Laura Bicker
Chinese correspondent
Reuters
Will discussions take place between Donald Trump and Xi Jinping?
“China will fight in the bitter end of any trade war,” said the spokesman for the Beijing Foreign Ministry of Foreign Affairs, after China announced tit-form prices on agricultural imports in the United States.
This came a few minutes from a new American levy of 10% on Chinese imports which entered into force Tuesday – which adds to the existing prices of both Trump’s first mandate and those announced last month.
But the latest reprisal measures in China are an opening swing, not a direct punch.
It shows a certain force, and it has the potential to prick parts of the United States, but also leaves room to negotiate or degenerate if necessary.
“We advise the United States to put away its intimidation face and come back to the right track of dialogue and cooperation before it is too late,” added the spokesman for the Ministry of Foreign Affairs, Lin Jian.
This is the second tariff cycle that the two countries have imposed since February. But this time, China strikes Donald Trump where it has the potential to injure – targeting farmers, who are among its main supporters.
Almost 78% of agriculture counties in the United States approved Trump in 2024.
China is one of their largest customers for products such as chicken, beef, pork and soybeans and now all these products will face a 10 to 15% tax that will come into force on March 10.
“The prices are generally negative for American agricultural markets. It will have a lower influence on prices. There are enough corn and soybean supplies in the world for China to make a change, it is more a problem for the United States, because 30% of American soy products are still in China,” Ole Hoa, Ikon administration products, told Reuters.
Beijing may hope that this will apply some pressure on the Trump administration before any potential negotiation.
The latest announcements increase the prospect of a total trade war between the two best world economies and in various ministry declarations, China indicates two very clear things.
First, he is ready to continue fighting.
“Pressure, coercion and threats are not the right way to deal with the Chinese party,” said Lin.
But second, he is also ready to speak.
Beijing does not accelerate rhetoric or prices in the same way as in 2018, during the last Trump administration. At the time, he imposed a 25% rate on American soybeans.
“China’s prices have a limited impact of American products and remain below the 20%level. It is by design. The Chinese government signals that they do not want to degenerate, they want to defuse,” according to Pay, a Trivium China analyst.
The prospect of talks was raised last month.
The White House said there would be a call between President XI and Donald Trump. It never happened.
So, these talks will take place and who will take the first step?
Reuters
A new 10% American levy on Chinese imports that came into force on Tuesday is likely to harm Beijing
It is unlikely that China will want to leave first. He will not want to be seen going to Washington.
And unlike Canada and Mexico, Beijing has not announced new measures to target the flow of fentanyl. He simply repeated the past statements that fentanyl is an “American problem” and that China has the strictest drug policies in the world.
On Tuesday, the Council of State published a white paper entitled “Control of fentanyl substances – the contribution of China”.
He describes the measures that Beijing says that she has already made to repress fentanyl crimes and the pioneering chemicals used to make the drug. He adds that he is “fully fulfilled international drug control obligations”.
Thus, although China has not won the phone in Washington, this document is part of the country’s message that seems to say – we already do what we can on fentanyl.
Money Winries
Despite the fact that China “will not give in”, these last prices are required to prick.
The 20% cumulative tax on all Chinese products comes on a series of prices that Trump imposed on his first mandate on tens of billions of dollars in Chinese imports. And the Chinese population is already concerned about a slow economy.
Thousands of delegates come together in the capital this week to participate in an annual parliamentary session, most of which will be focused on the economy.
Housing prices are still decreasing and young people unemployment remains stubbornly high. A potential trade war with the United States could encourage more concern for money for businesses and consumers across the country at a time when the Communist Party wants people spending to help the economy develop.
But Beijing will also see an opportunity while Donald Trump is uncertainty among his international allies.
He can partly put the blame for any other economic problem at Washington’s door and say that it is the fault of the United States for having triggered a trade war.
The Xinhua media state store has published in recent days a series of parodies mocking from the United States which are ready to tax its allies and neighbors. The sketches portray Washington as an intimidator echoing the words from the leaders of Canada and Mexico.
At the same time, the Chinese Ministry of Commerce reiterated that it was ready to work with other countries around the world to combat Trump’s prices.
Beijing seems to be looking for potential allies in this trade war while trying to launch Washington as a troublemaker who is ready to target friends and enemies.
At a time when Donald Trump’s “America First” doctrine has a lot in Europe and the United Kingdom wondering if the United States World Order is already in doubt.
