China has significantly increased its retaliatory trade restrictions with the United States. They recently increased restrictions on the export of strategically important minerals, Yuan noted, and suspended imports of a long list of American agricultural products. This new maneuver underscores a more worrisome trend: the growing friction between the two countries. Yet they are struggling against a difficult, convoluted backdrop of tariffs and trade negotiations.
China has retaliated by increasing tariffs on imports of US goods. These tariffs have been set as high as 125%. The China public holiday has begun. Given the timing, many government offices which would need to be able to respond immediately to outside questions will be closed. Nevertheless, Chinese officials are reportedly mulling whether to proceed with a new round of trade talks with the US.
The US has attempted to contact China multiple times through various channels. From the get-go, they were clearly willing to walk up to the line of talking. Beijing sees the current high tariffs imposed by Washington, which can reach up to 145%, as a significant barrier to building trust.
In an unusual public comment, an unnamed spokesman from one of the Chinese ministries involved in international affairs waded into the fray to stress China’s priorities.
“The tariff and trade wars were unilaterally initiated by the US; if the US side wants to talk, it should show its sincerity, and be ready to take action on issues such as correcting wrong practices and canceling the unilateral imposition of tariffs.” – Unnamed ministry spokesperson
China’s leaders are surely pleased to have seen comments from top Trump administration officials that appear to show a readiness to negotiate on tariffs. They view proposals that fail to tackle President Donald Trump’s massive tariff hikes as disingenuous.
“Saying one thing but doing another, or even attempting to engage in coercion and blackmail under the guise of talks, will not work on the Chinese side,” stated the unnamed spokesperson.
China appears ready to engage on these topics. It’s never once confused the legislative agenda it would like to see with its diplomatic red lines. The government is currently evaluating the situation while reiterating its firm stance on tariffs and the need for genuine negotiations.
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