As the United States imposes additional tariffs, China is attempting to build international support in hopes of persuading Washington to step back. However, this initiative has seen limited progress, with numerous countries hesitant about aligning themselves against the primary focus of President Donald Trump’s trade conflict.
Amid the collapse of global markets, Trump announced on Wednesday that he would suspend his tariffs on most countries for a period of 90 days, stating that numerous nations were eager to engage in negotiations for better terms.
China has declined to engage in negotiations, stating it will "wage battle until the very end" in the trade dispute. This led President Trump to increase the tariff rates on Chinese imports to 125%. In response, China imposed tariffs of 84% on American products, effective from Thursday.
Trump's move was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China.
"As righteousness prevails, it garners widespread backing,” stated Foreign Ministry spokesman Lin Jian during a regular press conference on Thursday. “The United States won’t secure public endorsement and will ultimately face defeat.”
So far, China has concentrated on engaging with Europe, where a telephone conversation between Premier Li Qiang and European Commission President Ursula von der Leyen conveyed a positive signal to the global community.
According to the official Xinhua News Agency, "China expresses readiness to collaborate with the European Union in implementing key agreements made between Chinese and EU leaderships. This includes enhancing dialogue and interaction as well as expanding trade, investment, and industrial partnerships between China and Europe."
This was succeeded by a videoconference on Tuesday involving China’s Commerce Minister Wang Wentao and European Union’s Commissioner for Trade and Economic Security Šefčović, where they discussed the U.S. "reciprocal tariffs."
Wang said the tariffs "seriously infringe upon the legitimate interests of all countries, seriously violate WTO rules, seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order," Xinhua said.
Wang stated that this represents a standard instance of unilateralism, protectionist policies, and economic intimidation.
Wang stated that China is ready to address disputes via dialogue and negotiations, however, should the U.S. persist with its approach, China is prepared to go all out.
Wang has engaged in discussions with the ten members of ASEAN, whereas Li, who serves as the Premier, has held meetings with prominent business figures. According to Xinhua’s report, Li stated that China “has conducted a comprehensive assessment and stands ready to address various uncertainties, planning to implement phased policy measures based on the evolving circumstances.”
In Hong Kong, the representative from China's Foreign Ministry local branch restated Beijing’s refusal to engage in talks with the U.S. given the present circumstances.
"We have to seriously inform the United States: A tariff-wielding savage who tries to coerce nations into pleading for compassion will never receive such a plea from China," Huang Jingrui stated in an opinion piece published in the South China Morning Post.
If the United States genuinely wishes to initiate a conversation with China, it must “promptly correct its erroneous actions and embrace an appropriate stance characterized by equity, dignity, and reciprocal advantage,” Huang stated in his writing.
Even though they are dissatisfied with Washington, not every country wants to align with China, particularly those nations that have had conflicts with Beijing in the past.
Australia speaks independently, and our stance is that open and equitable trade benefits us," stated Australian Prime Minister Anthony Albanese to journalists. "While we interact with various nations, we advocate for Australia’s national interests and maintain our autonomy.
In 2020, China implemented various formal and informal trade restrictions on Australia following the country’s request for an independent investigation into the origins of the COVID-19 pandemic, which had displeased Beijing.
India allegedly rejected a request from China for collaboration, and even Russia, usually regarded as China’s nearest strategic ally, was excluded from the Trump administration’s tariffs. Taiwan's Foreign Minister Lin Chia-lung stated on Wednesday that his government is getting ready to engage in discussions regarding tariffs with the United States.
The United States applied a 32% tariff on goods coming from Taiwan, which is both an important trading ally and a key security partner. Taiwan predominantly supplies advanced semiconductor chips sought after by the U.S. and many other countries, maintaining a consistent trade advantage over Washington for years.
Yet, Southeast Asian nations such as Vietnam and Cambodia find themselves in a particular bind. They benefited when factories moved to their countries from China due to rising costs. They are being hit by punishing tariffs but have few buyers outside the U.S. and are already operating on razor-thin margins.
Previously, Trump had rejected the idea of pausing, but the controversy surrounding his tariff policies will persist as the administration moves forward with country-specific talks. In the meantime, these nations will face lower tariffs at a rate of 10%, instead of the higher rates that were initially proposed.
It remains uncertain what additional actions China might pursue; however, according to Foreign Ministry representative Lin, they stated that China “won’t remain passive as the rightful benefits and interests of the Chinese populace get eroded, nor will we permit international trade norms and the global trading framework to suffer.” Alternative non-tariff measures could encompass restrictions on Hollywood films, U.S.-based legal practices, and various service sector transactions.
On Thursday, global financial markets experienced significant gains, with Japan’s key index rocketing upwards by over 9%, amid investor approval of Trump's choice. The German DAX also saw an initial rise exceeding 8%; subsequently, it climbed further to reach 21,141.53, marking a gain of 7.5%. Meanwhile, France’s CAC 40 advanced by 7.2% to stand at 7,360.23. In the UK, the FTSE 100 spiked dramatically by 5.4%, settling at 8,090.02.
Nevertheless, U.S. futures showed slight declines, and oil prices followed suit by dropping as well. Meanwhile, Chinese stocks experienced smaller increases due to further hikes in tariffs being imposed on each other’s goods exported between the two nations.
The outlook for the S&P 500 indicated a decline of 0.4%, whereas the forecast for the Dow Jones IndustrialAverage suggested a slight drop of 0.2%.
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