'The West Is Scared' Of China—And It's Starting to Show

The fear is no longer whispered—it's policy. Western governments are scrambling to contain China's growing leverage, not because of what Beijing has threatened, but because of what it's quietly starting to do.

This week, the Dutch government took the extraordinary step of seizing control of Nexperia, a Chinese-owned chipmaker—an act of economic intervention that signals rising panic over China's grip on critical technology.

In Washington, the anxiety is just as palpable. After posting confrontational messages about China into last weekend, President Donald Trump abruptly softened his tone on Sunday—prompting commentators such as Peter Schiff to reiterate the critical refrain that “Trump Always Chickens Out.”

Macro strategist Andreas Steno Larsen summed it up in an X.com post:

"There are signs that the West is scared that China is serious about curbing re-exports this time around."

The timing is telling. The Dutch move, paired with Trump's rhetorical retreat, suggests a broader pattern: Western governments are bracing for impact. Not because China has retaliated—but because it might. And this time, it's not just about tariffs. It's about re-exports, chip dominance, and strategic leverage.

A New Phase Of Economic Warfare

China's tightening grip on re-exports—especially in semiconductors and advanced tech—signals a shift from passive trade partner to active power broker. Western economies, which have long been dependent on Chinese supply chains, are now scrambling to restructure, reshore, and rethink.

Beijing’s toolkit for economic pressure is vast and increasingly strategic. It can restrict access to rare earth minerals, tighten export controls on advanced semiconductors, weaponize its dominance in battery and solar supply chains, or impose informal boycotts through state-influenced consumer sentiment. The Asian nation can also slow foreign investment approvals, delay regulatory licenses, or quietly squeeze Western firms operating in China—all without issuing formal threats. The ambiguity is part of the leverage.

The Nexperia seizure is a symptom of that scramble. So is Trump's tone shift. And so is the growing chorus of Western analysts warning that China's next moves may be sharper, faster, and more targeted than ever before.

This isn't just a trade story. It's a geopolitical recalibration. And the fear? It's not irrational. It's overdue.

Read More:

• China’s Silence Is Scarier Than Tariffs—5 Ways It Could Hit Trump Hard

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