When China reacted to Trump's latest round of tariffs on Friday, announcing a 125% tariff on all U.S. goods, the Vice Chairman of the Center for China and Globalization based in Beijing, Victor Zhikai Gao, commented:

'We don't care! China has been here for 5,000 years. Most of the time, without the U.S., and we have survived.'

When pointing out that China 'will lose the U.S. market', which accounts for 15% of total trade value, he added:

'If the U.S. wants to bully China, we will have to handle the situation without the U.S., and we hope to survive another 5,000 years.'

China's retaliatory tax increase came right after President Donald Trump raised tariffs on Chinese imports by 145%, escalating the already tense trade conflict between the two global superpowers. Trump's tariffs have had a profound impact on the international financial markets, with major stock indices significantly declining since 'Liberation Day' on April 2, with a slight recovery reported on Friday afternoon.

Trump's tariffs are pushing countries closer to China

While many economists are concerned that Trump's tariffs will trigger a global recession, others are keeping an eye on Beijing's next move regarding Taiwan. International relations professor Zhiqun Zhu from Bucknell University in Pennsylvania commented:

'If current tax levels are maintained and China can get through this tough period, it will definitely boost Beijing's confidence in facing potential Western sanctions in a future cross-strait war.'

Like most countries, the United States does not officially recognize Taiwan as an independent nation. However, Washington opposes any unilateral actions that change the current status quo and remains committed to providing weapons to support Taiwan's self-defense capabilities.

Meanwhile, European Union leaders are reportedly planning to visit Beijing to attend a summit with Chinese President Xi Jinping at the end of July. This news comes after Spanish Prime Minister Pedro Sanchez called for Europe to build closer ties with China ahead of Trump's tariffs, labeling Beijing as 'the EU's partner.'

Capital flowing into Bitcoin

In the context of rising geopolitical tensions and market volatility, CryptoSlate has reported that Bitcoin is increasingly seen as a risk-hedging instrument for the market. Its price has remained relatively stable while the stock market has plummeted, highlighting the significant disconnect between Bitcoin and stocks and Bitcoin as a 'risk' asset.

One hypothesis suggests that China may devalue its national currency, the yuan. If the PBOC (People's Bank of China) takes this step, BitMEX founder Arthur Hayes believes that capital will flow into Bitcoin. He commented:

'CNY deval = the story of capital flight from China will flow into $BTC. It worked effectively in 2013, 2015, and may work effectively in 2025.'

Quantitative easing, also known as 'printing money', is an unusual action that helps Bitcoin and the cryptocurrency market benefit from excess liquidity.

According to Watcher Guru, a senior Fed official stated late Friday that the Federal Reserve 'is ready to help stabilize the market if needed,' and Hayes responded:

'And that's it, everyone. Buy everything!'