The US wants allies to decouple from China, Plus Wall Street braces for new China 'delisting' push -- China Boss News 4.25.25
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What happened?
After months of ghosting and then tariff-whipping allies, the Trump Administration now wants a coalition to contain China if Treasury Secretary Scott Bessent is to be believed.
In several remarks with industry leaders and journalists this month, Bessent has leaned into recasting President Trump's "America First" agenda as "America and allies ... with conditions."
Earlier this week, Bessent told onlookers at the Institute of International Finance in Washington, D.C., that "America First does not mean America alone."
His statements aimed to rebrand Trump's isolationist tendencies as a sort of reformist internationalism. They suggested that the US leadership hadn't abandoned multilateralism, just given it a new look.
In an April 9 speech to the American Bankers Association, Bessent laid out a plan to strike trade deals with US allies and then confront China as a bloc.
He coupled this outreach with a sharp warning to the EU—Spain in particular—against drifting toward Beijing, unhelpfully likening it to "cutting your own throat."
The message: team up with America so we can isolate Big, Bad China.
In other words, Team Trump is ready to lead the cavalry charge against Beijing, but will anyone ride with them?
Why it matters
The US-China hedge
The irony is that Trump's tariffs may now push its number one ally, Europe, closer to Beijing as a hedge against American unpredictability.
Recent reports suggest that, despite mounting pressure from the US to sever economic ties with China, Brussels is holding the line on "de-risking" and is not "decoupling."
In classic Eurocratic fashion, the European Commission maintains that its trade talks with the US are separate from its China policy—even as Trump's team attempts to fuse them with ultimatums.
Until recently, it seemed like President Ursula von der Leyen, long considered Brussels' leading China hawk, might be open to a sharper break. 🤔
However, that looks to have changed after an April 8 phone call with Chinese Premier Li Qiang.
A more precise indicator of where things currently stand can be found in the European Commission's readout.
According to the statement, the call tackled growing trade imbalances and fears that US tariffs will turn Europe into a dumping ground for Chinese exports.
To head that off, Brussels and Beijing floated a plan to monitor trade diversion—essentially, a customs pressure valve.
Von der Leyen also pushed for market access and reforms that European firms have chased for years inside China's fortress economy.
Translation? The topics considered surpass ordinary diplomatic maintenance.
Instead, it's Europe that is now on the transactional bend, opting for case-by-case engagement with Beijing on trade, climate, and even Ukraine while refusing to subscribe to binary "only China" or "only U.S." worldviews.
On Wednesday, China moved to lift sanctions on EU officials—originally imposed in 2021 in retaliation for European measures targeting Beijing over human rights abuses in Xinjiang.
The solitary gesture came from strategy, not generosity.
Beijing is betting on resuscitating the long-stalled Comprehensive Agreement on Investment, a "pragmatic" Merkel-era deal once hailed by the Financial Times as the intended "cornerstone" of EU-China relations.
The EU may be edging toward a trade détente with China, but it's not out of trust—it's out of necessity.
Noah Barkin of Rhodium Group says a July summit could yield progress, especially if Brussels drops its EV tariffs and Beijing tightens its export spigot.
But it's not just Europe recalibrating.
Et tu, Ottawa?
In another sign that Washington's tariff barrage may be driving allies away rather than rallying them, Canada is now flirting with a remarkable proposition: deeper integration with Europe.
So deep there could be a merger.
EU membership isn't on Canadian election ballots—yet—but the idea is no longer fringe.
A striking poll backs me up: 44% of Canadians now support joining the EU—ten points more than those who oppose it.
The idea isn't as wild as it might seem.
Some very flattered European scholars and officials contend that, while legal hurdles remain, being "European" isn't just geographic—it's ideological.
Besides, Canada, with its social model, legal system, and shared democratic values, already fits the mold. One expert even called Canadians "special Europeans."
But note the opportunities missed.
Ottawa has spent years trying to stabilize ties with Beijing and coordinate China strategy with Washington—only to be met with indifference.
Now, with Trump rattling markets and mocking Canada as the "51st state" (only he knows if he's joking), Washington suddenly wants to talk—but it's looking for safer bets.
As Trump's tariffs, disruption, and trash-talk ricochet through global markets, countries aren't rallying behind Washington—they're bracing, hedging, and cutting their own deals. Even Ursula von der Leyen, once hailed in D.C. as a China hawk, is pitching Beijing for stability.
The White House claims over 70 countries are rushing to negotiate. In reality? Just 18 proposals, per the press secretary—and many initiated by Washington itself.
If nations are "rushing," they are leveraging US desperation. As one trade official put it, "Everyone knows Trump wants a deal. So they wait. Then they ask."
Besides, everyone knows (by experience) that Beijing, backed by deep subsidies, can always offer better.
The US won on trust and predictability—not price—but on the rule of law that shielded firms, not political bluster. At least, it used to.
While allies like Mexico may nod along, full-scale decoupling isn't yet feasible for a world still reliant on China for electronics, minerals, and manufacturing.
The White House insists China is isolated. In truth, it's the US risking drift into a never-world—undone not by Beijing but by its own red-capped psyops dressed as strategy.
Trump's tariff crusade is a decade premature. It fits his disruptor brand, but "break to remake" collapses under present-day facts and the prospect of bare store shelves.
All the while, China is deepening Belt and Road ties, pushing yuan internationalization, and binding ASEAN closer—as middle powers, caught in the churn, are learning there's no risk-free way to stay neutral.
This Week's China News
The Big Story in China Business
WALL STREET BRACES FOR NEW CHINA DELISTING PUSH: Renewed regulatory scrutiny, sharpened by a broadside "everything is on the table" remark from US Treasury Secretary Scott Bessent, has reignited fears of a mass exodus of Chinese stocks from American exchanges, according to CNBC's Evelyn Cheng.
At stake: as much as $800 billion in US holdings and the future of financial ties between the world's two largest economies.
Under the Trump administration's revived "America First Investment Policy," with SEC Chairman Paul Atkins signaling strict enforcement of audit rules, the path to delisting has suddenly become more plausible — and potentially much faster than expected.
Despite efforts from Chinese regulators to calm the waters and faint signs of de-escalation, the political drumbeat is growing louder.
A bipartisan push is demanding that US banks pull support from major Chinese IPOs, and advocacy groups are calling delisting "overdue."
For now, markets are caught in a tug-of-war: hopes of easing tensions clash with the hard reality that financial decoupling is no longer a fringe idea — it's gaining institutional momentum.
'Not sustainable': Yet markets roared back this week after Treasury Secretary Scott Bessent and Trump both signaled the 145% tariffs on Chinese goods were "not sustainable" and would be "substantially" reduced—though not scrapped.
Trump also backed off his feud with Fed Chair Jerome Powell, claiming he had "no intention" of firing him, a whiplash reversal from days of public attacks.
Once the rhetoric softened, US and Asian stocks rallied, the dollar jumped, bond yields climbed, and gold plunged 4%.
Yet cracks in the rosier outlook remain as Trump claimed new talks with China were underway while Beijing flatly denied them.
Analysts warned the rally may be short-lived.
Trade uncertainty lingers, Powell isn't exactly safe, and Beijing still isn't blinking on its recent tit-for-tat tariff escalation.
Instead, it's ramping up countermeasures—blocking Boeing, tightening rare earth exports, and leaning on third countries to shun US firms.
And the 70+ countries supposedly lining up for deals? The White House earlier this week admitted just 18 are in talks with proposed terms.
Hardly enough to calm skittish investors—or shake those weather-worn state capitalists in Beijing.
Law and International Xi
CHINA WARNS US ALLIES AGAINST JOINING TRADE OFFENSIVE: Beijing has delivered a stark ultimatum to US partners: Do not align with Washington’s economic pressure campaign against China, or you will face repercussions.
The warning, amplified through state media and official channels, comes in response to the Trump administration’s latest gambit—leveraging punitive tariffs as geopolitical bargaining chips.
Countries that limit their economic engagement with China could be granted exemptions from the US tariff stick.
More than 70 governments have reportedly been approached—turning the intent from a mere trade strategy into a post–Cold War campaign to redraw global supply chains along ideological lines.
Beijing, of course, sees it as siege warfare.
“Appeasement cannot bring peace,” declared China’s Ministry of Commerce, characterizing the US moves as “unilateral bullying” rather than legitimate diplomacy.
In response, Xi Jinping is rallying China’s trade partners in Southeast Asia and beyond, casting China as the more stable, rules-based alternative to Washington’s hardball tactics.
The big squeeze: Meanwhile, friction is building: Beijing has reportedly urged South Korean companies not to ship products containing Chinese rare earth minerals to US defense contractors—an example of China weaponizing its dominant position in key supply chains.
South Korea is still verifying the report, but if it holds, we’re looking at more Cold War-style choke tactics. Remember the ‘domino effect’?
Suffice it to say, once again: the US-China clash has moved far beyond tariffs—it’s now a litmus test for global alignment.
Geopolitics
AMERICANS COULD BE ‘WARMING UP’ TO CHINA: A new Pew Research Center poll suggests a subtle but striking shift: the share of Americans holding an unfavorable view of China has dropped from 84% in 2024 to 77% in 2025—the first decline in five years.
The timing is indicative.
The Trump administration just reignited a full-blown trade war, slapping a 145% tariff on Chinese imports. Beijing hit back with 125% duties on US goods and a targeted rejection of American gas exports.
A slim majority—52%—believe the tariffs are hurting the US more than helping. Just 10% think the US benefits more, and another 25% see the pain as mutual.
That said, the shift in sentiment may be less about geopolitics and more about sticker shock.
As Americans feel the strain—at the pump, in the grocery aisle, and in their portfolios—support for economic confrontation is starting to fray.
If the trade war was designed to rally the public around a common adversary, it may be having the opposite effect.
China loves a good survey: And Beijing is paying attention. China employs over two million “public sentiment analysts” to track domestic mood swings and steer online discourse.
Abroad, it spends billions manipulating global opinion through propaganda, censorship, and information warfare.
The goal isn’t democratic feedback—it’s narrative dominance. You know, saturate media and multinational marketing posts with inflated stats and polished “analyses” of China’s rise until the perception becomes reality—a geopolitical fake-it-’til-you-make-it.
So when Pew shows softening American views, it doesn’t go unnoticed.
Xi Jinping likely sees the poll as proof that US public support for a hardline stance is weakening—and an opportunity to exploit.
He’ll frame China as the pragmatic actor while portraying the US government as erratic and hysterical and out of step with its own people.
Foreign policy isn’t made by polls—but it’s often undone by them.
Best Reads
Trump Is Losing Asia (Robert A. Manning, Foreign Policy): Manning argues that under Trump, the gap between US military support and its shrinking economic role in Asia has grown as tariffs, distrust of allies, and efforts to cut ties with China weaken American influence and force the region closer to choosing between the two powers.
Exclusive: Every AI Datacenter Is Vulnerable to Chinese Espionage, Report Says (Billy Perigo, Time): Tech companies are pouring billions into US datacenters to power next-generation AI, but a new report warns these facilities are highly vulnerable to Chinese espionage.
It’s China’s turn to face transnational terrorism threats (Molly Saltskog and Colin P. Clarke, Defense One): Transnational jihadist groups now view China as a genuine target across multiple hotspots.
Middle Kingdom Surreal
DYSFUNCTIONAL BRICS WILL ‘DEFEND’ GLOBAL ORDER: A system painstakingly built by Washington in the postwar era is now being defended by Beijing and Brasília, even as the US dismantles it under the banner of “America First.”
Brazil’s veteran diplomat Celso Amorim captures this inversion with remarkable poise 😏, declaring that “China and developing nations are today the main defenders of the multilateral system.”
At the same time, he insists that Brazil seeks no exclusive alliances and values relations with all major powers.
Yet behind this posture of balanced diplomacy lies a clear strategic pivot: China is Brazil’s largest export market, and Amorim counts Beijing’s foreign minister as a “very good friend.”
Amorim still believes that a global order without US involvement isn’t realistic. “Step by step, we’ll need to bring the United States back in,” he told the Financial Times.
For now, Brazil aims to avoid direct conflict with Washington, but, as he added, “we’re also not going to stop giving our opinion.”
Amorim’s vision may invite cynicism, but it’s rooted in pragmatism, not utopia.
He acknowledges the contradictions yet sees no viable alternative to a world shaped—however unevenly—by cooperation.
For China Boss, however, the fundamental paradox is that China and Brazil—two countries long hobbled by staggering corruption—are now the ones citing the rulebook.
Note: Even Transparency International almost certainly gets it wrong, likely due to the Middle Kingdom’s layers of opaqueness—China should rank lower than Brazil, somewhere near Russia.
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Enjoy your weekend.
