As new tariffs loom from the U.S. administration, China finds itself in a precarious position with limited options for retaliation. Recent analyses indicate that Chinese companies have successfully navigated previous tariffs and could potentially do so again. However, the intensifying trade war is causing a significant decline in U.S.-China trade relations, with trade hitting a WTO-era low. Concerns over the economic impacts of the ongoing trade tensions are palpable, as China’s reliance on U.S. trade reaches a new low. Despite these challenges, there are indications that China is considering alternative strategies to counter the U.S. tariffs, although some experts warn that these efforts may backfire. The global trade friction index remains elevated, reflecting the ongoing uncertainties in the international market.