China’s Economy Buckles: Trump’s Sanctions and Tariffs Deliver Crushing Leverage

“Beijing is desperate — they panicked when tariffs hit 150%. Now they’re trying to pressure President Trump to condemn Taiwan’s independence.” “That won’t happen. This shows just how nervous China really is.”

🚨 @mikepillsbury on China’s trillion-dollar bluff:

“Beijing is desperate — they panicked when tariffs hit 150%. Now they’re trying to pressure President Trump to condemn Taiwan’s independence.”

“That won’t happen. This shows just how nervous China really is.” pic.twitter.com/EVqOaVJlzL

— Laura Ingraham (@IngrahamAngle) October 7, 2025

In a stark reminder of the power dynamics in global trade, recent analyses highlight how China’s once-unstoppable economic engine is sputtering under the weight of renewed U.S. pressure. As detailed in a compelling piece from Whatfinger Business & Money, China’s crumbling economy—plagued by deflation, a collapsing property market, and soaring youth unemployment—hands the United States major leverage in ongoing trade negotiations. (Vid –China’s CRUMBLING economy gives the US MAJOR leverage in trade talks)

With President Donald Trump back in the White House, his aggressive sanctions and tariff hikes are exacerbating these woes, forcing Beijing to the bargaining table on unfavorable terms. Trump’s “maximum pressure” campaign, which includes tariffs climbing as high as 84% on Chinese goods, is not just rhetoric—it’s a calculated strategy that’s exposing China’s vulnerabilities and tipping the scales in America’s favor. As trade talks heat up ahead of a potential Xi-Trump summit, the U.S. holds the upper hand, potentially reshaping the global economic order.China’s economic troubles are multifaceted and deepening, far from the double-digit growth rates of decades past. According to a Reuters poll of 64 economists, China’s GDP is projected to slow to 4.5% in 2025, down from an estimated 4.9% in 2024, and further to 4.2% in 2026.

🇷🇼🇺🇸 U.S. STRIKES FIRST-EVER TUNGSTEN DEAL WITH RWANDA TO BREAK CHINA’S GRIP

The U.S. has begun receiving shipments of tungsten directly from Rwanda, a first in history and a huge win for the Trump administration’s push to dismantle China’s dominance over critical minerals.… https://t.co/xfnuGO3g5c pic.twitter.com/QjxbPl63x1

— Mario Nawfal (@MarioNawfal) October 8, 2025

This deceleration marks the weakest expansion since the early 1990s, excluding the pandemic years, and falls short of Beijing’s ambitious 5% target. Key drivers include a protracted property crisis, high local government debt, weak domestic demand, and deflationary pressures that have eroded consumer and business confidence since the post-COVID rebound fizzled. Retail sales, a bellwether for consumption, grew by just 3.4% year-on-year in August 2025—the slowest pace since November 2024—down from 3.7% in July. Industrial output rose by only 5.2% in the same month, the lowest since August 2024, hampered by extreme weather but underscoring a broader loss of momentum. Unemployment ticked up to 5.3%, a six-month high, while youth joblessness remains alarmingly elevated, contributing to social unrest and a “loss of hope” for upward mobility among over 80 million gig workers.

How is this even allowed? China Signs a $45 Million Deal with Google/Youtube to Push, in their own words, Propaganda Just kidding, that was Israel – click here

The property sector, once a cornerstone of China’s growth, is in freefall, dragging the economy down with it. New home prices fell 0.3% month-on-month and 2.5% annually in August 2025, accelerating the decline amid developer bankruptcies and oversupply. Fixed-asset investment barely grew by less than 1% in the first eight months of the year, reflecting curtailed spending by households reeling from shrinking wealth. Beijing’s attempts to stimulate through subsidies for consumer goods like appliances and autos have faltered, with funding exhausted and effects waning. Economists like Zichun Huang from Capital Economics warn that “underlying growth is clearly sliding,” raising the specter of more aggressive policy interventions. Yet, stimulus measures—such as interest rate cuts, reserve requirement reductions, and a 10 trillion yuan ($1.36 trillion) municipal debt package—have so far failed to ignite sustained recovery, leaving the economy “trapped in the doldrums.”

China’s J-20S: A Wake-Up Call for American Air Dominance in the Face of Rising Red Threats

Enter Trump’s renewed offensive, which is amplifying these internal fractures. Upon returning to office in January 2025, Trump escalated the trade war, imposing tariffs that started at 34% and rose to 84% on key Chinese exports, prompting retaliatory measures but ultimately hurting Beijing more. Analysts at UBS pinpoint these “potential U.S. tariff hikes” as the “biggest headwind” for China’s growth, impacting exports, corporate investment, and household consumption. Exports to the U.S. plummeted 33.12% year-on-year in August 2025, despite overall exports edging up 4.4%, as manufacturers scramble to divert shipments to alternative markets like Southeast Asia and Africa. The Atlantic Council notes that trade tensions have led to double-digit drops in U.S.-bound exports for five consecutive months, exacerbating oversupply issues as domestic demand fails to absorb factory output

Trump’s broader sanctions, including restrictions on technology transfers and chipmaking tools, have crippled China’s high-tech ambitions, forcing a costly pivot to self-reliance that strains resources further. This pressure is evident in Beijing’s desperate countermeasures. Ahead of anticipated talks with Trump, China has tightened export controls on rare earths—critical minerals used in everything from smartphones to military hardware—requiring licenses for products containing even 0.1% Chinese-sourced materials. China dominates 70% of global rare earth mining and nearly all refining, a stranglehold Deng Xiaoping famously likened to the Middle East’s oil advantage. Past actions, like the 2010 blockade against Japan and 2023 tech export bans, demonstrate Beijing’s willingness to weaponize this leverage. Yet, these moves smack of desperation; while they disrupt U.S. supply chains—causing shutdowns like Ford’s Chicago factory in May 2025—they also invite further U.S. retaliation and accelerate efforts to diversify away from Chinese dependence.

China’s CRUMBLING economy gives the US MAJOR leverage in trade talks – Whatfinger Money Vid

Trump’s executive orders have funneled hundreds of millions into domestic production, including a $400 million Pentagon investment in MP Materials, aiming to reduce U.S. reliance from 70% on Chinese imports. The cumulative effect is a China increasingly isolated and economically strained, giving the U.S. unprecedented bargaining power. In trade talks, Beijing is dangling massive investment packages while brandishing trade “cudgels” like rare earth restrictions, but experts see this as a sign of weakness. Trump’s tariffs have already forced some rebalancing in China’s economy, pushing it toward domestic innovation but at the cost of short-term pain. As one ex-Treasury official exposed, China’s faltering growth—coupled with Trump’s unyielding stance—shifts the balance, potentially extracting concessions on issues like intellectual property theft, market access, and even geopolitical flashpoints like Taiwan and Ukraine.

Chinese Premier Li Qiang’s recent pleas against “tariff strikes” and for “beneficial economic globalization” underscore Beijing’s anxiety. Social media echoes this sentiment, with users noting how U.S. sanctions have backfired on adversaries like Iran but are now hobbling China, prompting visa-free policies to lure Russian tourists amid Moscow’s own collapse One post quipped that Trump’s pressure is “squandering” Russia’s forces while giving the U.S. an excuse to ease sanctions post-withdrawal from Ukraine conflicts. Meanwhile, India’s outperformance—booming at 7.8% GDP in Q1 2025-26 despite similar tariffs—highlights China’s relative decline. As Beijing shifts to a “moderately loose” monetary policy and ramps up deficits to 4%—a record high—the cracks are widening. Trump’s strategy, blending economic warfare with diplomatic leverage, is proving effective, potentially securing wins for American workers and farmers through aid packages while China scrambles.

In this high-stakes game, the U.S. isn’t just competing—it’s dominating, turning China’s economic fragility into a strategic asset. If talks yield U.S. demands, it could mark the beginning of a new era where America reclaims its edge, leaving a humbled China to rebuild from the rubble of its own overreach. President Trump is truly leading America into a new golden age. He is almost destined to go down in history as our greatest president to ever live.

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