China prepares for full-fledged trade war with the US after Trump imposes tariffs - WSJ
Kyiv • UNN
China is stepping up its response to US tariffs by expanding the list of goods subject to tariffs and restricting mineral exports. Trump reacted to this deterioration of the situation.
China continues to step up its response to new tariffs imposed by the administration of US President Donald Trump.
This is reported by The Wall Street Journal, writes UNN.
Details
After the introduction of 34% additional duties on Chinese goods, Beijing responded by expanding the list of American products subject to additional duties and restricting the export of certain rare earth minerals. The PRC also added American companies to its trade blacklist and launched an antitrust investigation into DuPont's Chinese operations.
Trump's response to the corresponding measures showed that the situation would only get worse. In a post on social media, Trump wrote:
China did the wrong thing, it panicked - that's the only thing they can't afford to do!
Beijing was cautiously optimistic in the early days of the Trump administration. Xi Jinping sent a high-ranking envoy to Trump's inauguration, which was seen as an opportunity for fruitful communication. Although Trump threatened to impose tariffs on China during the election campaign, he refrained on the first day.
Trump's tariffs: China called on Washington for "equal consultations"05.04.25, 13:25 • 17965 views
Trump has made it clear that he is open to a deal with China, and Beijing hopes to explore an option based on what China is willing to offer, such as more Chinese purchases of American products and more Chinese investment in the United States.
However, as the media writes, in the following weeks, wherever high-ranking Chinese officials tried to contact the new administration, they only encountered closed doors.
Foreign Minister Wang Yi tried to meet with Trump's National Security Advisor Mike Waltz in February, when he was in the United States for a meeting at the UN, according to people consulting with senior Chinese officials. Wang, who hoped to restore the line of communication he had with Waltz's predecessor, Jake Sullivan, achieved nothing with the Trump team.
The shocking move by the US to raise tariffs on Chinese goods by 34% further complicated relations between the two countries. This increase brought the total level of import duties on Chinese products to 76%.
According to Chad Bown, a senior fellow at the Peterson Institute for International Economics, this is significantly higher than the previous 20% duties that were introduced during Donald Trump's first term in 2018, which means a more than twentyfold increase in duties.
This is tantamount to announcing a "strategic break" with China. Can we find a way to negotiate under such maximum pressure? The lack of communication between the two sides can complicate this
Some political advisers in Beijing described the stunned reaction inside the Chinese system to Trump's latest tariff hikes. This, according to advisers, raises the question of whether Beijing is capable of effectively negotiating with Trump to ease pressure on the Chinese economy and prevent a deeper rift with the United States.
The Trump administration sets the tone for the agenda. .. Beijing is almost entirely in a reactive position
Some foreign policy and trade analysts say Beijing acted wisely by waiting, given that Trump also significantly increased import duties for traditional allies and other major trading partners, which increased the threat of a global response to the US that could benefit China.
According to people who consult with senior Chinese officials, a key reason for Beijing's defensive stance is that while Beijing is exploring the possibility of a trade deal with Trump, Xi does not want to be seen as an overly assertive supporter.
Trump and Xi are locked in a paradox of pressure and pride
"Trump's strategy combines maximum pressure with sudden diplomatic initiatives - he sees leverage and engagement as complementary. Xi, on the contrary, is methodical and risk-averse, relying on procrastination and discipline."
Let us remind
From April 10, China will introduce a duty of 34% on imports of all goods from the USA. According to reports, this step is part of the response to Trump's introduction of double-digit tariffs on Chinese goods in honor of "Liberation Day". The new tariff corresponds to the "matching" US tariff rate of 34% on Chinese exports.