In response, China’s commerce ministry has released a fiery denunciation. They’re pushing back against what they see as the United States’ “unilateralism and protectionism.” This action comes amid a bitter trade war between the two economic giants. The spotlight has been on tariffs, which are at historic highs.
The ministry statement accused the US of “political blackmail”. They charged that it was attempting to strongarm other countries into limiting trade with China in exchange for tariff exemptions. Chinese foreign ministry officials have repeatedly threatened that these moves endanger Chinese national interests. They blow up the stability of the entire international trading system. The ministry stated, “Where the strong prey on the weak, all countries will become victims.”
Further complicating the situation, China has remained unequivocally against any deal that they perceive to come at their expense. The statement from the commerce ministry emphasized that “China firmly opposes any party reaching a deal at the expense of China’s interests.” Now, they sent one last and obvious warning, the clearest one yet – make a deal that the US has struck with China. Look for “resolute and reciprocal” retaliation back in kind.
The rapidly escalating trade dispute between China and the United States has led to a tit-for-tat barrage of tariffs. These tariffs have skyrocketed up to 145% on Chinese exports to the US and up to 125% on US exports to China. These tariffs are part of President Donald Trump’s strategy dubbed the “liberation day” campaign aimed at reshaping international trade dynamics. Trump recently confirmed that the US is engaged in talks with China regarding these tariffs, stating, “I think we’re going to make a very good deal with China.”
In response to these overtures from the US, China so far has not accepted any invitations to talk with Washington. Rather, it has demanded fruitful conversations to end what’s become a five year-old standoff. The commerce ministry remarked, “Appeasement will not bring peace, and compromise will not be respected … To seek one’s own temporary selfish interests at the expense of others’ interests is to seek the skin of a tiger.”
These debates expose a new concern in China. They worry efforts to build a new global order will lead to a return of chaotic “law of the jungle” world. The ministry’s statement implies that such a scenario would harm all nations involved, reiterating that “if such a situation occurs, China will never accept it and will resolutely take reciprocal countermeasures.”
Our trade dialogue has certainly picked up steam! Both nations are at a historic crossroads that could reset their competitive bilateral economic ties and shake global trade for years to come.