As 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 deal with the situation without the U.S., and we hope to survive for another 5,000 years."

China's retaliatory tariff 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 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 cause a global recession, others are watching Beijing's next move regarding Taiwan. International relations professor Zhiqun Zhu from Bucknell University in Pennsylvania commented:

"If the current tax rate is maintained and China can get through this tough period, this will certainly boost Beijing's confidence in the face of potential Western sanctions in a future Taiwan 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 in light of Trump's tariffs, referring to Beijing as the "EU's partner."

Capital flows into Bitcoin

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

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

"CNY deval = the story of China's capital flight 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 at the end of Friday that the Federal Reserve "is ready to help stabilize the market if needed," and Hayes responded:

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