Chinese President Xi Jinping has issued a strong warning against “bullying” and “hegemonism,” suggesting that such actions only lead to self-isolation, in a pointed message believed to target the United States. This came just a day after Washington and Beijing reached a temporary truce in their long-running tariff war.

Xi made the comments while addressing a summit in Beijing attended by Latin American and Caribbean leaders, including the presidents of Brazil, Colombia, and Chile. The setting was significant — these regions have increasingly become battlegrounds for influence between the US and China.

“There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation,” Xi said, reiterating a familiar line used throughout the trade dispute with the US. He emphasized that in a world experiencing massive, transformative shifts, unity and cooperation are now more essential than ever.

A Fragile Truce

Xi’s comments come just one day after the US and China agreed to a surprising rollback of tariffs that had escalated to punishing levels. The 90-day agreement involves the US reducing tariffs on Chinese goods from 145% to 30%, while China cuts its retaliatory tariffs on US products from 125% to 10%. The deal also includes reductions in tariffs on small packages and the suspension of non-tariff countermeasures by China.

The White House declared the move a win, highlighting it as proof of President Donald Trump’s “deal-making prowess.” But in Beijing, the state-run media described the development as a “huge victory” for China, crediting Beijing’s steadfast resistance and retaliatory policies for forcing the US to the negotiating table.

According to Chinese media outlet Yuyuan Tantian, affiliated with CCTV, “China’s firm countermeasures clearly had a significant impact on the US.” The sentiment was widely shared on social media platforms like Weibo, where users noted that Trump’s new tariff rate on China now mirrors that applied to US allies like the UK — a perceived softening of American pressure.

Mutual Pain, Shared Motivation

Throughout April, the trade conflict had rapidly intensified, with both sides introducing retaliatory tariffs in quick succession. These actions caused severe disruptions to global trade and economic uncertainty, prompting urgent calls from industry groups and economists for de-escalation.

By May, with both economies suffering and global markets reacting poorly, the motivation to ease tensions became clear. “Because the economic and trade ties between China and the US are so deeply intertwined, both sides are feeling the pain,” said Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing.

Wang emphasized that while China stood its ground on principle, it was also flexible enough to engage diplomatically, avoiding an insistence that all US tariffs be removed before discussions began. This allowed both parties to create breathing room and begin a “gradual treatment approach” to deeper issues.

Trade, Influence, and Global Partnerships

Beyond economic diplomacy, Xi Jinping is pushing a broader narrative of China as a cooperative, global leader, particularly among countries of the Global South. At the fourth ministerial meeting of the China-CELAC Forum — a body founded in 2014 to strengthen China’s presence in Latin America and the Caribbean — Xi pledged solidarity and tangible support.

“Independence and autonomy are our glorious tradition. Development and revitalization are our inherent right. And fairness and justness are our common pursuit,” Xi said, positioning China as a natural ally to countries wary of American dominance.

In a concrete step to deepen these ties, Xi announced credit lines worth 66 billion yuan (around $9.2 billion) to CELAC member countries. These funds, denominated in yuan, are part of a strategic effort to internationalize China’s currency and reduce dependency on the US dollar in global trade.

Last year, China emerged as Brazil’s largest soybean buyer, consuming more than 73% of the country’s total exports. The growing trade volume between China and Latin America — now exceeding $500 billion annually — signals deepening interdependence, which Beijing is keen to expand.

China’s Global Image Strategy

Xi’s messaging is also a continuation of a diplomatic campaign to reshape global perceptions of China. In recent weeks, Beijing has emphasized multilateralism, equal rights, and shared prosperity in forums ranging from the World Trade Organization (WTO) to regional summits like CELAC.

Wang Yiwei noted that China’s resistance to unilateral US tariffs also serves a symbolic purpose, showing that smaller nations do not need to submit to Washington’s pressure. “If even China can’t hold the line, wouldn’t that mean the whole world has to beg the US for mercy?” he asked rhetorically.

While the US may argue that the deal validates its aggressive trade tactics, many international observers believe the damaged credibility of the US among its allies and trade partners might take longer to repair. China, meanwhile, is using the moment to deepen alliances with countries disillusioned by American unpredictability.

Strategic Patience Over Shock Therapy

Xi’s leadership style has long emphasized strategic patience, a preference for long-term influence-building over short-term wins. By refusing to bend under pressure and instead fostering relationships with other major regions, Beijing is betting that a multipolar world order is emerging — and China aims to lead it.

The China-CELAC Forum is one of several mechanisms through which China is extending its reach. Similar efforts are visible in Africa, Southeast Asia, and parts of Europe under the Belt and Road Initiative (BRI).

Meanwhile, in the background of tariff talks and international summits, China continues to promote the yuan as a global currency, sign more free trade agreements, and build technological and infrastructure links with countries outside the traditional Western sphere.

In Summary:

• Xi Jinping used a major summit to warn against bullying and promote China as a global defender of fair trade.

• The US-China truce temporarily de-escalates a costly trade war that affected global markets.

• China’s influence in Latin America continues to grow through diplomacy, trade, and financial investments.

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