China, U.S. relations, sharp attacks have continued post-tariff de-escalation. This month, WTO leaders gathered in Geneva, Switzerland to lower tariffs. As mighty as those undertows are, trade tensions have escalated dramatically in just the last two weeks. The unprecedented instability of the China-U.S. relationship is underscored by the ugly fights that are currently roiling the world’s two largest economies.
On Thursday, Chinese Vice Foreign Minister Ma Zhaoxu and US Deputy Secretary of State Christopher Landau discussed things over the phone. They zeroed in on sensitive sectors affecting their trade with each other bilaterally. The call, as relayed by the Chinese Foreign Ministry, highlighted both sides’ recognition of the importance of sustained communication even in an environment of deepening differences. After the call, both countries committed to staying in touch and working to resolve their disputes.
Throughout the call, stakeholders on both sides shared ideas surrounding a number of important issues related to trade. Just last week, China’s Ministry of Commerce denounced the latest US moves, calling them “unilateral bullying.” This wording is clearly meant to indicate Beijing’s annoyance at what they see as US attempts — via planned escalation — to derail productive negotiations which are currently underway. The Chinese government broadly blamed the US for blocking meaningful progress in talks that are vital to both nations.
In another sign of escalating tensions, the US government has been warning companies against using Chinese-made AI chips. This alert is aimed directly at chips provided by Huawei Technologies. China has vocally opposed this step. It claims that these operations are not only unjust but harmful to the public because they raise tensions.
The climate around these transactions is one of mistrust. There’s a competitive spirit between China and the US. Though each country has publicly pledged to keep communication open, a look at their respective recent moves suggests there is still much hard work to be done. The debate over the criticisms and accusations reveals how much work both sides must do. Only under those conditions can they expect true reconciliation.