes. On X, @MarioNawfal highlighted the trade war’s impact, noting Chinese factories facing order droughts, while @AP reported China’s economy grew 5.4% in Q1 2025, buoyed by exports before tariffs hit. David Perdue’s recent appointment as US Ambassador to China, confirmed on April 29th, signals a push for dialogue, though Beijing remains skeptical, per X trends.

China’s tech ambitions face hurdles from US chip export restrictions, particularly on Nvidia, aimed at curbing Xi’s goal of tech supremacy, per CNN Politics. Yet, China’s lead in EVs—BYD surpassing Tesla in 2024—and AI advancements like DeepSeek show resilience. Xi’s Belt and Road initiative continues to expand China’s global trade footprint, though past trade spats, like tariffs on Australian goods in 2020, may hinder his free-trade image, per The Guardian.

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Impact Analysis

Trump’s 145% tariffs have disrupted global markets, with US stocks dropping 15% from their February peak, per The Guardian. For China, the trade war exacerbates domestic woes—empty homes and jobless youth dampen consumer confidence, risking social unrest, as Freedom House noted a rise in financial protests. Politically, Xi gains leverage by positioning China as a stable trade partner, especially in the Global South, per Bloomberg. Economically, the tariffs threaten China’s 5% growth target, with Goldman Sachs slashing forecasts to 4%, per The Washington Post.

Socially, the trade war has fueled nationalism, with Weibo memes mocking Trump boosting morale, per India Today.

Trump’s 145% tariffs may have sparked a trade war but Xi Jinping’s real fight is within China’s borders. A crumbling housing market, jobless youth and an aging population pose greater threats to his vision of a prosperous China than US trade policies. While China’s global trade diversification offers some cushion, Xi must address these domestic crises to secure his legacy and maintain stability.

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