The media published information according to which China warned the United States of its intention to impose retaliatory trade measures against the US if Washington announces new reciprocal tariffs on goods imported from this Asian country next week.
Beijing officials conveyed the mentioned warning during a video call with United States Trade Representative Jamieson Greer in the present week. The relevant information was published by the state-run media in China.
The journalists noted that if Washington intends to harm Beijing’s interests, the Asian country will decide on resolutely retaliatory measures. It is worth noting that the media did not specify the sources of information about China’s warning to the United States. These journalists have also repeatedly stated that Beijing is thinking about trade. Probably, the mentioned largely abstract statements imply that the Chinese authorities are working on an Asian country’s trade strategy that takes into account the circumstances and conditions of the currently emerging configuration of global economic reality.
The media also did not publish which countermeasures from Beijing will take effect if Washington announces new tariffs.
China’s Vice Premier He Lifeng had candidacy and in-depth exchanges on key issues in bilateral economic and trade relationships with Jamieson Greer during their video call on Wednesday, March 26. This was reported by the Asian country’s state media.
At the same time, the US readout on the exchange said that Jamieson Greer expressed serious concerns about China’s trade policy. It was also noted that both participants of the video call agreed on the importance of maintaining communication going forward.
President of the United States Donald Trump intends to announce on April 2 a sweeping reciprocal tariff program, which is expected to affect Washington’s main trading partners. These measures will become a new phase in the escalation of tensions between the world’s largest economies. It is worth noting that Donald Trump has already imposed a cumulative 20% surtax on goods imported from an Asian country.
On Friday, March 28, the head of the People’s Republic of China, Xi Jinping, held court with dozens of the world’s top executives. This meeting reflects the Asian country’s desire to raise foreign investment amid the gradual escalation of the trade confrontation between Beijing and Washington.
Xi Jinping assured global investors of China’s economic prospects. Against the background of the tightening external reality, it is very important for the Asian country to stop the decline in the volume of foreign financial injections. The Chinese economy, currently the second largest in the world, has internal growth potential, but additional external investment is also essential.
Xi Jinping said that the Asian country is a fertile ground for financial injections and the thriving of foreign enterprises. This statement was addressed to over 40 executives including FedEx chief executive officer Raj Subramaniam and Qualcomm chief Cristiano Amon.
China’s state-run media also released information according to which, at the mentioned meeting, Xi Jinping stated that the Asian country was, is, and inevitably will continue to be an ideal, safe, and promising destination for foreign investment. He also confirmed a pledge to improve market access, ensure equal treatment of foreign businesses, and strengthen communication with investors from other states.
Currently, overseas companies provide a third of China’s exports and imports. Also, the share of these firms in the structure of the total tax revenue of the Asian country is one-seventh. Moreover, foreign companies create more than 30 million jobs in China. This was announced by the head of the Asian country on Friday.
Xi Jinping called on multinational corporations, which, according to him, wield significant international influence, to speak up with reason, take pragmatic action, and resist any attempts to turn back the clock on progress. He also urged foreign companies not to blindly follow actions that violate the security and stability of the global industrial supply chain. This statement is probably an allusion to the measures of the Donald Trump administration, which Beijing characterizes as destructive in terms of their impact on the order of things in the space of global economic cooperation.
Xi Jinping also said that a country that blocks the paths of other states will eventually obstruct itself. In this context, he also noted that decoupling and breaking supply chains harms everyone and leads to nothing.
According to state-run media, several executives spoke at the meeting with Xi Jinping, including Raj Subramaniam, Daimler AG’s Ola Källenius, Sanofi chief Paul Hudson and HSBC chief Noel Quinn. According to state media other executives including Bridgewater Associates’ founder Ray Dalio, BMW chairman Oliver Zipse, and Toyota chairperson Akio Toyoda also participated in the mentioned event.
Many foreign executives have stayed on in Beijing following last weekend’s China Development Forum, where the Asian country’s Premier Li Qiang urged them to resist protectionism in a world of growing instability and uncertainty. More than 80 multinational companies participated in the mentioned forum. This event is an annual event.
Li Qiang said that China has prepared for possible unexpected shocks, which mainly come from external sources.
According to the Asian country’s Commerce Ministry, in a meeting with Chinese Commerce Minister Wang Wentao this week, Apple chief executive officer Tim Cook pledged to increase investment in China’s supply chain, research and development, and the social welfare sector.
Wang Wentao criticized unilateral tariffs from the United States. It was noted that these measures disrupt business operations and add uncertainty to the global economy. At the same time, it was underlined that China is ready to cooperate with the United States to form a more stable policy environment for businesses.
The economic system of the Asian country is currently facing many pressure factors that have a kind of downward impact on the already existing dynamic of gross domestic product (GDP) growth and the prospects for the corresponding process. In this context, the protracted crisis in the real estate sector, low consumer spending, and deflation are painful circumstances for Beijing. At the same time, despite external and internal difficulties, China has set an economic growth target of about 5% for 2025. It is also worth noting separately that the authorities of the Asian country recognize the existence of difficulties and do not deny that these challenges will require certain decisions and actions.
Data from the Chinese Commerce Ministry shows that in the first two months of the current year, the volume of foreign direct investment in the Asian country decreased by 20%. For the whole of 2024, the corresponding figure fell by 27.1%. In monetary terms, it means an amount of 826.3 billion yuan ($113.4 billion). It is worth noting that this figure is the lowest since 2016.
The exodus of foreign business and capital from the Asian country has become more intense amid rising geopolitical tensions and tightening of China’s internal rules related to national security. Beijing cannot change the external reality, at least not on its own. At the same time, the leadership of the Asian country intends to transform the internal circumstances and conditions and is already demonstrating appropriate readiness at the level of official rhetoric. The prolonged slowdown in China’s economic growth and the apparent shortage of upward impulse for local GDP have prompted Beijing to actively raise investments, including from foreign companies, not just from the Asian country’s private businesses.
Xi Jinping held an important meeting last month. The event was attended by Chinese top business executives, including Alibaba founder Jack Ma, Huawei founder Ren Zhengfei, BYD chief executive officer Wang Chuanfu, and Tencent chief Pony Ma. The media described this meeting as a signal that Beijing intends to rely on the technology sector as a source of economic growth. It is also worth noting that for China, this is to a certain extent an existential necessity in the broad sense of the corresponding definition, which is not limited only to the economic aspect. Against the background of the deteriorating state of affairs in the space of geopolitical reality and the gradual degradation of the system of international cooperation, the issue of technological sovereignty is becoming increasingly relevant. In the relevant context, it is worth mentioning that the United States and some of its allies have restricted the export of advanced chips and equipment for the manufacture of microcircuits of the appropriate category to an Asian country. At the same time, full-fledged technological development is impossible without these products, including in the artificial intelligence industry. At the level of official rhetoric, Beijing has already made statements about its desire for technological sovereignty. At the same time, for China, this is a path that lies ahead, rather than an already established order of things. At a meeting with top business executives of the Asian country, Xi Jinping said that now is the perfect time for private Chinese enterprises and entrepreneurs to thrive.
The trade confrontation with the United States certainly threatens the prospects for achieving Beijing’s economic goals. China can take measures to minimize the negative consequences of this situation, but it is almost impossible to completely avoid losses. As part of the countermeasures to Washington’s tightening trade policy measures, Beijing imposed duties on selected US imports of up to 15%, including some agricultural and energy products. Moreover, China has announced new export controls for raw materials.
Chinese State-run media published information according to which Li Qiang signed an order strengthening the Asian country’s anti-sanctions law this week. In this case, it implies the possibility of countermeasures against nations that contain or suppress China or make discriminatory decisions against its citizens or entities.
It is worth noting that, despite the tightening of Washington’s trade policy, Donald Trump has repeatedly stated that he hopes to strike a deal with Beijing. Whether this deal will become a reality is still unknown.
