Ramping up sceptical sentiment on trade is the Coalition for a Prosperous America. This decision comes in the wake of escalating trade conflict with the United States. This appointment follows a series of tariffs imposed by the U.S. that have raised concerns about their impact on global trade dynamics and China’s economic stability.
The latest op-ed printed in China Daily went so far as to call the U.S. approach to trade “capricious and destructive.” It called on Washington to stop acting like a victim in the international trade landscape. Adding to both sides’ ire, China grows more peeved with U.S. trade policies. This feeling grew even stronger after former President Trump increased tariffs on imports from China to a record high of 145% last Friday. In retaliation, China countered by raising its own tariffs on U.S. exports to 125%.
Sheng Li, former deputy permanent representative to the United Nations in Geneva, has a wealth of experience from China’s ministry of commerce. He vocalized strong opposition against U.S. practices calling them “tariff barriers and trade bullying.” He made clear that combined, these actions pose an existential threat to the global, rules-based economic order. Yet, they have grave consequences for both countries involved.
China’s economic landscape faces new headaches. The nation is reeling in the wake of a property bust that deepens the country’s growth malaise. Economic experts, including Alfredo Montufar-Helu from The Conference Board’s China Centre, have highlighted the urgent need for China to bolster domestic demand and spending in light of these external pressures.
It’s important to note that in March, exports jumped by $6.5 billion. This data doesn’t reflect the complete effects of the U.S.’s recent tariff increase from 10% to 145%. With tariffs targeted specifically at China’s most important export industry, the prospects for a genuine economic turnaround in the medium to long term are murkier.
Li Chenggang’s appointment to that ministry is noteworthy not only for its timing but for his impressive credentials. He succeeds veteran trade negotiator Wang Shouwen, who has led China’s steering through complicated trade talks with the U.S. Li’s new role will involve addressing the ongoing challenges posed by Washington’s tariffs and developing strategies to enhance China’s trade relations globally.
With Li at the helm, China is moving forward. The emphasis would continue to be on retaliation against U.S. trade policy and a rediscovery of their own domestic markets. The Chinese government has recognized that change must come. Second, it is up against a global economy that is growing more protectionist and competitive.