US-China Trade War

Battles lines drawn between the world's two largest economies

Background and explainers on the trade war between China, led by President Xi Jinping, and the United States, and its President Donald Trump. Having started in July 2018, the prolonged conflict reached a turning point in January 2020 with the signing of the phase one trade deal, but not after it had weighed heavily on the global economy for 18 months due to additional import tariffs levied by both China and the US. The US has accused China of unfair trading practices, including intellectual property theft, forced technology transfer, lack of market access for American companies in China and creating an unlevel playing field through state subsidies of Chinese companies. China, meanwhile, believes the US is trying to restrict its rise as a global economic power.

OVERVIEW
LATEST NEWS
Inside Out|Someday soon China might dominate the hydrogen supply chain too
EU and US manufacturers already complaining of Chinese competition in solar power and electric vehicles won’t like China’s hydrogen policy. As it moves to produce hydrogen using renewable energy, this could become an important part of the world’s low-carbon future.
David Dodwell
David Dodwell
1
Diplomacy
US cannot ‘say one thing and do another’, Chinese leader tells Blinken
China-US ties are more stable but still at risk if ‘red lines’ are crossed, China’s Foreign Minister Wang Yi said before US Secretary of State Antony Blinken met Chinese President Xi Jinping on Friday.
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China
No imminent US sanctions on Chinese banks for Russia trade: Yellen
But American treasury secretary says the policy option is something Washington ‘would be prepared to use if necessary’.
9
China
US trade report keeps China on priority watch list as Blinken visit begins
Intellectual property protection infringements along with technology transfer, counterfeiting and other concerns cited.
14
China Business
Apec’s business lobby propose to defuse US-China trade tension
The plan would next be submitted to the relevant ministries in each of the 21 member economies of Apec before appearing on the agenda of the Apec Leaders’ summit in Lima in the week of November 10.
2
Diplomacy
Tough talks on the table as Antony Blinken arrives for 3-day trip to China
Trade, Ukraine among topics on the agenda, with Blinken expected to pressure China to urge its firms to stop supplying dual-use goods to Russia or face more punitive measures.
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The View|Western protectionism will fail – China’s success isn’t down to subsidies
Complaints of Chinese overcapacity and dumping may be useful in justifying US, EU subsidies and trade barriers but China’s success is really due to its innovation and scale.
Andy Xie
17
China
US exports to China down 4.3% year on year amid trade tensions: report
Stunted economic growth on mainland and Sino-American political challenges weighed on 2023 decline led by agricultural and semiconductor shipments.
3
Diplomacy
China rejects restraints on Russia trade as top US envoy travels to Beijing
Report on possible sanctions on Chinese banks draws sharp rebuttal from Foreign Ministry, as US Secretary of State Antony Blinken heads for talks with Chinese leaders.
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Diplomacy
US is ‘stubbornly’ trying to contain China, Beijing says ahead of Blinken visit
Washington has ‘seriously harmed’ Chinese interests with moves to suppress the country’s economy and trade, foreign ministry official says.
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China Opinion
Opinion|Stable footing? In reality, US-China trade tensions are intensifying
As trade investigations into Chinese shipbuilding, steel and aluminium suggest more tariffs and a review of Trump-era tariffs unlikely to end in a rollback, expect China to respond with force.
5
Global Economy
‘Why so many foreigners?’ EV hungry buyers take centre stage at Canton Fair
Foreign buyers have returned to China’s largest trade exhibition, drawn by the array of new energy vehicles and other green products on offer at the Canton Fair.
6
China
Blinken visiting China for ‘bilateral, regional and global issues’: official
Meetings with Foreign Minister Wang Yi expected to cover unfair trade practices and industrial overcapacity in ‘productive and constructive’ trip.
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China Economy
China set to raise cost of key chemicals from US as bilateral trade turns sour
China has revealed hefty penalties on imports from the US of an acid used as a preservative as trade relations between the two countries appear likely to return to an outwardly acrimonious track.
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Editorial|All losers after Biden plays China card in attempt to win votes
Latest US protectionist moves targeting Chinese steel and aluminium imports, together with other measures, risk another damaging round of trade war.
SCMP Editorial
3
Global Economy
US tests China’s metal with steel tariff plan, opening new front in trade war
The US’ proposed tripling of tariffs on Chinese steel imports would be the first move in a tit-for-tat struggle that would expand the bilateral trade war, analysts said – and fuel grumblings over industrial overcapacity.
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China
Biden accuses China of ‘cheating’ amid call for added steel, aluminium tariffs
‘I’m not looking for a fight with China but competition, fair competition,’ the president tells cheering steelworkers in Pennsylvania.
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China Opinion
Opinion|US-China trade rivalry boils down to competition for jobs and prosperity
‘Bidenomics’ and Xi’s common prosperity share strikingly similar beliefs but because both economies are trade-linked and seek tech advancement, conflict becomes inevitable.
9
China
US review of US$300 billion worth of Chinese imports almost done: trade envoy
Biden administration ‘taking a serious look’ at existing tools to deal effectively with Beijing’s policies causing ‘dependencies and vulnerabilities’.
6
United States & Canada
Yellen to meet US allies during IMF, World Bank meetings, press China on growth
US Treasury Secretary’s meetings to include talks with China on ‘balanced growth’, a new dialogue to address China’s excess industrial capacity for EVs, solar panels and other clean energy goods.
5
China Opinion
Opinion|America’s sick obsession with China will ruin itself and the world
The US fixation on a China threat distracts it from its serious domestic challenges and holds the world back from addressing critical challenges, from climate change and wars to AI risks.
52
China Opinion
Opinion|US foreign policy is hobbled by an obsession with winning against China
As long as the US misreads the strategic landscape and assumes ideological superiority, policy recommendations made on this basis will miss the mark. Reductionist thinking that is a relic of the post-World War II era will only create a dangerous environment for American interests and the world.
33
China Opinion
Opinion|Amid titanic US-China clash, Europe must make its own plans quickly
While the US and China settle in for a drawn-out economic war, Europe is unlikely to have the luxury of toughing it out. China makes the goods and the US has the dollar, where does that leave Europe?
2
China Opinion
Opinion|As world erects barriers against Chinese exports, what about free trade?
Slamming China for capitalising on its manufacturing advantages to produce competitively priced exports is hypocritical and against the principles of free trade.
20
Global Economy
How far did Janet Yellen’s trip move the ball for US-China relations?
Treasury Secretary Janet Yellen ended her week-long trip to China on Tuesday, saying the US had been able to ‘move the ball’ on key issues, while analysts said the visit had focused on ‘practical short-term issues’.
22
China Opinion
Opinion|First Japan, then China: guess why the US is worried about ‘overcapacity’
Washington’s concerns about the impact of China’s excess production on American firms are clearly more political than economic. It’s the US market’s high prices that hinder widespread EV adoption, but American sentiment on competing economies is what counts in an election year.
16
Global Economy
Yellen in China: ‘difficult conversations’, overcapacity spat add to tensions
US Treasury secretary says Beijing needs to make policy changes, while warning that Washington and its allies fear ‘global spillovers’ from China’s trade actions.
98
China Economy
As Yellen slams China’s EV overcapacity, minister calls such claims ‘groundless’
Speaking in Paris to Chinese makers of electric vehicles and lithium batteries, commerce chief Wang Wentao vows Beijing will ‘fully support and defend’ their rights as Western pressure mounts.
65
China Economy
China’s Li Qiang dismisses ‘overcapacity’ concerns in talks with Janet Yellen
Premier Li urges Washington to view industrial capacity ‘objectively’ during meeting with visiting US Treasury Secretary Yellen, who raised issue of excessive Chinese exports, especially new energy vehicles and solar panels.
78
China
Expatriate Chinese entrepreneurs find a new gold rush destination in Mexico
Seeking economic opportunity, Chinese merchants build bustling wholesale markets, sell Made in China goods and deal with occasional resistance from Mexican vendors.
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