For decades, China has held a simple advantage in negotiations with the United States by making itself economically indispensable. Beijing did so by leveraging its position in global supply chains critical to U.S. economic security. Washington weakened its negotiating position by pursuing energy policies that left America exposed to Chinas strategy. President Trumps economic and trade actions have changed that calculation. As Trump prepares to sit across from in Beijing, the U.S. is positioned to win.
The foundation of this strength starts at home with growth. Trumps deregulatory agenda and unleashed investment in American industry after years of stagnation. His administration recognizes that a productive and growing American economy is not just good for workers; it also serves as vital geopolitical leverage that allows the U.S. to withstand the CCPs pressure. While Chinas growth has been weakening, the U.S. economy has been remarkably resilient.
This is thanks, in part, to Trumps push to unleash domestic energy production, which not only creates good-paying jobs but also ensures the U.S. economy has the resilience required to weather turmoil abroad.
Not too long ago, the U.S. was dependent on the rest of the world for oil and natural gas. Now, Trumps policies have enabled the U.S. to become an energy powerhouse and net energy exporter. While disruptions to still hurt American consumers, the impact pales in comparison to the pressure on Beijing, which has relied on energy imports from countries such as Iran and Venezuela to power its manufacturing dominance. As these sources are cut off, Xi Jinping finds himself in a weaker position.
Trumps understanding of manufacturing as a key source of national power underscores this agenda. A centerpiece of President Trumps China playbook has been replacing the North American Free Trade Agreement, or NAFTA, with the United States-Mexico-Canada Agreement, or USMCA. Unlike NAFTA, USMCA better protected workers and was designed to secure our supply chains after they had become dangerously dependent on China.
Sixteen of 21 key manufacturing sectors have grown exports under USMCA. For key industries such as petroleum, chemicals and wood, U.S. exports not only grew under USMCA but also grew much faster to Canada and Mexico than to the rest of the world. A key example is U.S. vehicle suppliers. By requiring that 75% of a vehicles value originate in North America, the agreement enabled manufacturers to restructure supply chains away from Chinese factories and back onto this continent. U.S. vehicle parts production now stands at $349 billion annually, more than $37 billion above 2019 levels. The automotive supplier industry has added 61,000 jobs and now employs over 930,000 workers across all 50 states. Nearly one-third of all U.S. exports flow to Canada and Mexico within this integrated framework.
This supply chain resilience removes Beijings leverage at the negotiating table. Chinas strategy has always been centered on embedding Chinese production so deeply into global supply chains that any confrontation becomes too costly for the U.S. The USMCA directly undermines that strategy. When American manufacturers can source components from trusted North American partners operating under shared rules, Chinas chokehold weakens.
As Trump prepares to travel to China, he will meet with Xi with unprecedented economic leverage, underpinned by a domestic U.S. economy reinvigorated by deregulation; a North American manufacturing base producing at record levels; and a trade architecture that has materially reduced dependence on Chinese industrial capacity.
China now produces roughly 30% of the worlds manufactured goods while consuming only about 18%. That surplus must go somewhere, and it typically gets , with state subsidies underwriting the losses. For years, that strategy worked because there was no coherent Western alternative. President Trumps North A
