Instead, Beijing adjusted its strategy, cooled old tensions, and strengthened ties with countries looking for stability in an increasingly uncertain world.
The result has been striking. China posted a record trade surplus of $1.2 trillion in 2025, while foreign exchange inflows hit an all time high of $100 billion in a single month. At the same time, the global use of China’s currency, the yuan, continued to expand, signaling a slow but steady shift in global finance.
As Washington’s trade policies unsettled long time allies, China leaned into diplomacy. It reached out to partners such as Canada, India, and European nations, presenting itself as a predictable and steady trading partner.
This week, British Prime Minister Keir Starmer arrives in Beijing for a four day visit, hoping to reset strained business ties. It will be the first visit by a UK prime minister since 2018 and follows Canadian Prime Minister Mark Carney’s recent trip, Canada’s first at that level in eight years.
During Carney’s visit, China and Canada signed an agreement aimed at cutting trade barriers and building a closer strategic relationship. Carney described China as ‘a more predictable and reliable partner’, a phrase now echoing across diplomatic circles.
‘China has positioned itself well,’ said Aleksandar Tomic, an economics professor at Boston College. ‘It is presenting itself as reliable at a time when others appear uncertain.’
Trade tensions between the U.S. and China remain intense. Trump raised tariffs on Chinese goods to over 100% earlier in 2025 before easing them slightly under a temporary truce. Chinese exports to the U.S. fell 20% last year.
Exports to Africa surged 25.8%, while shipments to Southeast Asia, Latin America, and the European Union also rose sharply. Instead of depending on one market, China spread its risk, a move analysts describe as practical rather than dramatic.
‘The more difficult the U.S. becomes to deal with, the more room it creates for China,’ Tomic said.
At home, China still faces challenges. Weak consumer spending and a long property slump have put pressure on growth. Yet despite these headwinds, the economy met the government’s 5% growth target for 2025.
Beijing has also rolled out measures to attract foreign investment, opening parts of its services sector, including telecoms, healthcare, and education in pilot programs across major cities.
China’s financial markets have responded well. The Shanghai index rose 27% over the past year, outperforming U.S. stocks. Market trading hit record levels, and China equity outperformance has become a growing talking point among global investors.
As confidence in the U.S. dollar wavers amid shifting U.S. policies, China is pressing ahead with its long term goal, making the yuan a global trade currency.
Today, more than half of China’s cross border trade is settled in yuan, compared with almost none 15 years ago. Nearly half of China’s overseas lending is now done in its own currency. ‘This time feels different,’ said a banker at a global firm. ‘Trump’s policies have unintentionally helped speed up yuan usage.’
Still, not everyone is convinced. Some foreign policy experts warn against reading China’s charm offensive as a full reset.
‘Distrust of the U.S. does not automatically mean trust in China,’ said Patricia Kim of the Brookings Institution. She noted that concerns remain over China’s trade practices, economic pressure tactics, and unresolved regional disputes.
For now, China appears calm, pragmatic, and ready to do business. Whether that image lasts and how deep the trust runs, remains an open question.
But one thing is clear, as global uncertainty grows, China is positioning itself as the country that stays the course.
