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US-China Relations - 14. page

China Suggests COVID-19 Started in the U.S. and Calls for U.S. Origin Tracing Inquiry

People’s Daily, the official newspaper of the Central Committee of the Chinese Communist Party, recently published an official commentary under the pen name “Zhong Sheng” (钟声 – a homophone for “China’s Voice”), outlining China’s position on COVID-19 origin tracing and urging a shift in investigative focus to the United States.

The article referenced a white paper released on April 30 by China’s State Council Information Office, titled “China’s Actions and Position on COVID-19 Prevention, Control, and Virus Tracing.” It said the paper presents China’s contributions to global virus origin tracing and pandemic cooperation, supported by detailed data and scientific evidence.

The commentary states, “A growing body of research suggests that the virus originated outside China. Studies from U.S. institutions, including the Centers for Disease Control and Prevention (CDC) and the National Institutes of Health (NIH), have indicated the presence of COVID-19 clues and positive samples in several regions of the United States prior to the outbreak in Wuhan. This warrants a comprehensive and in-depth investigation into the origins of COVID-19 in the U.S.”

It goes on to criticize the U.S. government for allegedly concealing relevant findings and politicizing the origin tracing issue: “By turning a blind eye to evidence and shifting blame onto China, the U.S. has obstructed scientific efforts and compromised global public health cooperation.”

The article concludes with a call to action: “To better prevent future outbreaks, the U.S. – as a major global power – should no longer remain silent. It must address international concerns, share early case data with the World Health Organization, and provide a responsible explanation to the global community.”

Also on April 30, a spokesperson from China’s National Health Commission reiterated these points at a press briefing in Beijing, emphasizing that future origin-tracing efforts should focus on the U.S. The official noted that multiple studies suggest the outbreak in the U.S. may have preceded both the publicly acknowledged timeline and the initial outbreak in China, underscoring the need for a thorough investigation.

Sources:
1. People’s Daily, May 1, 2025
http://world.people.com.cn/n1/2025/0501/c1002-40472111.html
2. Sohu, April 30, 2025
https://www.sohu.com/a/891019906_121443915

CBN: China’s April Manufacturing PMI Reflects Tariff War Pressures

China Business Network (CBN) recently reported that China’s manufacturing sector showed signs of strain in April, as the Manufacturing Purchasing Managers’ Index (PMI), released by the National Bureau of Statistics, dropped to 49.0 percent – falling into contraction territory and signaling growing vulnerability to external shocks.

The April figure marked a 1.5 percentage point decline from March. Sub-index data revealed weakening in both supply and demand, a sharp drop in external demand, and persistently low price levels. On the production side, the production sub-index fell to 49.8 (down 2.8 points), while the new orders sub-index dropped to 49.2 (down 2.6 points). The new export orders sub-index declined sharply to 44.7 – a 4.3 point fall and the lowest level in nearly a year – highlighting the mounting effects of ongoing tariff disputes.

PMI readings across enterprise sizes all remained in contraction: large enterprises at 49.2, medium at 48.8, and small at 48.7, reflecting month-on-month declines of 2.0, 1.1, and 0.9 points, respectively.

China’s experts noted that effective domestic demand remains insufficient. To address this, they called for accelerating the issuance of local government special bonds and ultra-long-term special treasury bonds. They also urged the timely introduction of new policy-based financial tools and additional liquidity measures to boost domestic demand and stabilize foreign trade.

Source: CBN, May 1, 2025
https://www.yicai.com/news/102597081.html

People’s Daily: U.S. Is Unable to Learn the Success Story from China

People’s Daily republished a commentary from Science and Technology Daily, claiming that the U.S. will be unable to replicate China’s success in manufacturing:

The RAND Corporation recently published a commentary summarizing the development experience of China’s manufacturing sector. It suggested that, as the United States attempts to revive its domestic manufacturing industry, China’s experience might be beneficial for the U.S. No matter how biased American think tanks may be toward China, they cannot deny that China has achieved unprecedented success.

However, compared to China’s successful approach, the measures taken by the U.S. government to revive manufacturing can be said to be completely counterproductive.

China does not rely on tariffs, but the U.S. has made tariffs its primary tool to force the reshoring of manufacturing and to protect domestic industry. In fact, for America’s already weakened manufacturing sector, tariffs are not a cure but may instead become a poison.

Whereas the Chinese government is skilled at formulating long-term and predictable industrial plans, U.S. industrial policy swings sharply between the “left” and the “right,” with previous and current administrations vastly differing in their approaches.

While China is enhancing manufacturing productivity through robotics and intelligent automation, the U.S. government is, ironically, harming its own automation capabilities via imposing tariffs on Chinese goods. China plays a crucial role in the global robotics supply chain, with many key components dependent on Chinese production. For example, according to Morgan Stanley, about 56 percent of companies in the global humanoid robotics supply chain are located in China.

In terms of investment in scientific research and innovation, unlike the Chinese government’s continuous efforts, the U.S. government is cutting research budgets for institutions such as the National Institutes of Health (NIH), NASA, and the National Science Foundation (NSF).

Source: People’s Daily, April 27, 2025
http://finance.people.com.cn/n1/2025/0427/c1004-40469046.html

Top CCP Advisor on US Trade War

Jin Canrong (金灿荣), an international relations scholar and top advisor to the Chinese Communist Party’s leadership (including Xi Jinping), recently published an article commenting on U.S. tariffs against China. The article is titled “Trump still has two trump cards in his hand — China should be prepared to fight!” The following are key excerpts from his article.

The essence of the U.S. tariff hikes is psychological and political warfare – projecting a tough stance domestically while exerting pressure externally.

In recent days, the Trump administration has made contradictory statements regarding its tariff policy. It’s clear that there is a lack of internal coordination within the administration, as their rhetoric changes daily. This undoubtedly makes it difficult for us to tell which statements are genuine and to deal with them accordingly. If we invest significant effort, coordinate internally, and sincerely prepare for negotiations, only for them to change their position again, we will end up in an awkward situation.

In my view, China should focus on doing its own work well and respond to all changes with a consistent position. On the tactical level, we should fully support export enterprises (targeting the U.S.) in developing the domestic market or shifting to other markets.

Trump’s main target in the tariff war is China. Other countries might still have room to maneuver through concessions, but China won’t. Even if China makes concessions, the U.S. will not back off.

Moving forward, the U.S. can take additional actions against China:

  1. Expand the scope of tariffs to more sectors;
  2. Delist Chinese companies (Chinese stocks) from the U.S. capital markets;
  3. Impose taxes on assets owned by certain countries, including China, in the U.S. – direct asset seizure would be too extreme [to be feasible], but taxation is more feasible;
  4. Further restrict American companies from investing in China.

Among these, the second and third actions would have a relatively larger impact on China. We must be fully prepared and actively respond to this complex and severe tariff war.

Source: Guancha.cn, April 17, 2025
https://user.guancha.cn/main/content?id=1425107

China’s Foreign Affairs Spokesperson: US’ Fentanyl Tariff on China is an Act of Bullying

At the regular press conference of the Ministry of Foreign Affairs on the 25th, a reporter asked, “According to reports, U.S. government sources said that China and the U.S. are still negotiating on the fentanyl issue, but that China is ‘not sincere enough,’ and that the U.S. may impose more punitive measures to force China to take substantive action. What is China’s comment on this?”

Foreign Affairs Spokesperson Guo Jiakun responded, “Fentanyl is America’s problem, not China’s problem. The responsibility lies with the U.S. itself. The U.S. has disregarded China’s goodwill and unjustly imposed tariffs on fentanyl-related products from China. This is a typical act of bullying and has seriously undermined dialogue and cooperation between the two sides in the field of drug control. The U.S. should understand that smearing and attacking others cannot cover up its own failures, repaying kindness with resentment will not help solve the problem, and exerting pressure and threats is not the right way to deal with China.”

Source: Xinhua, April 25, 2025
http://www.news.cn/world/20250425/03e13f9564db473eb2380a358c87a93b/c.html

Have China and the US Discussed Tariffs? Chinese, US, and Korean Sources Tell Different Stories

There is an ongoing dispute between China and the United States over whether they have engaged in negotiations regarding tariffs. China has repeatedly denied any such discussions, while the U.S. has consistently affirmed that they have taken place.

1. Statements by the Chinese Communist Party (CCP)

On April 24, a reporter asked:
“Recently, there have been frequent reports from the U.S. claiming that China and the U.S. are negotiating and might even reach an agreement. Can you confirm whether negotiations have started?”

Chinese Foreign Ministry spokesperson Guo Jiakun responded:
“These are all false reports. As far as I know, China and the U.S. have not engaged in consultations or negotiations on the tariff issue, let alone reached any agreement.”

On April 25, a Reuters reporter asked:
“The U.S. says trade talks are ongoing between the U.S. and China. A White House official stated that low-level officials held meetings and calls this week. Is the U.S. trying to engage with China? If so, is China willing to hold trade talks?”

Guo Jiakun responded:
“Yesterday, both I and my colleagues at the Ministry of Commerce clearly addressed this issue. There have been no consultations or negotiations between China and the U.S. on the tariff matter. The U.S. should not mislead the public.”

Also on April 24, Chinese Ministry of Commerce spokesperson He Yadong stated at a press conference:
“Currently, there are no ongoing economic and trade negotiations between China and the U.S. Any reports about progress in such negotiations are pure speculation without factual basis.”

On April 25, the Chinese Embassy in the U.S. posted a Question and Answer (Q&A):
Question: “Recently, the U.S. has repeatedly expressed its willingness to reach a tariff agreement with China and claimed that dialogue has taken place. What is China’s response?”
Answer: “Such statements are purely misleading. As far as I know, China and the U.S. have not engaged in consultations or negotiations on the tariff issue, let alone reached an agreement.”

In short, thus far, the Chinese Foreign Ministry, the Ministry of Commerce, and the Chinese Embassy in the U.S. have all consistently stated: China has not held any negotiations with the U.S. on tariffs.

2. Statements from the U.S. Government

On April 22, 23, and 24, President Donald Trump repeatedly told reporters that the U.S. is actively negotiating with China to reach a “fair agreement.”

On April 25, in an interview with Time magazine, Trump revealed that he had received a direct call from Chinese President Xi Jinping. Trump said:

“He’s called. And I don’t think that’s a sign of weakness on his behalf.”

Trump emphasized that had Xi not made the first move, he himself would not have initiated contact.

3. Supporting Evidence from South Korea

On April 25, South Korea’s JoongAng Ilbo reported that around 7 a.m. Eastern Time on April 24, a senior official from China’s Ministry of Finance, accompanied by about 10 staff members, entered the U.S. Treasury headquarters near the White House.

Although the official’s identity was not disclosed, the report included a photo of the Chinese official with the face blurred for anonymity.

Source: Epoch Times, April 26, 2025
https://www.epochtimes.com/gb/25/4/26/n14492622.htm

China Held TikTok Campaign to Promote Chinese-Made Counterfeit Luxury Goods

A large number of videos from Chinese merchants have emerged on TikTok almost simultaneously. The content is largely similar, often presented in the name of factory personnel, primarily targeting luxury brands such as Hermès, Louis Vuitton, and Chanel. These short videos either feature English narration or are accompanied by English subtitles, promoting the idea that the factory prices of these high-end luxury goods in China are very low, and that the prices soar only after being labeled in Europe and the U.S.. The videos encourage consumers to purchase directly from Chinese factories.

These videos have driven the rapid rise in app store downloads in the U.S. for Chinese e-commerce platforms like DHgate and Taobao. However, DHgate, Taobao, and Pinduoduo have repeatedly been listed in the U.S. Trade Representative’s (USTR) annual Notorious Markets list for allegedly participating in or facilitating large-scale trademark counterfeiting or copyright infringement.

These promoted Chinese products are highly likely to be counterfeit. Lululemon clarified that the company does not collaborate with the manufacturer mentioned in the online videos. Hermès stated that 100 percent of its leather goods are made in France. Louis Vuitton also noted that its leather goods are all produced in Europe and the U.S.

French media outlets, after conducting fact-checks, indicated that this appears to be a coordinated propaganda effort, as the videos are highly similar in terms of upload dates, content, and format.

Hong Kong’s new media Economic Daily reported on April 18 that these TikTok efforts aim to bypass tariff barriers, revealing the survival crisis facing Chinese factories amid the sudden escalation of the U.S.-China trade war. There are also reports that many manufacturers of furniture, appliances, and clothing in China’s eastern coastal provinces exist primarily to serve U.S. consumers. With tariffs taking effect, these products may face the dilemma of having no market.

Source: Epoch Times, April 19, 2025
https://www.epochtimes.com/gb/25/4/19/n14486453.htm

LTN: Major Chinese Apple Supplier Luxshare Plans to Build Production Lines in U.S.

Major Taiwanese news network Liberty Times Network (LTN) recently reported that Luxshare, a Chinese electronic components manufacturer and a major Apple supplier, held an online press conference not long ago saying that the new U.S. tariffs will not have a major impact on the company. However, Laichun Wang, Luxshare’s chairman of the board, said in an internal teleconference that the company is moving more production lines outside China and has plans to do some manufacturing inside the United States.

In a hour-long internal discussion, Wang said the company only has a small number of finished products directly shipped to the United States, yet the company still needs to increase its overseas investment. More importantly, some domestic investment plans have to be paused for the time being. The company is in the middle of discussions with its U.S. customers about moving more production lines to the United States. Regarding whether the tariffs will be absorbed jointly by the suppliers, the product companies and the final consumers or not, Wang said, “So far, no hardware suppliers have assumed the charges for tariffs or logistics. This has never happened before.”

Luxshare is one of the primary Apple suppliers, headquartered in Baoan District, Shenzhen, Guangdong Province. It’s Foxconn’s largest iPhone OEM rival. The company also designs and manufactures electronic equipment such as routers, wireless charging modules and video conference equipment. Luxshare currently has production bases and research centers in Malaysia, Thailand, Vietnam, Mexico and the United States.

Neither Luxshare nor Apple responded to requests for comment from LTN.

Source: LTN, April 9, 2025
https://ec.ltn.com.tw/article/breakingnews/5007082