[🇨🇳] China vs USA

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G   Chinese Defense Forum

Renewed US-China trade war is about tech supremacy too

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FILE VISUAL: REUTERS

The year was 1993. Chinese cargo ship Yinhe, sailing across the Indian Ocean, found its GPS equipment jammed, which depended on the US global satellite navigation system. Soon enough, US Navy ships appeared and wanted to search the vessel. Why? Because Washington suspected it was carrying chemical weapon materials for Iran. After a humiliating three-week standoff with food and water running out, the ship was searched, but no such cargo was found. Deeply humiliated, Beijing resolved that it must have its homegrown technology so such an incident would never be repeated. The outcome is BeiDou—better, bigger, and more advanced than any other satellite navigation system available today.

A similar spirit drives China's ambitions in the satellite broadband race, as ventures like Qianfan (also known as Thousand Sails or G60 Starlink), Guowang, and Geespace (developed by the automotive giant Geely) challenge the dominance of SpaceX's Starlink.

Launched in 2019, Starlink began with the ambitious goal of providing high-speed, low-latency internet coverage to even the most remote corners of the globe. It has steadily grown into a formidable network, with nearly 7,000 satellites already in orbit, and plans to deploy thousands more. It has proven to be of strategic value by providing crucial internet services in the Ukraine war. When terrestrial internet infrastructure was disrupted, Starlink terminals enabled Ukrainian forces to maintain communication, coordinate operations, and gather intelligence. This has highlighted the potential of satellite broadband networks to provide resilient communication channels in conflict zones, a capability that China undoubtedly recognises and seeks to achieve.

China's determination to become a major player in this field is evident. Qianfan, for instance, aims to create a constellation of 13,000 satellites, while Guowang has similar aspirations with its "national-level satellite internet constellation" plan. Geespace focuses on providing services to both the Chinese domestic market and international clients, with a constellation designed to support autonomous driving and other data-intensive applications. These ventures could provide high-speed internet access to underserved and remote areas of China and the world, bridging the digital divide and fostering economic growth. They could also be crucial to China's military and strategic ambitions, providing secure and reliable communications for its armed forces and intelligence agencies. This competition also encompasses the development of satellite jamming technology. Both players are investing in capabilities to disrupt each other's satellite networks while protecting their own.

Despite their ambitions and resources, Chinese ventures face significant technological hurdles. Developing and deploying a massive satellite constellation requires advanced technology in areas like satellite manufacturing, launch capabilities, and network management. The United States Space Command (USSC) reported that Qianfan scattered hundreds of space debris while launching 18 satellites in August last year.

The escalating trade war between Washington and Beijing has made this technological competition more complex. The US's restriction on tech exports to China, specifically designed to hinder the latter's progress in the space race, has continued since Trump's first presidency, followed by Biden's and then Trump's. The crucial role of artificial intelligence adds another layer of complexity to this race, and companies like DeepSeek, at the forefront of AI innovation in China, are poised to become key players. It also raises question about the effectiveness of US's tech sanctions on China: are they spurring China's innovations? Their sophisticated AI algorithms can analyse vast amounts of satellite imagery, enabling enhanced navigation, environmental monitoring, and even national security applications.

Innovative Chinese researchers and companies possess several advantages in the satellite broadband race, including robust government support and substantial financial and policy backing for their ventures. Additionally, China benefits from lower labour and manufacturing costs than the US, providing a significant economic edge. The country also boasts the world's largest internet market, offering a vast potential customer base. Furthermore, China's satellite broadband ambitions align with its military and strategic goals, enabling secure communication for its armed forces and intelligence agencies.

However, China must also overcome several crucial technological barriers, such as designing and manufacturing fast and efficient two-nanometre semiconductors, which Taiwan's TSMC already produces with Washington's active support (in comparison, China's SMIC is making five-nanometre chips for Huawei.) Washington's export controls on sensitive technology could hinder Beijing's progress. Still, such situations often stimulate innovations, as the development of DeepSeek without NVIDIA's most advanced chips has shown (it has recently been questioned, though.)

The implications of this competition are far-reaching. It's not just a commercial contest between companies; it's a strategic rivalry between two superpowers vying for technological supremacy. The outcome will shape the future of communication, global commerce and access to information, and redefine the balance of power in the 21st century.

Dr Sayeed Ahmed is a consulting engineer and the CEO of Bayside Analytix, a technology-focused strategy and management consulting organisation.​
 

China condemns Trump's 'tariff shocks' at WTO, US hits back
REUTERS
Published :
Feb 19, 2025 21:30
Updated :
Feb 19, 2025 21:30

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A logo is seen at the World Trade Organization (WTO) headquarters before a news conference in Geneva, Switzerland, October 5, 2022. Photo : REUTERS/Denis Balibouse/Files

China condemned tariffs launched or threatened by US President Donald Trump at a World Trade Organization meeting on Tuesday, saying such "tariff shocks" could upend the global trading system in a warning dismissed as hypocritical by Washington.

Trump has announced sweeping 10 per cent tariffs on all Chinese imports, prompting Beijing to respond with retaliatory tariffs and to file a WTO dispute against Washington in what could be an early test of Trump's stance towards the institution.

"These 'Tariff Shocks' heighten economic uncertainty, disrupt global trade, and risk domestic inflation, market distortion, or even global recession," China's ambassador to the WTO Li Chenggang said at a closed-door meeting of the global trade body, according to a statement sent to Reuters.

"Worse, the US unilateralism threatens to upend the rules-based multilateral trading system."

US envoy David Bisbee took the floor in response, calling China's economy a "predatory non-market economic system".

"It is now more than two decades since China joined the WTO, and it is clear that China has not lived up to the bargain that it struck with WTO Members when it acceded," he said. "During this period, China has produced a long record of violating, disregarding, and evading WTO rules," he added.

Only a handful of other states joined the debate, according to two trade sources who attended the meeting. Some of them expressed deep concern that tariffs pose a risk to the stability of the global trading system while others criticised China for alleged market distortions, the sources said.

WTO Director-General Ngozi Okonjo-Iweala also addressed the room and reiterated a call for calm. "The WTO was created precisely to manage times like these - to provide a space for dialogue, prevent conflicts from spiralling, and support an open, predictable trading environment," she said.

The WTO discussion, which began late on Tuesday and continues Wednesday, is the first time that mounting trade frictions were formally addressed on the agenda of the watchdog's top decision-making body, the General Council.

NEGOTIATING TACTIC

Less than being a swipe at Washington, some delegates said they considered China's intervention more as an effort to show itself as supporting WTO rules - a posture that can help China win allies in ongoing global trade negotiations.

Disputes between the two top economies at the WTO long pre-date Trump's arrival. Beijing has accused Washington of breaking rules while Washington says Beijing does not deserve its "developing country" status which entitles it to special treatment under WTO rules.

As the Trump administration has announced plans to withdraw or disengage from other global organisations, the WTO has not yet been a major focus for the White House.

However, incoming US Trade Representative Jamieson Greer has called the WTO "deeply flawed".​
 

Trump says trade deal with China ‘possible’
Agence France-Presse . Washington 20 February, 2025, 23:48

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Donald Trump. | AFP file photo

US president Donald Trump suggested on Wednesday that a trade deal was ‘possible’ with China — a key target in the US leader’s tariffs policy.

In 2020, the United States had already agreed to ‘a great trade deal with China’ and a new deal was ‘possible,’ Trump told reporters aboard Air Force One.

Asked about the comments, Beijing’s foreign ministry said Thursday the two countries should handle trade tensions with ‘mutual respect.’

One month into his second term in office, Trump has threatened sweeping tariffs on allies and adversaries alike — targeting China as well as neighbours Canada and Mexico, and the European Union — and using levies as his main policy tool for lowering the massive US trade deficit.

At the beginning of February, he slapped additional customs duties of 10 per cent on all products imported from China.

Beijing’s foreign ministry said Thursday that China and the United States ‘should resolve their concerns through dialogue and consultation based on equality and mutual respect.’

‘Trade and tariff wars have no winners and only serve to damage the interests of people all over the world,’ ministry spokesman Guo Jiakun said at a regular press briefing.

At a separate news conference, China’s commerce ministry said Beijing ‘urges the US side not to wield the big stick of tariffs at every turn, using tariffs as a tool to engage in coercion all around.’

Trump is also threatening to impose 25 per cent tariffs on all imported cars, and similar or higher duties on pharmaceuticals and semiconductors as he turns up the heat on some of the biggest US trading partners.

He also told journalists aboard Air Force One on Wednesday that his administration was considering lumber tariffs of ‘maybe 25 per cent’ in the coming months.

The president initially announced tariffs of 25 per cent on all Canadian and Mexican imports, before U-turning hours before they were due to come into effect, granting a one-month reprieve in principle until March 1.

And he signed executive orders last week imposing new 25 per cent tariffs on steel and aluminum imports, due to come into effect on March 12.

Experts have warned it is often Americans who pay the costs of tariffs on US imports — not the foreign exporter.

Between Washington and Beijing, ‘there’s a little bit of competitiveness, but the relationship I have with president Xi (Jinping) is, I would say, a great one,’ Trump told reporters on Wednesday.

In addition to the leaders of France and Britain, Trump said Xi would also eventually be coming to Washington to meet with him.

Beijing has responded to the US tariffs with customs duties of 15 per cent on coal and liquefied natural gas and 10 per cent on oil and other goods, such as agricultural machinery and vehicles.

China is the country with the largest trade surplus with the United States in goods — $295.4 billion in 2024, according to the Bureau of Economic Analysis, which reports to the US Department of Commerce.

US ally Japan last week said it had asked the United States to be exempt from Trump’s tariffs on steel and aluminium exports, and has underlined the importance of its auto industry.

Tokyo’s trade minister is arranging a visit to the United States in the coming weeks to further push for exemptions, Japanese media reported Thursday.

Yoji Muto was expected to meet US officials including new commerce secretary Howard Lutnick before March 12, when the 25 per cent tariffs on steel and aluminium imports were set to come into effect, Kyodo News said.

Trump’s latest remarks on tariffs came as the European Union’s trade chief vowed Wednesday that the bloc would respond ‘firmly and swiftly’ to protect its interests if Washington imposes tariffs on EU goods.

Maros Sefcovic rejected Trump’s claim that US-EU trade ties were unfair, calling them the ‘very definition of a win-win partnership.’

But he signalled the EU’s willingness for dealmaking, such as the possibility of reducing or eliminating tariffs on autos and other products.

‘If we are going to talk about lowering the tariffs, even eliminating the tariffs, let’s say for industrial products, this would be something which we are ready to discuss,’ he said.

Within the 27-nation EU, Germany has by far the largest trade surplus with the United States, largely thanks to its automobile industry and chemical giants such as Bayer and BASF, according to the European statistics agency, Eurostat.​
 

China vows response to latest US tariffs
Agence France-Presse . Beijing 28 February, 2025, 23:30

China on Friday vowed to take ‘all necessary countermeasures’ after US president Donald Trump said he would impose an additional 10 per cent tariff on Chinese imports — a decision Beijing warned would ‘seriously impact dialogue’.

Trump’s latest move will come into effect on Tuesday alongside sweeping 25 per cent levies on Canadian and Mexican imports, intensifying a brewing trade war between the world’s two largest economies.

The 10 per cent tariff on Chinese imports will come on top of an existing levy of the same rate imposed by Trump on China earlier this month.

Trump had announced — then halted — sweeping 25 per cent levies on Canadian and Mexican imports this month over illegal immigration and deadly fentanyl, with Canadian energy to face a lower rate.

But the month-long pause ends Tuesday.

Following reporters’ questions on whether he planned to proceed on the tariffs next week, Trump wrote on social media Thursday that until the problem of fentanyl stops ‘or is seriously limited’, the proposed levies will happen as scheduled.

‘China will likewise be charged an additional 10 per cent Tariff on that date,’ he added, referring to March 4.

In response to Trump’s allegations that Beijing is contributing to the fentanyl crisis in the United States, a spokesperson for China’s commerce ministry said Friday that Washington was ‘shifting the blame’.

‘China is one of the countries with the strictest and most thorough anti-narcotics policy in the world,’ the statement read.

‘But the US side has always ignored these facts,’ it said.

‘If the US side insists on going its own way, the Chinese side will take all necessary countermeasures to defend its legitimate rights and interests,’ it said.

The statement also said that the tariff hike ‘is not conducive to solving (the United States’) own problems’, adding that it would ‘increase the burden on American companies and consumers, and undermine the stability of the global industrial chain’.

Shortly after the statement was published, China’s foreign ministry warned that the new tariffs would ‘seriously impact dialogue’ between the two countries on narcotics control, accusing Washington of ‘blackmail’.

‘Pressure, coercion and threats are not the correct way to deal with China. Mutual respect is the basic premise,’ foreign ministry spokesman Lin Jian said at a daily press conference.

China’s leadership will convene next week to hammer out plans to shield its economy from Trump’s threats.

Mexican president Claudia Sheinbaum on Thursday said she hoped to speak with Trump to avoid being hit by his threatened tariffs.

A high-level Mexican delegation is in Washington in search of an agreement.

And Canadian prime minister Justin Trudeau said officials are working around the clock to avert US levies but would have an ‘immediate’ response if measures were imposed next week.

Trudeau has repeatedly stressed that less than one per cent of the fentanyl and undocumented migrants that enter the United States come through the Canadian border.

Trump’s threats have sent shivers through major exporter countries.

Asian markets were all well in the red early Friday, with Tokyo briefly shedding three per cent.

Besides levies over fentanyl, Trump added on his Truth Social platform that an April 2 date for so-called reciprocal tariffs ‘will remain in full force and effect’.

These will be tailored to each US trading partner, with details to come after government agencies complete studies on trade issues which Trump has called for.

In a letter this week by Chinese commerce minister Wang Wentao to newly confirmed US trade representative Jamieson Greer, Wang noted that Trump has called for many trade investigations ‘aimed at China’ and urged both sides to resolve their differences via dialogue.

Beijing has pushed back against US fentanyl concerns, saying Washington has to solve the issue itself rather than taking aim at other countries with levies.

Rather than the drugs being supplied directly to the United States, a Congressional Research Service report noted last year that US-bound fentanyl appears to be made in Mexico using chemical precursors from China.

While some precursors face international controls, others may be made and exported legally from countries like China.

In early February, China’s foreign ministry warned that fresh tariffs could hurt counter-narcotics cooperation.​
 

China’s foreign minister criticizes US tariffs and accuses the country of ‘meeting good with evil’
REUTERS
Published :
Mar 07, 2025 19:54
Updated :
Mar 07, 2025 19:54

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Chinese Foreign Minister Wang Yi said China will continue to retaliate to the United States' "arbitrary tariffs" and accused Washington of "meeting good with evil" in a press conference Friday on the sidelines of the country's annual parliamentary session.

Wang said China's efforts to help the U.S. contain its fentanyl crisis have been met with punitive tariffs, which are straining the ties between the countries.

"No country should fantasize that it can suppress China and maintain a good relationship with China at the same time," Wang said. "Such two-faced acts are not good for the stability of bilateral relations or for building mutual trust."

The two countries have been reengaging in tit-for-tat retaliatory tariffs since U.S. President Donald Trump's return to office in January. The U.S. has imposed flat tariffs of 20% of all Chinese imports, while Beijing has countered with additional 15% duties on U.S. imports including chicken, pork, soy and beef, and expanded controls on doing business with key U.S. companies.

Regarding the Trump administration's policy of safeguarding U.S. interests above international cooperation, Wang said such an approach, if adopted by every country in the world, would result in the "law of the jungle."

"Small and weak countries will get burnt first, and the international order and rules will be under severe shock," Wang said. "Major countries should undertake their international obligations ... and not seek to profit from and bully the weak."​
 

China poses biggest military, cyber threat to US, intel chiefs say
REUTERS
Published :
Mar 26, 2025 18:45
Updated :
Mar 26, 2025 18:45

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US and Chinese flags are seen in this illustration taken March 20, 2025. Photo : REUTERS/Dado Ruvic/Illustration/Files

China remains the top military and cyber threat to the US, according to a report by US intelligence agencies published on Tuesday that said Beijing was making "steady but uneven" progress on capabilities it could use to capture Taiwan.

China has the ability to hit the United States with conventional weapons; compromise US infrastructure through cyber attacks; and target its assets in space, the Annual Threat Assessment by the intelligence community said, adding that Beijing also seeks to displace the United States as the top AI power by 2030.

Russia, along with Iran, North Korea and China, seeks to challenge the US through deliberate campaigns to gain an advantage, with Moscow's war in Ukraineaffording a "wealth of lessons regarding combat against Western weapons and intelligence in a large-scale war," the report said.

Released ahead of testimony before the Senate Intelligence Committee by President Donald Trump's intelligence chiefs, the report said China's People's Liberation Army (PLA) most likely planned to use large language models to create fake news, imitate personas, and enable attack networks.

"China's military is fielding advanced capabilities, including hypersonic weapons, stealth aircraft, advanced submarines, stronger space and cyber warfare assets and a larger arsenal of nuclear weapons," Director of National Intelligence Tulsi Gabbard told the committee. She labeled Beijing as Washington's "most capable strategic competitor."

"China almost certainly has a multifaceted, national-level strategy designed to displace the United States as the world's most influential AI power by 2030," the report said.

CIA Director John Ratcliffe told the committee that China had made only "intermittent" efforts to curtail the flow of precursor chemicals fueling the US fentanyl crisis because it was reluctant to crack down on lucrative Chinese businesses.

Trump has increased tariffs on all Chinese imports by 20 per cent to punish Beijing for what Trump called its failure to halt shipments of fentanyl chemicals. China has denied playing a role in the crisis, the leading cause of US drug overdose deaths. The issue has become a major point of friction between the Trump administration and Chinese officials.

"There is nothing to prevent China ... from cracking down on fentanyl precursors," Ratcliffe said.

The Chinese foreign ministry said it "advised the US not to use its own hegemonic logic to mirror China, and not to use outdated Cold War thinking to view China-US relations," when asked about the report on Wednesday.

The ministry urged Washington to stop "condoning and supporting Taiwan independence separatist activities," ministry spokesperson Guo Jiakun said.

The spokesperson for China's embassy in Washington, Liu Pengyu, said the United States has long "hyped up" the China threat as an excuse to maintain US military hegemony.

"China is determined to be a force for peace, stability and progress in the world, and also determined to defend our national sovereignty, security and territorial integrity," Liu said, adding that "fentanyl abuse is a problem that the United States itself must confront and resolve."

INTELLIGENCE LEAK FUROR OVERSHADOWS HEARING

The committee hearing was overshadowed by Democratic senators grilling Ratcliffe and Gabbard over revelations that they and other top Trump officials discussed highly sensitive military plans in a Signal messaging app group that accidentally included a US journalist.

Numerous Republican senators focused their questioning on undocumented immigrants in the US

The intelligence report said large-scale illegal immigration had strained US infrastructure and "enabled known or suspected terrorists to cross into the United States."

The intelligence agencies said Iran was committed to developing surrogate networks inside the US and to targeting former and current US officials.

While Iran continued to improve its domestically produced missile and UAV systems and arm a consortium of "like-minded terrorist and militant actors", they said, the US continues to assess that Tehran "is not building a nuclear weapon."

US concerns about China dominated about a third of the 33-page report, which said Beijing was set to increase military and economic coercion toward Taiwan, the democratically governed island China claims as its territory.

"The PLA probably is making steady but uneven progress on capabilities it would use in an attempt to seize Taiwan and deter - and if necessary, defeat - US military intervention," it said.

The intelligence agencies said another one of China's long-term goals was to expand access to Greenland's natural resources and use it as a "key strategic foothold" in the Arctic.

US Vice President JD Vance said he would visit Greenland this week with a high-profile US delegation. Trump has angered NATO ally Denmark and Greenland with renewed calls for the US to take over the semi-autonomous Danish territory, calling the proposal a US national security imperative.

Still, the report said, China faces "daunting" domestic challenges, including corruption, demographic imbalances, and fiscal and economic headwinds that could impair the ruling Communist Party's legitimacy at home.

China's economic growth probably will continue to slow because of low consumer and investor confidence, and Chinese officials appear to be bracing for more economic friction with the US, the report said.​
 

China rebuffs Trump offer of tariff concessions if Beijing agrees TikTok deal

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China rebuffed on Thursday a suggestion from US President Donald Trump that he might offer to reduce tariffs on the country to get Beijing's approval for the sale of popular social media platform TikTok.

Trump said this month the United States was in talks with four groups interested in acquiring TikTok, with the app facing an uncertain future in the country.

A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States, enacted over concerns that Beijing could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion.

The law took effect on January 19, a day before Trump's inauguration, but he quickly announced a delay that has allowed it to continue to operate.

That delay is set to expire on April 5.

Trump told reporters at the White House on Wednesday that he could give China "a little reduction in tariffs or something to get it done".

"We're going to have a form of a deal," Trump said, adding that if it wasn't done in time, he would extend the deadline.

"China is going to have to play a role in that, possibly in the form of an approval and I think they'll do that."

Beijing swiftly rebuffed Trump's suggestion, with its foreign ministry saying that it has "repeatedly stated our position" on TikTok.

"The Chinese side's stance against imposing additional tariffs is also consistent and clear," foreign ministry spokesman Guo Jiakun said.

Trump similarly attempted to ban TikTok in the United States on national security concerns during his first stint in the White House.

TikTok temporarily shut down in the United States in January and disappeared from app stores as the deadline for the law approached, to the dismay of millions of users.

Trump suspended its implementation for two-and-a-half months after beginning his second term on January 20, seeking a solution with Beijing.

TikTok subsequently restored service in the United States and returned to the Apple and Google app stores in February.

Artificial intelligence (AI) startup Perplexity recently expressed its interest in buying TikTok.

Perplexity laid out in a blog post a vision for integrating its AI-powered internet search capabilities with the popular video-snippet sharing app.

"Combining Perplexity's answer engine with TikTok's extensive video library would allow us to build the best search experience in the world," the San Francisco-based firm said.

Although TikTok does not appear overly motivated regarding the sale of the app, potential buyers include an initiative called "The People's Bid for TikTok", launched by real estate and sports tycoon Frank McCourt's Project Liberty initiative.

Others in the running are Microsoft, Oracle and a group that includes Internet personality MrBeast, whose real name is Jimmy Donaldson.

"Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space," Perplexity said in its post.

"All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists."​
 

China slaps a 34pc tax on all US imports in retaliation for Trump's tariffs
AP
Published :
Apr 05, 2025 09:55
Updated :
Apr 05, 2025 09:55

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China announced Friday that it will impose a 34% tax on all US imports next week, part of a flurry of retaliatory measures to US President Donald Trump’s new tariffs that delivered the strongest response yet from Beijing to the American leader's trade war.

The tariffs taking effect Thursday match the rate that Trump this week ordered imposed on Chinese products flowing into the United States. In February and March, Trump slapped two rounds of 10% tariffs on Chinese goods, citing allegations of Beijing's role in the fentanyl crisis.

The US stock market plunged Friday following China’s retaliatory moves. They include more export controls on rare earth minerals, which are critical for various technologies, and a lawsuit at the World Trade Organization over what Trump has dubbed reciprocal tariffs.

China also suspended imports of sorghum, poultry and bonemeal from six US companies, added 27 firms to lists of companies facing trade restrictions, and launched an anti-monopoly investigation into DuPont China Group Co., a subsidiary of the multinational chemical giant.

Trump posted Friday on Truth Social: “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO.”

Yet he also indicated he could still negotiate with China on the sale of TikTok even after Beijing pressed pause on a deal following the new tariffs. On Friday, he extended the deadline for the social media app to divest from its Chinese parent company, per a federal law, for another 75 days.

“We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs,” Trump posted on his social media site. “We look forward to working with TikTok and China to close the Deal.”

China's response to tariffs grows tougher

Beijing’s response is “notably less restrained” than during the recent two rounds of 10% tariffs on Chinese goods, and that “likely reflects the Chinese leadership’s diminished hopes for a trade deal with the US, at least in the short term,” wrote Gabriel Wildau, managing director of the consultancy Teneo.

He said Beijing's tough response could trigger further escalation, with no sign that Chinese President Xi Jinping and Trump might meet soon or get on the phone to ease the tensions.

If China’s previous responses were scalpels, this time it drew a sword, said Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, a Washington-based think tank.

“China’s new tariffs stop short of full-blown trade war, but they mark a clear escalation — matching Trump blow-for-blow and signaling that Xi Jinping won’t sit back under pressure,” Singleton said.

But the escalation also is squeezing out space for diplomacy, he warned.

“The longer this drags, the harder it becomes for either side to deescalate without losing face,” Singleton said.

What China's retaliatory measures look like

In Beijing, the Commerce Ministry said it would impose more export controls on rare earths — materials used in high-tech products such as computer chips and electric vehicle batteries. Included in the list was samarium and its compounds, which are used in aerospace manufacturing and the defense sector. Another element called gadolinium is used in MRI scans.

China's customs administration said it had suspended imports from two US poultry businesses after officials detected furazolidone, a drug banned in China, in shipments from those companies. It said it found high levels of mold in the sorghum and found salmonella in the bonemeal feeds from four other US companies.

The Chinese government said it also added 16 US companies to the export control list, subjecting them to an export ban of dual-use products. Among them are High Point Aerotechnologies, a defense tech company, and Universal Logistics Holding, a publicly traded transportation and logistics company.

An additional 11 US companies were added to the unreliable entity list, including the American drone makers Skydio and BRINC Drones, banning them from import and export activities as well as making new investments in China.

In announcing its WTO lawsuit, the Commerce Ministry said Trump's new tariffs move “seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and international economic and trade order.”

The ministry called the tariffs “a typical unilateral bullying practice that endangers the stability of the global economic and trade order.”

Beijing's previous tariff moves

In February, in response to Trump's first 10% tariff, China announced a 15% tariff on imports of coal and liquefied natural gas products from the US It separately added a 10% tariff on crude oil, agricultural machinery and large-engine cars.

A month later, Beijing responded to Trump's second round with additional tariffs of up to 15% on imports of key US farm products, including chicken, pork, soy and beef. Experts then said Beijing exercised restraint, leaving room for negotiations with Washington.

By now, dozens of US companies are subject to controls on trade and investment, while many more Chinese companies face similar limits on dealings with US firms.

While friction on the trade front has been heating up, the two sides have maintained military dialogue.

US and Chinese military officials met this week for the first time Trump took office in January to share concerns about military safety on the seas. The talks held Wednesday and Thursday in Shanghai were aimed at minimizing the risk of trouble, both sides said.​
 

Trump threatens further 50% tariffs on China
AFP Washington, USA
Published: 07 Apr 2025, 22: 24

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US president Donald Trump Reuters file photo

US President Donald Trump on Monday threatened huge additional tariffs on imports from China if Beijing did not withdraw its retaliation plans, adding that Washington would begin negotiations with other countries that want them.

"If China does not withdraw its 34 per cent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 percent, effective April 9th," Trump said in a Truth Social post.

Beijing has issued countermeasures after Trump announced another sharp tariff hike on goods from the world's second biggest economy last week.

Since returning to the presidency, Trump has imposed 20 per cent added duties on Chinese imports over its alleged role in the fentanyl supply chain.

A fresh 34 percent levy on the country's products is due to kick in Wednesday, bringing the added rate this year to 54 per cent.

It is not immediately clear how Trump's new threat factors into this calculation.

China's response included export controls on rare earth elements, and Beijing plans for its own 34 percent tariff on US goods, stacking atop existing Chinese levies set to begin 10 April.

Trump took aim at Beijing's economic practices on social media Monday, criticising its "non-monetary tariffs" and "illegal subsidization of companies."

He added that "all talks with China concerning their requested meetings with us will be terminated."

But "negotiations with other countries, which have also requested meetings, will begin taking place immediately," Trump wrote on his Truth Social platform.​
 

Tariffs on China set to rise to at least 104pc on Wednesday, says White House
FE ONLINE DESK
Published :
Apr 08, 2025 23:56
Updated :
Apr 08, 2025 23:58

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US President Donald Trump is set to impose an additional 84 per cent in levies across all Chinese imports on Wednesday, White House Press Secretary Karoline Leavitt announced on Tuesday.

It will mean all goods from the country are subject to a tariff of at least 104 per cent, according to a CNN report.

China was already set to see tariffs increase by 34 per cent on Wednesday as part of Trump’s “reciprocal” tariffs package. But the president tacked on another 50 per cent after Beijing didn’t back off its promise to impose 34 per cent retaliatory tariffs on US goods by noon Tuesday.

“Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” Leavitt told reporters on Tuesday. “President Trump has a spine of steel, and he will not break.”

“The Chinese want to make a deal, they just don’t know how to do it,” she added. She declined to share what, if any, terms Trump would consider to lower tariffs on China.

China was America’s second largest source of imports last year, shipping a total of $439 billion worth of goods to the US while the US exported $144 billion worth of goods to China. The mutual tariffs threaten to hurt domestic industries and are poised to result in layoffs.​
 

China to increase tariffs on US goods to 125pc
REUTERS
Published :
Apr 11, 2025 16:38
Updated :
Apr 11, 2025 16:47

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Beijing on Friday increased its tariffs on US imports to 125 per cent, hitting back against US President Donald Trump's decision to hike duties on Chinese goods to 145 per cent and raising the stakes in a trade war that threatens to up-end global supply chains.

China's retaliation intensified the economic turmoil unleashed by Trump's tariffs, with markets tumbling further and foreign leaders puzzling how to respond to the biggest disruption to the world trade order in decades.

The brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to the escalating trade conflict between the US and China that has fuelled global recession fears.

Global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace on Friday, reigniting fears of fragility in the world's biggest bond market. Gold, a safe haven for investors in times of crisis, scaled a record high.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at Janus Henderson.

Asian indices mostly followed Wall Street lower on Friday.

In Europe, China's latest tariff hike sent stocks lower, leaving the STOXX 600 (.STOXX), opens new tab down more than 1 per cent on the day and set for another drop this week. Financial markets are experiencing some of the most volatile trading since the early days of the COVID-19 pandemic.

"There's clearly an exodus from US assets. A falling currency and bond market is never a good sign," said Kyle Rodda, senior financial markets analyst at Capital.com. "This goes beyond pricing in a growth slowdown and trade uncertainty."

US Treasury Secretary Scott Bessent shrugged off the renewed market turmoil on Thursday and said striking deals with other countries would bring certainty.

The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported.

Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week.

TRADE WAR WITH CHINA

As Trump suddenly paused his 'reciprocal' tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

He has now imposed new tariffs on Chinese goods of 145 per cent since taking office.

China hit back with new tariffs on Friday, although Beijing indicated that this would be the last time it matched the US, should Trump take his duties any higher.

"Even if the US continues to impose even higher tariffs, it would no longer have any economic significance and would go down as a joke in the history of world economics," the finance ministry statement added.

"If the US continues to play a numbers game with tariffs, China will not respond," it added, however, leaving the door open for Beijing to turn to other types of retaliation, and reiterating that China would fight the US to the end.

Trump had told reporters at the White House on Thursday that he thought the United States could make a deal with China and said he respected Chinese President Xi Jinping.

"In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries," he said.

Xi, in his first public remarks on Trump's tariffs, told Spanish Prime Minister Pedro Sanchez during a meeting in Beijing on Friday that China and the European Union should "jointly oppose unilateral acts of bullying," in a clear swipe at Trump's tariff policies.

"There are no winners in a trade war," the Chinese leader told his guest, adding that by acting together, the world's second-largest economy and the 27-strong European trade bloc could defend their interests and help uphold "the global rules-based order," China's state news agency Xinhua reported.​
 

US-China trade: peace, not war, to benefit the world
Hedayet Ahmed
Published :
Apr 20, 2025 22:15
Updated :
Apr 20, 2025 22:15

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The reciprocal tariff, imposed by President Donald Tramp, has fuelled tension in the international trade leaving the financial markets volatile across the globe. Though he took a break for three months apparently sensing the gravity of his crazy decision, tariffs on China was increased more, a move termed as bullying by many.

But questions have been raised whether such bullying will do any good to the United States (US) or a stable and peaceful bilateral trade between the two most powerful economies can offer win-win situation for both.


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A deeper analysis of the of the bilateral trade between these two countries shows that gains from economic and trade relations between China and the US are generally balanced and China's trade deficit with the US in travel services has expanded continuously.

It is also found that China's payments of intellectual property royalties to the US have increased steadily, and at the end of the day China and the US both can gain from bilateral cooperation in trade and economy.

BILATERAL TRADE IN GOODS: China-US two-way trade in goods has grown rapidly. Statistics from the United Nations (UN) show that in 2024, the volume of trade in goods between China and the US reached $688.28 billion, which was 275 times the volume of the trade in 1979, when diplomatic relations were established between the two countries, and more than eight times the volume of the trade in 2001, when China joined the World Trade Organisation (WTO). Currently, the US is China's largest goods export destination and the second-largest source of imports. In 2024, China's exports to the US and imports from the US accounted for 14.7 per cent and 6.3 per cent of China's total exports and imports for the year. China is the US's third-largest export destination and second-largest source of imports. In 2024, US exports to China and imports from China accounted for 7.0 per cent and 13.8 per cent of the US total exports and imports for the year respectively.

US exports to China have grown much faster than its exports to the rest of the world. Since China's entry into the WTO, US exports to China have grown rapidly, making China an important export market for the US. According to UN statistics, in 2024, US goods exports to China reached US$143.55 billion, representing a 648.4 per cent increase from US$19.18 billion in 2001, which far exceeded its overall export growth of 183.1 per cent during the same period.

China is an important export market for US agricultural products, integrated circuits, coal, liquefied petroleum gas, pharmaceuticals, and automobiles. China is the largest export market for US soybeans and cotton, the second-largest export market for integrated circuits and coal, and the third-largest export market for medical devices, liquefied petroleum gas, and automobiles. UN data shows that in 2024, China was the destination for 51.7 per cent of US soybean exports, 29.7 per cent of its cotton exports, 17.2 per cent of its integrated circuit exports, 10.7 per cent of its coal exports, 10.0 per cent of its liquefied petroleum gas exports, 9.4 per cent of its medical equipment exports, and 8.3 per cent of its passenger motor vehicle exports.

China-US bilateral trade is highly complementary as the two countries play to their comparative strengths.

Chinese customs data show that in 2024, China's top five export categories to the US were electrical machinery and equipment and parts thereof, mechanical appliances and parts thereof, furniture, toys, and plastics, accounting for 57.2 per cent of its total exports to the US. China's top five import categories from the US were mineral fuels, mechanical appliances and parts, electrical machinery and equipment and parts, optical instruments and apparatus, and oil seeds including soybeans, accounting for 52.8 per cent of its total imports from the US. Machinery and electrical products are particularly important in China-US bilateral trade, exhibiting an evident characteristic of intra-industry trade.

TRADE IN SERVICES: The US service industry is well developed with a complete range of sectors and strong international competitiveness. Overall, as the economy continues to develop and the standard of living rises, the demand for services in China is expanding significantly, leading to rapid growth in service trade between China and the US. According to the US Department of Commerce (USDOC), between 2001 and 2023, two-way trade in services between China and the US expanded from US$8.95 billion to US$66.86 billion, representing a seven-fold increase. China's statistics show the US as its second-largest trade partner in services in 2023, while US statistics show China as its fifth-largest services export market.

The US stands as the largest source of China's deficit in service trade, with the deficit generally exhibiting an upward trend. According to the USDOC, from 2001 to 2023, US service exports to China expanded from US$5.63 billion to US$46.71 billion, an 8.3-fold increase. The US annual service trade surplus with China expanded 11.5 times to US$26.57 billion. In 2019, the number soared to US$39.7 billion. In 2023, China continued to be the biggest contributor to the US service trade surplus, representing roughly 9.5 per cent of the total. China's service trade deficit with the US is primarily concentrated in three areas: travel (including education), intellectual property royalties, and transportation.

China's trade deficit with the US in travel services has expanded continuously. Data from the USDOC show that in 2023, Chinese tourists made approximately 1.1 million visits to the US, with their spending accounting for 14 per cent of US service exports to China. Tourism, medical treatment, and studying abroad remain the primary categories of service trade consumption for those travelling from China to the US. According to the USDOC, US exports of travel services (including education) to China grew from US$2.31 billion in 2001 to US$20.23 billion in 2023, representing an 8.8-fold increase.

China's payments of intellectual property royalties to the US have increased steadily. In 2023, intellectual property royalties remain a primary source of revenue for US service trade, accounting for 13.1 per cent of its service trade revenues. The intellectual property royalties the US receives from China represent one-fifth of the total royalties obtained from the Asia-Pacific region and account for 5 per cent of US global intellectual property royalty revenue.

TRADE BALANCE ISSUE: The trade balance in goods between China and the US is both an inevitable result of the structural issues in the US economy and a consequence of the comparative advantages and international division of labour between the two countries. China does not deliberately pursue a trade surplus. As a matter of fact, the ratio of China's current account surplus to GDP has decreased from 9.9 per cent in 2007 to 2.2 per cent in 2024.

A comprehensive and in-depth assessment is required to objectively evaluate whether China-US bilateral trade is balanced, as it cannot be based solely on trade in goods. In today's context of expanding economic globalisation and the prevalence of internationalised production, the scope of bilateral economic and trade relations has long since extended beyond trade in goods. Services and the local sales of domestic enterprises' branches in the other country (local sales generated by two-way investment) should also be included. When the three factors of trade in goods, trade in services, and the local sales of domestic enterprises' branches in the other country are taken into account, it can be seen that the economic and trade benefits gained by China and the US are roughly balanced.

Data from the USDOC show that in 2023, the US registered a surplus of US$26.57 billion in service trade -- a notable advantage for the US. Furthermore, in 2022, the sales revenue of the US-owned enterprises in China reached US$490.52 billion, significantly exceeding the US$78.64 billion in sales revenue generated by Chinese-owned enterprises in the US. The gap of US$411.88 billion underscores the more pronounced advantage of American enterprises in multinational operations.

Interestingly, the US trade deficit has increased globally, while the proportion attributable to China has decreased. According to the data of the BEA, USDOC, China's share of the total US deficit of trade in goods has fallen in each of the past six years, from 47.5 per cent in 2018 to 24.6 per cent in 2024, while the US trade deficit with other countries and regions has increased substantially in the same period.

In 2024, the US international deficit of trade in goods reached US$1.2 trillion, an increase of 13 per cent year on year, the fourth consecutive year that had exceeded US$1 trillion.

China's foreign trade is characterised by large volumes of both imports and exports, a pattern mirrored in China-US trade. The value-added accrued by China from much of the export of processed manufactured goods represents only a minor fraction of the total value of all commodities. However, current trade statistics methods calculate China's exports based on their gross value (the full value of goods exported by China to the US). Calculated by the trade in value-added method, the US trade deficit with China would significantly decrease.

China expanding imports demonstrates China's proactive commitment as a responsible major country and constitutes a significant contribution to global economic development. Since November 2018, the China International Import Expo (CIIE) has been held annually in Shanghai. Both the number of participating countries and the intended transaction value have shown year-on-year growth, with cumulative intended transaction value exceeding US$500 billion. In 2024, China's imports totalled RMB18.4 trillion, up 2.3 per cent year on year, with the value of imports reaching a record high. China has maintained its position as the world's second-largest import market for the 16th consecutive year.

China has systematically expanded the potential of its vast market, providing increased opportunities for countries worldwide. In 2024, China imported RMB9.86 trillion of goods from the Belt and Road Initiative partner countries, up 2.7 per cent, which accounted for 53.6 per cent of the country's total import value. Since December 1, 2024, China has implemented a policy granting zero-tariff treatment for 100 per cent of tariff lines to all least developed countries with which it has diplomatic relations, which led to an 18.1 per cent growth in imports from relevant countries in the first month. In the current period and for some time to come, China possesses substantial potential for import growth. It is projected that by 2030, the cumulative value of imports from developing countries alone is expected to exceed US$8 trillion.

Actively expanding imports is also a key part of China's strategy for high-level opening up. It will continue to use the major platforms such as the CIIE, China Import and Export Fair, China International Fair for Trade in Services, and China International Consumer Products Expo to boost imports. China will also develop national-level demonstration zones for the creative promotion of imports, steadily facilitate growth in imports, and explore more potential. The goal is to transform China's vast market into a shared global market, injecting new impetus into the world economy.

INVESTMENT & COOPERATION: China and the US are important bilateral investment partners. The US is a major source of foreign investment for China. According to the statistics of the Chinese Ministry of Commerce (MOFCOM), by the end of 2023, the actual accumulated amount of US investment in China was US$98.23 billion.

In 2023, the US set up 1,920 new enterprises in China, with an actual investment of US$3.36 billion, up 52 per cent from the previous year.

The US is also an important investment destination for China, and Chinese companies' direct investment in the US has grown rapidly and significantly. The statistics released by MOFCOM show that by the end of 2023, China's direct investment in the US had reached roughly US$83.69 billion, covering 18 sectors of the national economy. Chinese companies have established over 5,100 overseas enterprises in the US, with more than 85,000 local employees. China has also made a significant financial investment in the US. According to the US Department of the Treasury, as of the end of December 2024, China owned US$759 billion of US treasury bonds, as the second-largest foreign creditor of the US.

China-US economic and trade cooperation has created a large number of employment opportunities for the US. According to an estimate by the US-China Business Council, the number of American jobs supported by exports to China was 931,000 in 2022, ranking third among all countries, behind only Canada and Mexico.

The trade cooperation has also created a large quantity of business opportunities and profits for American enterprises. China has a vast market and continuously growing consumer demand. For example, Tesla's sales in China have continued to grow, surpassing 657,000 units in 2024, up 8.8 per cent year on year to a new historical high. More than 10 American insurance companies have subsidiaries in China. American financial institutions, such as Goldman Sachs, American Express, Bank of America, and MetLife, have achieved substantial investment returns as strategic investors in Chinese financial institutions.

Bilateral economic and trade cooperation has facilitated the upgrading of American industries. Through cooperation with China, American multinational corporations have boosted their international competitiveness by integrating the strengths of resources from both countries. Apple designs and develops mobile phones in the US, assembles and manufactures them in China, and sells them in global markets. Tesla has established wholly-owned mega factories in China, expanded production capacity, and exported to global markets. China has taken on certain production processes for American enterprises, which enabled the US to allocate resources such as capital to innovation and management, and focus on the development of high-end manufacturing and modern services. It has driven US industry towards higher value-added and more technologically advanced sectors, reducing US domestic pressure for energy consumption and environmental protection.

The cooperation has also brought tangible benefits to American consumers. The US has imported from China a large quantity of consumer goods, intermediate goods, and capital goods, which has supported the development of the supply and industrial chains of the US manufacturing industry, provided US consumers with more choices, lowered their cost of living, and increased the real purchasing power of the American people, especially the low and middle-income groups. It has also generated substantial business opportunities and profits for Chinese companies. By investing in the US, which is the world's largest consumer market and the most mature capital market, Chinese firms can expand their sales channels, increase the impact of their international brands, attract global clients and partners, and access financing more easily, thereby supporting rapid business growth.

US companies in China have provided experience for their Chinese counterparts in technical innovation, market management, and institutional innovation, driving Chinese companies to accelerate their transformation and upgrading and improve industry efficiency and product quality.

END NOTE: The Trump tariff, no doubt, severely violates World Trade Organisation (WTO) rules, severely undermines the rules-based multilateral trading system, and disrupts the global economic order. The Chinese government strongly condemns and resolutely opposes such move.

Their spokesman said, by taking such action, the US defies the fundamental laws of economics and market principles, disregards the balanced outcomes achieved through multilateral trade negotiations, ignores the fact that the US has long benefited substantially from international trade, and weaponises tariffs to exert maximum pressure for selfish interests. This is a typical act of unilateralism, protectionism and economic bullying. Under the guise of "reciprocity" and "fairness," the United States is playing a zero-sum game to pursue in essence "America First" and "American exceptionalism."

China is an ancient civilisation and a land of propriety and righteousness and the people in the US have shown extraordinary entrepreneurship. So, the joint collaboration on economy and trade between the two superpowers is needed for bringing back stability in the global trade and economy.

Hedayet Ahmed is an analyst on political economy.​
 

China waives tariffs on some US goods, but denies Trump's claim that talks are underway
REUTERS
Published :
Apr 25, 2025 21:01
Updated :

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US President Donald Trump holds a chart next to US Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, US, April 2, 2025. Photo : REUTERS/Carlos Barria

China exempted some US imports from its steep tariffs in a sign on Friday that the trade war between the two countries could be easing, though China quickly knocked down US President Donald Trump's assertion that negotiations were underway.

Business groups said China has allowed some US-made pharmaceuticals to enter the country without paying the 125 per cent duties that Beijing imposed earlier this month in response to Trump's 145 per cent tariffs on US imports.

Also, a list of 131 product categories said to be under consideration for exemptions was circulating among some businesses and trade groups. Reuters could not verify the list, which includes vaccines, chemicals and jet engines, and China has not yet communicated publicly on the issue.

Trump's administration has in recent days signaled it is looking to de-escalate the confrontation between the world's two largest economies, and Trump himself told TIME magazine that talks were taking place and that Chinese President Xi Jinping had called him.

"I don't think it's a sign of weakness on his behalf," he said.

China denied that discussions were happening.

"China and the US are NOT having any consultation or negotiation on #tariffs. The US should stop creating confusion," the Chinese Embassy in Washington wrote on social media.

In addition to the steep tariffs on China, Trump has announced targeted tariffs on dozens of other countries, which he has suspended until July 9. That has set off a scramble among US trading partners to strike individual trade deals with Washington before the deadline -- a tall order, given that past trade deals have typically taken years to negotiate.

Trump told reporters at the White House that he was very close to a deal with Japan. That is seen by analysts as a "test case" for other bilateral trade agreements, though talks could be difficult. Some expect Prime Minister Shigeru Ishiba and Trump to announce a pact when they meet at the G7 summit in Canada in June.

Trump separately told TIME that he had made "200 deals" that would be completed within three to four weeks, though he declined to provide specifics. He said he would consider it a "total victory" if tariffs were still 20 per cent to 50 per cent a year from now.

The office of the US Trade Representative said it had held a productive meeting with South Korea on Friday.

Trump has argued that his thicket of trade barriers will revive US manufacturing industries that have been hollowed out by global competition. Economists, however, broadly warn that they would lead to higher prices for US consumers and increase the risk of recession.

In addition to the country-specific tariffs, Trump has also imposed a blanket 10 per cent tariff on all other US imports and higher duties on steel, aluminum and autos. He has also floated additional industry-specific levies on pharmaceuticals and semiconductors.

European and Asian stocks headed for a second straight week of gains on Friday and the dollar eyed its first weekly rise in more than a month, as investors took comfort from signs the US and China were prepared to pull back from their trade war. Wall Street's main indexes opened slightly lower.​
 

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