The ongoing trade tensions between the United States and Asian nations may prompt a fresh business opportunity for Western firms seeking to access markets in the East.
With a nominal GDP of $19.23 trillion USD in 2025, China possesses the second-largest economy in the world, and its relationship with major trading partners outside the United States could be set to transform as nations come to terms with the impact of President Donald Trump’s reciprocal tariffs.
While negotiations with China remain ongoing following an agreement on a trade framework, President Trump’s recent flurry of 14 letters warning world leaders that tariffs ranging from 25% to 40% would be imposed from August 1, 2025, threatens to create an imbalance across historical trading partners.
Japan and South Korea have been hit with 25% tariffs on goods imported by the US, and we’re already seeing evidence of strengthening diplomatic bonds between the impacted nations and China.
In an act of ‘panda diplomacy,’ Japan and China appear to be building a stronger symbolic bond with the prospective loan of the endangered bears to a Japanese zoo.
According to Hiromi Murakami, a professor of political science at the Tokyo campus of Temple University, loaning pandas in this case represents a bargaining chip as both nations attempt to strengthen their relationship at a time when Trump’s tariffs are forcing more Asian nations to rethink their trade deals.
As a result, Western business leaders may identify an opportunity to capitalize on in moving into Asian markets via China. At a time when the United States is undergoing its most radical trade shake-up, the fallout could see a strengthened trading bloc throughout East Asia.
China’s Growing Appeal
China’s attraction to global businesses is likely to be strengthened as the renminbi (RMB) grows in its adoption as a currency for international trade, cross-border investment, and settlement.
Already, the currency’s growing internationalization has shown plenty of increasing adoption metrics, such as its share of SWIFT payments, which grew to 3.5% in April 2025, up from 2% as recently as two years ago.
Crucially, by the end of 2024, the RMB accounted for 6% of global trade finance, representing a significant rate of growth from under 2% the year before.
This acceleration in adoption shows that the currency is becoming the preferred tender throughout many emerging markets and key global trade corridors, making it a far stronger local currency for businesses with an international presence to use.
The strengthening RMB appears to be part of a conscious effort to accelerate the internationalization of the currency.
According to a recent New York Times report, the People’s Bank of China Governor, Pan Gongsheng, has suggested that the world can benefit from a more diversified global monetary system, suggesting that the renminbi fits the bill.
The Straits Times has also suggested that Chinese authorities are undertaking a sweeping campaign to bolster the RMB’s role in global finance, which includes the expansion of China’s Cross-Border Interbank Payment System (CIPS) to offshore RMB centers in Africa, the Middle East, and Central Asia.
Mindful of the renminbi’s threat to the dollar’s dominance, Trump has threatened to impose additional 10% tariffs on any nation that’s deemed to have aligned itself with the policies of the BRICS alliance. But in a landscape where more countries are being priced out of trade with the United States, China may be well-positioned to adopt a more central role when it comes to importing and exporting.
Supporting Business Innovation
China’s position as a trading powerhouse in Asia and among BRIC nations offers businesses an opportunity to enter vast new markets, but it also helps to open the door to the country’s innovative industries.
Known for its world-renowned renewables industry, China’s position as a leading global innovator has already led to more Western businesses experimenting with its DeepSeek large-language model AI platform.
While evidence suggests that China may not have overtaken Western innovation, it has not only pulled ahead in some key areas but is expected to equal or surpass its counterparts within a decade in many other areas.
Access to competitively priced innovative markets can serve as a tipping point for forward-thinking leaders seeking to register a company in China. With an artificial intelligence boom period well underway, we may see more Western businesses seeking to grow their operations within China’s tech sector as an efficient alternative to the United States or Europe.
Tariffs as a Catalyst for Change
As the Trump administration’s 90-day delay to the United States’ reciprocal tariffs reaches its conclusion, we’re set to see more trade upheaval among former trading partners.
For businesses seeking to expand their operations and future-proof growth despite choppy trade waters, the lure of registering in China will be greater than ever before.
With a renewed focus on boosting the renminbi’s appeal, a potentially strengthened regional and emerging market trading bloc, and an innovative tech sector all holding exceptional appeal for business owners, China may grow to rival the United States among decision makers across various industries.
