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🗞️ Driving the news: Chinese President Xi Jinping has issued a warning against “bullying” and “hegemonism,” in what analysts interpret as a veiled critique of U.S. trade policy, just one day after a 90-day tariff rollback was agreed between China and the U.S.
• Xi made the remarks at a summit with Latin • American and Caribbean leaders in Beijing, where he pledged $9.2 billion in credit lines to the region
• The temporary truce lowers U.S. tariffs on Chinese goods from 145% to 30%, and China's from 125% to 10%
🔭 The context: The rollback marks a significant de-escalation of the trade war that intensified after the U.S. imposed severe tariffs under President Trump’s second term. China responded with its own steep levies
• The truce comes amid broader U.S.-China tensions over trade, security, and global influence — especially in strategic regions like Latin America
• Xi’s comments and economic offers to CELAC countries signal China's intent to deepen South-South cooperation and counterbalance U.S. influence
🌍 Why it matters for the planet: The trade truce may help stabilise global markets and avoid further economic disruptions that undermine international cooperation on climate and sustainability
• However, the emphasis on geopolitical positioning — through trade and investment — raises concerns about the prioritisation of strategic leverage over multilateral action on global environmental challenges
• The green implications of credit-backed infrastructure in Latin America will depend heavily on the nature and conditions of the projects funded
⏭️ What's next: The 90-day tariff rollback provides breathing space for further negotiations, but it remains temporary
• Both powers will likely use this window to test the other's political will while shoring up influence in key regions
• China’s deepening economic engagement with Latin America — particularly via yuan-denominated credit lines — also suggests further erosion of dollar dominance in global trade
💬 One quote: “There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation,” — Xi Jinping, President of China
📈 One stat: Trade between China and Latin America exceeded $500 billion in 2024, with China receiving over 73% of Brazil’s soybean exports
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