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US-China Relations - 17. page

Trump’s Tariff War: Chinese Expert Suggests Building “International United Front”

American President Donald Trump announced a reciprocal tariff policy on April 2nd, imposing a 34% tariff on Chinese goods effective as of the 9th. In response, China’s State Council unveiled countermeasures on the 4th, adding a 34% tariff on U.S. imports effective starting on the 10th.

According to an article by Luo Zhiheng, Chief Economist at Yuekai Securities based in Guangdong province, China should adopt three principles to counter Trump’s tariff war: “seeking unity through struggle,” “building an international united front,” and “strengthening China’s own capabilities.”

Luo suggests that “while China should strongly counter U.S. unilateral protectionist policies, it must also maintain dialogue mechanisms and seek cooperation opportunities.” He advocates for “uniting all possible allies, accelerating the formation of a non-dollar world alliance, and strengthening regional cooperation.”

The economist offered five specific recommendations:

1, Implement more precise and powerful countermeasures while preserving communication channels to reach interim agreements.

2, Build international communities of shared interests by strengthening cooperation with Europe, Japan, South Korea, ASEAN, Latin America, and Africa, reducing tariffs for these countries to create a non-dollar free trade system.

3, Actively expand domestic demand through additional fiscal budgets, interest rate cuts, and establishing a “Central Real Estate Stabilization Fund,” with the long-term goal of making China the world’s largest consumer market.

4, Provide relief to export-related industries and stabilize the job market.

5, Deepen reform momentum to increase potential economic growth.

Luo stated that Trump’s tariffs “aren’t based on economic rationality but rather on political electoral logic and personal power pursuits,” cautioning about the unpredictability of such an approach. He emphasized that “the long-term and severe nature of the tariff war is inevitable.”

Source: Central News Agency (Taiwan), April 8, 2025
https://www.cna.com.tw/news/acn/202504080237.aspx

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Xinhua: China Holds CCP Central Peripheral Work Conference, Emphasizes Regional Cooperation

Below are excerpts from an article by Xinhua News Agency, the official state news agency of the People’s Republic of China, covering the Chinese Communist Party’s (CCP’s) Central Peripheral Work Conference held in Beijing on April 8-9.

The CCP held its first Peripheral Diplomacy Work Symposium in 2013. Since then, China has been collaborating with 17 neighboring countries, forming two major clusters in the Indochina Peninsula (ASEAN) and Central Asia.

China’s relations with its neighbors are currently at their best in modern history. Now, China has entered a critical phase where regional dynamics and global changes are deeply interconnected. We should have a global perspective in handling peripheral affairs and a stronger sense of responsibility and mission.

Recently, the United States has indiscriminately imposed tariffs on all its trading partners, including China, severely violating their legitimate rights, breaching World Trade Organization rules, and undermining the stability of the multilateral trade system and global economic order. This has sparked strong opposition from the international community, including China’s neighboring countries.

China reaffirms its commitment to standing on the right side of history and human civilization’s progress. Alongside neighboring nations, it firmly opposes the notion that “might makes right” and is dedicated to upholding international fairness, justice, and the legitimate rights of all countries.

Source: Xinhua, April 10, 2025
http://www.xinhuanet.com/politics/leaders/20250410/12e4120f5de24c20b18fd28c7e583647/c.html

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CCTV: China Working With Many Countries to Counter Abusive U.S. Tariffs

The Chinese Commuist Party’s mouthpiece China Central Television (CCTV) published an article under its YuYuanTanTian (玉渊谭天) account on various social media platforms. The following is an excerpt from the article:

In recent days, Chinese Minister of Commerce Wang Wentao has been actively engaging in intensive communications with various counterparts:

  • April 8: Held a video meeting with Maroš Šefčovič, European Commission’s Executive Vice President for Trade and Economic Security
  • April 9: Video call with Tengku Zafrul, Minister of Investment, Trade, and Industry of Malaysia, current ASEAN chair
  • April 10: Video call with Ebrahim Patel, Minister of Trade, Industry and Competition of South Africa, current G20 chair
  • April 10: Video call with Majid Al-Qasabi, Minister of Commerce of Saudi Arabia
  • April 11: Video call with Geraldo Alckmin, Vice President of Brazil and Minister of Development, Industry, Trade and Services, current BRICS chair
  • April 11: Video call with Ngozi Okonjo-Iweala, Director-General of the World Trade Organization

According to sources close to the matter, a central topic in all of these conversations has been how to respond to the U.S.’s so-called “reciprocal” tariffs. China plans to continue strengthening communication and cooperation with more countries on this issue.

The author has noted that U.S. tariff policies have drawn widespread opposition. China is actively rallying support to uphold fairness and justice in global trade. China’s strategy is to unite with all possible allies, including, but not limited to EU, where China is the EU’s largest importer and the EU is China’s second-largest trading partner; and ASEAN, where China and ASEAN have been each other’s top trading partners for five consecutive years.

China’s stance is clear: Other countries are free to retaliate against or negotiate with the U.S. – that is their sovereign decision. But if anyone uses China’s interests as a bargaining chip to curry favor with the U.S., China will never tolerate it.

Source: CCTV, April 14, 2025
https://news.cctv.com/2025/04/14/ARTI88rHGnrBwbnVIDZMwDFC250414.shtml

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RTHK: Fitch Lowers China’s Sovereign Credit Rating

Radio Television Hong Kong (RTHK, a top government-owned broadcasting organization based in Hong Kong) recently reported on April 3 that international rating agency Fitch had lowered China’s sovereign credit rating from A+ to A.

Fitch’s China rating changed with a stable rating outlook to reflect expectations of continued weakness in China’s public finances and rapid increase in public debt. Experts anticipate that a global economic slowdown caused by the U.S. administration’s tariff hikes will negatively impact the Chinese economy.

China’s Ministry of Finance responded that the Fitch analysis was biased and “could not fully and objectively reflect China’s actual situation.” The Ministry also indicated that the rating “does not reflect the global and unanimous perception of China’s economic improvement.” Thus, the Ministry expressed “deep regret and disapproval” of the rating. The Chinese government reportedly “had a lot of in-depth communications with the Fitch Ratings team” and “has reserved sufficient policy space” to promptly study and dynamically adjust policies accordingly.

Fitch says the impacts of the latest U.S. reciprocal tariffs have not been factored into the new rating.

Sources:
(1) RTHK, April 3, 2025
https://gbcode.rthk.hk/TuniS/news.rthk.hk/rthk/ch/component/k2/1798856-20250403.htm
(2) Xinhua, April 3, 2025
http://www.news.cn/fortune/20250404/7d54562665984ef7b65b46b65d06c6bf/c.html

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Kyodo News: Beijing Planning to Strengthen Cooperation with Japan and South Korea

According to exclusive information obtained on March 29, Chinese leadership is developing plans to strengthen trilateral cooperation between China, Japan, and South Korea, with a focus on denuclearization of the Korean Peninsula. Beijing views the Trump administration’s “isolationist” tendencies as a “strategic opportunity” to improve relations with its East Asian neighbors. President Xi Jinping plans to visit South Korea in the second half of this year, according to multiple sources connected to China. This initiative appears aimed at weakening the US-Japan-South Korea alliance and reducing American influence in the Asia-Pacific region.

North Korea continues to advance its nuclear and missile programs while strengthening military cooperation with Russia. Sources familiar with China-North Korea relations revealed that Chinese Ambassador to North Korea Wang Yajun temporarily returned to China last October, reportedly as a gesture of protest. This suggests growing disagreement between Beijing and Pyongyang, with China seemingly concerned about its inability to halt North Korea’s nuclear development.

Following the Trump administration’s inauguration in January, cooperation between the US and its allies Japan and South Korea has begun to waver. This has led to a consensus among Chinese officials responsible for Japan-South Korea diplomacy and Korean Peninsula affairs that “an opportunity has emerged to move closer to Japan and South Korea.”

As part of its strategy to disrupt US-Japan-South Korea coordination, China is discussing cooperation on North Korean issues. Policy makers note that denuclearization of the Korean Peninsula represents the area of greatest mutual interest, as it has consistently been a shared goal of all three countries.

China has informed South Korea that President Xi will attend the APEC summit in South Korea scheduled for late October to early November, possibly as part of a formal state visit. Despite political instability in South Korea, China is demonstrating its commitment to the relationship and has expressed interest in holding a trilateral summit with Japan and South Korea soon.

Source: Kyodo News, March 29, 2025
https://china.kyodonews.net/news/2025/03/0952464809ac.html

Briefings | | |   US-China Relations

China to Review Sale of Panama Port to US Firm BlackRock by Hong Kong’s CK Hutchison

The Central News Agency of Taiwan recently reported that China’s State Administration for Market Regulation (SAMR) will review Hong Kong conglomerate CK Hutchison’s planned sale of its port operations to American company BlackRock. The review period could last up to six months. China’s Foreign Ministry stated today that it firmly opposes economic coercion that damages other countries’ legitimate interests.

According to The Paper (Pengpai News), at a regular press conference on March 31, Foreign Ministry spokesperson Guo Jiakun responded to questions about regulatory review of CK Hutchison’s port sale.

Guo stated, “We have noted the relevant reports,” emphasizing that “China has consistently and firmly opposed acts of economic coercion, hegemony, and bullying that infringe upon and damage other countries’ legitimate interests.”

SAMR’s Anti-Monopoly Bureau recently stated that they are aware of CK Hutchison’s planned agreement with US-based BlackRock regarding Panama port operations. The bureau will conduct a review according to law to protect fair market competition and safeguard public interest.

Chinese financial magazine Caijing reported on March 29 that under China’s anti-monopoly law, if cross-border transactions constitute business concentration and the operators’ turnover in China reaches reporting standards, the transaction must be reported to China’s anti-monopoly enforcement agency (SAMR) for approval before implementation.

According to Chinese regulations, the standard review period for business concentration is 180 days total, with possible extensions if further verification or evaluation is needed.

CK Hutchison, controlled by Hong Kong’s richest man Li Ka-shing’s family, had originally expected to sign the final agreement to sell interests in 43 global ports before April 2. The decision has drawn significant attention as it involves US pressure regarding Panama Canal port operations. Pro-Beijing newspaper Ta Kung Pao has published strongly-worded criticisms in recent days.

Sources close to CK Hutchison’s senior management indicated no agreement will be signed this week.

Source: Central News Agency (Taiwan), March 31, 2025
https://www.cna.com.tw/news/acn/202503310316.aspx

Briefings | | |   US-China Relations

CCP Mouthpiece Ta Kung Pao Warns of Legal Action Against Hutchison Whampoa’s Sale of Overseas Port Rights to U.S. Firm

Ta Kung Pao, the Chinese Communist Party’s (CCP’s) mouthpiece newspaper in Hong Kong, published an article on March 13, scolding Hong Kong businessman Li Ka-shing’s plan to sell the operating rights of 43 overseas ports, including two key ports in the Panama Canal, to the U.S. investment firm BlackRock {see https://chinascope.org/archives/36960}.

On March 21, Ta Kung Pao once again commented on the plan, threatening legal action:

“In recent years, the United States has labeled China as its ‘primary competitor’ and ‘most significant geopolitical challenge,’ employing measures such as technology blockades, trade wars, and supply chain decoupling to hinder China’s peaceful rise. Controlling global critical infrastructure is a key U.S. strategy, with ports being a primary target. The Panama Canal is a crucial maritime chokepoint, handling approximately 6 percent of global trade annually and serving as a key trade route between China and the Americas, making it highly significant to China’s national interests.

“This transaction is not merely an ‘ordinary commercial deal’ between enterprises but rather a perfect alignment with the U.S. strategy to contain China. If the ports in question are transferred to U.S. ownership, it could directly increase logistics costs for Chinese companies, weaken their international competitiveness, pose long-term threats to China’s manufacturing and foreign trade, and even impact the advancement of the Belt and Road Initiative.

“The Hong Kong law has this statement: ‘The highest principle of the ‘One Country, Two Systems’ policy (in Hong Kong) is to safeguard national sovereignty, security, and development interests.’ It is a legally binding provision. This transaction’s consequences – damaging China’s national security and development interests – directly violate this fundamental legal principle. Violating such a legal principle is, in itself, a violation of the law.

“Both the central government and the Hong Kong Special Administrative Region have legal mechanisms to address so-called ‘legal transactions’ that harm national interests.

“For entities and individuals who disregard the law and engage in activities detrimental to national security and development interests, their path will only become increasingly narrow.”

Meanwhile, despite scolding by Ta Kung Pao, it appears that Li Ka-shing has not entirely fallen out of grace with the CCP. Sound of Hope recently reported that Richard Li, Li Ka-shing’s younger son, was invited to attend the recent China Development Forum held in Beijing on March 23 and 24. As one of the representatives of the Chinese business community, Richard Li was photographed with Chinese Premier Li Qiang following a speech delivered by Li Qiang. The photo was released by national broadcaster China Central Television (CCTV), featuring Li Qiang in the center of the front row and Richard Li standing in the back row.

Source:
1. Ta Kung Pao, March 21, 2025
https://www.takungpao.com/opinion/233119/2025/0321/1070411.html
2. Sound of Hope, March 24, 2025
https://www.soundofhope.org/post/877436

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