Tussling Over Trade Deals
Countries advised to reconsider potential U.S. trade agreements that may cause China financial detriment.
In a Saturday evening statement, China's commerce ministry made it crystal clear that it wouldn't stand idly by while other countries struck deals with the U.S., compromising China's interests. The ministry threatened stern countermeasures if any such deals were to materialize.
Countries rushing to strike deals with the U.S. to dodge punitive tariffs were advised to show some backbone, according to the ministry. Only by doing so could they effectively protect their rights and interests.
China, however, welcomed all parties to negotiate trade disputes with the U.S. on equal footing. The ministry called for unity and adherence to fairness and justice when trudging through the maze of international trade rules.
During the past few years, the United States has imposed a broad 10% tariff on almost all Chinese goods under the International Emergency Economic Powers Act (IEEPA), April 2025. Additional tariffs were slapped on select categories, including a 20% tariff on imports related to fentanyl precursor controls and a 25% tariff on products covered by Section 301 measures, targeting practices like intellectual property theft.
In response, China retaliated with an average 10% tariff on U.S. goods and specific tariffs ranging from 10% to 25% on goods such as coal, LNG, agricultural products, and metals, along with anti-dumping duties of up to 74.9% on certain engineering plastics.
Exploratory talks concluded in London, June 2025, resulting in a framework agreement between the U.S. and China, pending final approval by Presidents Trump and Xi. China reiterated its commitment to honoring the agreement to stabilize trade relations. The Chinese foreign ministry spokesperson, Lin Jian, stressed the need for both sides to respect the negotiated terms, suggesting China's willingness to maintain the tariff truce and collaborate on trade issues.
However, there are still areas of friction, such as China's export controls of rare earth elements and the U.S.'s demand for guaranteed semiconductor access. Nevertheless, China seems open to addressing these concerns, displaying a pragmatic approach to de-escalate the tariff conflict and steer clear of more economic turmoil.
Diplomacy efforts continued as China reiterated its commitment to honoring the trade agreement, stressing the need for both parties to respect the negotiated terms. The Chinese foreign ministry spokesperson, Lin Jian, suggested China's willingness to maintain the tariff truce and collaborate on trade issues. However, issues such as China's export controls of rare earth elements and the U.S.'s demand for guaranteed semiconductor access remain areas of friction, indicating that finance and business sectors within politics and general-news will continue to grapples with resolving these disputes.
