China Reaches Out to Others as Trump Layers on Tariffs
China is reaching out to other nations as the US layers on more tariffs in what appears to be an attempt to form a united front to compel Washington to retreat. Days into the effort, it's meeting only partial success with many countries unwilling to ally with the main target of President Donald Trump's trade war.
Facing the cratering of global markets, Trump on Wednesday backed off his tariffs on most nations for 90 days, saying countries were lining up to negotiate more favorable conditions.
China has refused to seek talks, saying it would “fight to the end” in a tariff war, prompting Trump to further jack up the tax rate on Chinese imports to 145 percent. It was initially announced on Wednesday as 125 percent but that did not include a 20 percent tariff on China tied to its role in fentanyl production.
China has retaliated with tariffs on US goods of 84 percent which took effect Thursday.
Trump's move was seemingly an attempt to narrow what had been an unprecedented trade war between the US and most of the world to a showdown between the US and China.
“A just cause receives support from many,” Foreign Ministry spokesperson Lin Jian said at a daily briefing on Thursday. “The US cannot win the support of the people and will end in failure.”
EU and ASEAN
China has thus far focused on Europe, with a phone call between Premier Li Qiang and European Commission President Ursula von der Leyen “sending a positive message to the outside world.”
“China is willing to work with the EU to jointly implement the important consensus reached by the leaders of China and the EU, strengthen communication and exchanges, and deepen China-EU trade, investment and industrial cooperation,” the official Xinhua News Agency reported.
That was followed by a video conference between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčović on Tuesday to discuss the US “reciprocal tariffs.”
Wang said the tariffs “seriously infringe upon the legitimate interests of all countries, seriously violate WTO rules, seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order,” Xinhua said.
“It is a typical act of unilateralism, protectionism and economic bullying,” Wang was quoted as saying.
“China is willing to resolve differences through consultation and negotiation, but if the US insists on its own way, China will fight to the end,” Wang said.
Wang has also spoken with the 10-member Association of Southeast Asian Nations (ASEAN), while Li, the premier, has met with business leaders. China has “already made a full evaluation and is prepared to deal with all kinds of uncertainties, and will introduce incremental policies according to the needs of the situation,” Xinhua quoted Li as saying.
Tariff-Wielding Barbarian
In Hong Kong, the spokesperson for the local office of China's Foreign Ministry reiterated Beijing's unwillingness to negotiate with the US under current conditions.
“We must solemnly tell the US: a tariff-wielding barbarian who attempts to force countries to call and beg for mercy can never expect that call from China,” Huang Jingrui wrote in an op-ed appearing in the South China Morning Post.
If the US is truly sincere about starting a dialogue with China, it should “immediately rectify its wrong practices and adopt the right attitude of equality, respect and mutual benefit,” Huang wrote.
Despite their unhappiness with Washington, not all countries are interested in linking up with China, especially those with a history of disputes with Beijing.
“We speak for ourselves, and Australia’s position is that free and fair trade is a good thing," Australian Prime Minister Anthony Albanese told reporters. “We engage with all countries, but we stand up for Australia’s national interest and we stand on our own two feet.”
China imposed a series of official and unofficial trade barriers against Australia in 2020 after the government angered Beijing by calling for an independent inquiry into the COVID-19 pandemic.
India has also reportedly turned down a Chinese call for cooperation, and Russia, typically seen as China's closest geopolitical partner, has been left out of the Trump tariffs altogether. Taiwanese Foreign Minister Lin Chia-lung said on Wednesday that his government is preparing for talks on tariffs with the US.
The US imposed a 32 percent tariff on imports from Taiwan, a close trading and security partner. Taiwan produces most of the high-performing computer chips craved by the US and others and has long enjoyed a trade surplus with Washington.
Yet, Southeast Asian nations such as Vietnam and Cambodia find themselves in a particular bind. They benefited when factories moved to their countries from China due to rising costs. They are being hit by punishing tariffs but have few buyers outside the US and are already operating on razor-thin margins.
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