China takes action to win the trade war as Trump escalates.

China is challenging the economy as Trump's 104% tariff takes effect, signaling a long-term trade war strategy fueled by the devaluation of the yuan and relentless countermeasures. Trump escalates, but China is playing to win—Experts see the path to war ahead China is sharpening its stance in the economic conflict with the United States, delivering what financial leader Nigel Green describes as a deliberate and strong message. On April 8, the CEO and founder of international financial consultancy Devere Group warned that recent policy signals from Beijing indicate a government preparing for a long-term trade war. The core point of that message is China's move to devalue the yuan, which Green describes as a carefully calculated move. He emphasizes: The weakening of the yuan is not simply the result of market mechanisms; Beijing has also warned Washington that they will take much stronger actions if the situation continues to escalate. In the face of escalating US-China trade tensions, Beijing has allowed the reference exchange rate of the yuan to surpass the symbolic threshold of 7.20 to the dollar for the first time since September 2023, signaling a shift in foreign exchange policy. The People's Bank of China set a fixed rate at 7.2038 on April 8, leading to a decline in the domestic yuan, despite improved investor sentiment. Analysts interpret this as a move towards a managed depreciation to support exports amid economic pressures, although a sharp devaluation still carries risks due to capital flight and failures in trade negotiations. President Donald Trump increased pressure with threats of a 50% tariff, causing China to announce retaliation and impose rare earth control measures. According to the White House press secretary, the additional 104% tariff will take effect at noon Eastern time on April 8 due to China's failure to lift retaliatory measures. Green dismissed the idea that Beijing would yield to the increasing pressure from the Trump administration. Instead, he emphasized the recovery strategy and counter-planning of the Chinese government. "This is now a war of endurance. Trump is ramping up the pressure, believing he can force concessions through threats." He contrasted this with Beijing's approach: However, Beijing is determined to prove that it will not back down. Instead of retreating, China is consolidating itself — isolating key industries, diversifying supply chains, and preparing policy weapons for a prolonged confrontation. Behind the scenes, both governments are proceeding cautiously, but Green has observed an increasing confidence from China. He stated that the timing and nature of the depreciation of the yuan reflects Beijing's serious stance, describing it as a calculated move rather than a short-term devaluation. Green characterized it as a clear signal to the White House that further escalation would have consequences. He added that the financial sector has adapted, with China signaling its readiness to use important economic tools if tensions persist. "Trump's White House should not confuse restraint with weakness. Beijing is demonstrating strategic patience, but there is actually toughness beneath the surface. If Washington continues to escalate, China's response will not be meek — it will be methodical, have broad influence, and be designed to maximize impact where it hurts the most," Green commented. He added that the global market is entering a phase where tactical actions, such as a weakening yuan, are not just financial signals but also part of a broader geopolitical strategy. Devere's CEO advises investors to prepare for long-term changes, emphasizing that China is planning for sustainable transformation. He stated that structural changes in global trade could shape the next decade. Green concluded with a clear forecast: Beijing is setting the terms for confrontation. Washington may choose to escalate, but will not do so without facing increasingly sophisticated countermeasures. China is no longer trying to avoid a trade war at all costs — they are preparing to win if forced. ⚠️IMPORTANT! If you like this topic, don't forget: • Follow me @blogtienso for more interesting content! • Like, share and leave a comment 💖 and don't forget to DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)