China has sharply criticized former President Donald Trump’s plan to impose additional 100% tariffs on Chinese exports, warning of potential countermeasures and blaming the U.S. for worsening relations between the two nations. The statement from China’s commerce ministry asserted that since recent trade discussions in Madrid, the U.S. has continuously enacted new restrictions, which includes placing Chinese firms on a trade blacklist.
China’s position in this escalating tariff conflict has been clear: while it does not seek a trade battle, it is also prepared to defend its interests if provoked. This latest round of trade tensions comes alongside Trump’s announcement that he would implement “large scale” export controls affecting nearly every product made in China, including essential software. These measures are expected to take effect on or before November 1.
In response to these developments, the commerce ministry reiterated that using high tariffs as a bargaining chip is not constructive. It cautioned that should the U.S. continue down this path, China will take resolute actions to protect its own rights and interests. The U.S. president’s threats follow recent trade actions from Beijing, which included tightening export controls on rare earth materials and launching an antitrust investigation into Qualcomm, a major U.S. chipmaker.
The worsening climate was characterized further by an uptick in fees imposed on American ships docking at Chinese ports. Many observers believe these moves by China are intended to bolster its position ahead of a proposed face-to-face meeting between Trump and Chinese President Xi Jinping in South Korea. While Trump initially doubted the meeting would proceed, he later suggested that it is likely to take place.
China has sought to reassure its own businesses and the global market, asserting that the implications of its new export controls on supply chains would be minimal. It emphasized that civilian applications compliant with regulations would receive approval. The commerce ministry criticized the U.S. for its longstanding practice of “abusing export controls” and misusing national security as a rationale.
Trump’s announcement on social media signals a potential end to the détente that had characterized the U.S.-China trade relationship since a truce was reached in Geneva in May. The two countries had come precariously close to a virtual trade embargo, with Trump previously imposing steep tariffs and Xi retaliating in kind.
Analysts are weighing the implications of this trade war as a competition of equals. Yanmei Xie, a specialist in geopolitical affairs focusing on China, noted that while the U.S. possesses leverage over trade, China may have the advantage in the corporate sector due to the significant number of American companies operating within its borders, including high-profile firms like Apple and Tesla.
Cory Combs, an associate director at consultancy Trivium China in Beijing, suggested that Trump’s latest actions, particularly threats to withdraw from negotiations with Xi, may prompt China to reconsider its approach to the trade standoff. He indicated that the Chinese leadership might be struggling to define their next steps amidst this rapidly evolving situation.
Overall, the situation remains fluid, with both countries navigating a complex landscape as they grapple with the implications of an intensifying trade conflict and the delicate balance of their economic interdependencies.
