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Trump is Boosting China’s Appeal: 10 Reasons the World is Looking East

Ricardo Martins, March 29, 2025

With Donald Trump in the White House, global power dynamics shift, and China is positioning itself as an increasingly attractive, reliable partner for nations worldwide.

Trump is Boosting China’s Appeal: 10 Reasons the World is Looking East

While the U.S. under Trump’s second term is prioritizing protectionism and unilateralism and creating chaos among its closed allies, Beijing is leveraging the situation, positioning itself as an economic strength, diplomatic stability, and technological innovation to deepen global ties.

Below, I present 10 key reasons why China is becoming more appealing to the world.

China is no longer just a competitor—it is a global leader shaping the 21st century

1. The World’s Leading Economic Growth Engine

Despite global economic slowdowns, China remains one of the fastest-growing major economies. Beijing set a 5% growth target for 2025, reinforcing confidence in its stability. In manufacturing and trade, China remains the world’s largest exporter, contributing over 30% of global manufacturing output. In the Foreign Direct Investment (FDI), China attracts billions in FDI due to its vast consumer base and advanced infrastructure.

2. The Largest Consumer Market in the World

With a population of 1.4 billion, China offers businesses an unparalleled consumer market. Over 400 million Chinese citizens are now classified as middle-class, fueling demand for luxury goods, technology, and services. In e-commerce, companies like Alibaba and JD.com have turned China into the world’s largest online retail market, and in the automobile Industry, China is the biggest electric vehicle (EV) market, driving innovation and demand.

3. Infrastructure Superpower: The Belt and Road Initiative (BRI)

China’s Belt and Road Initiative (BRI) is reshaping global trade by funding infrastructure projects in 150+ countries. More than 1 trillion in Investments were spent on financing railways, ports, and highways across Asia, Africa, Europe and Latin America. Better connectivity between China and these regions has reduced shipping times significantly. Further, China has invested heavily in energy, telecom, and transportation projects across Africa and Latin America.

4. Technological Innovation & Leadership

China is rapidly emerging as a global technology leader in key industries: (i) Artificial Intelligence (AI): The government aims to make China the world’s AI superpower by 2030; (ii) 5G and telecommunications: Huawei dominates the global 5G infrastructure market; and (iii) EV & battery production: China controls over 75% of global battery manufacturing, powering the green revolution.

5. The Shift Away from U.S.-Dominated Trade

De-dollarization trend is underway as more nations are trading in Chinese yuan (RMB) to reduce reliance on the U.S. dollar. China is now ASEAN’s largest trading partner, surpassing the U.S. and EU.

China leads institutions like the Asian Infrastructure Investment Bank (AIIB) or the New Development Bank (NDB), also known as the BRICS bank, challenging Western-led organizations.

6. Diplomatic Stability Amid U.S. Uncertainty

While Trump’s America isolates itself with trade wars, unpredictable policies and assaults on conventional diplomacy – being the main victims its closed allies -, China promotes diplomatic stability through a non-interference policy and a consistent diplomacy. Unlike the U.S., China does not push for regime change or military interventions. China has been active in peace brokering and has helped mediate conflicts, including the Saudi-Iran agreement in 2023 and is ready to send peacekeepers to Ukraine.

In terms of soft power, through Confucius Institutes, cultural exchanges, and media outreach, China is winning global influence.

7. A Reliable Trade and Investment Partner for Europe

As Trump reimposes tariffs on European goods, China is stepping in as a more predictable partner. Despite challenges, Europe sees China as a critical trade ally. China is a key buyer of European luxury cars and machinery, as well as of luxury and fashion. Brands like Louis Vuitton and Hermès see China as their largest growth market.

8. Strategic Ties with the Global South

China has expanded its presence in Africa, Latin America, and South Asia through (i) Debt relief and loans: Unlike the IMF, China offers loans with fewer political conditions; (ii) Resource partnerships: China secures energy, lithium, and rare earth minerals through direct investment in developing nations; and (iii) Infrastructure development: Major railway, port, and telecom projects in Africa and Latin America boost China’s global influence.

9. A Leader in Green Energy & Climate Policy

China is aggressively investing in renewable energy, outpacing Western nations. This is the case of solar and wind power, as China produces 50% of the world’s solar panels and wind turbines, and leads in electric vehicles (EVs) and green infrastructure. The country has the biggest high-speed rail network in the world, reducing carbon emissions.

10. A Contender for Global Leadership

China is shaping the future of global governance by expanding its influence in key areas, such as: Security & defense: Increased military presence in the South China Sea & Indo-Pacific; Alternative alliances: Strengthening ties with BRICS to challenge Western dominance; New financial systems: Creating digital yuan (CBDC) to counterbalance the U.S. dollar’s dominance in global finance.

My Final Takes

As U.S. policies under Trump create instability, many see China as a more reliable economic and diplomatic alternative. Although China faces challenges, including demographic shifts and regulatory concerns, its economic resilience, technological dominance, and diplomatic strategy make it an increasingly attractive global power.

Despite this, some challenges remain. While its global appeal is growing, China still faces deep-seated geopolitical tensions that persist (e.g., Taiwan, human rights, border and sea disputes). Further, Europe and the U.S. still hold significant influence, particularly in defense, financial markets and multilateral organizations, such as the IMF and World Bank.

Despite the unstable relations during Trump’s second term, Europe is unlikely to abandon Washington in favor of Beijing. Instead, a pragmatic approach is emerging—one that still tries to maintain transatlantic cooperation while selectively engaging with China to minimize economic disruptions. Despite all, Europe still counts on an after-Trump security guarantees. Unlike the U.S., China does not provide Europe with security guarantees.

One thing is clear: China is no longer just a competitor—it is a global leader shaping the 21st century and has a more favourable appeal in the Global South than the U.S. and Europe.

 

Ricardo Martins ‒PhD in Sociology, specializing in policies, European and world politics and geopolitics

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