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
Photo: PLA
Daily Pulse|Military drills around Taiwan, ‘lethal aid’ and more
Mainland China kicked off two days of military exercises around Taiwan, as it vowed to punish “separatists” after Taiwan’s newly inaugurated president lauded democracy and urged Beijing to stop political and military “intimidation” of Taiwan. Also in the news this week: the UK said China is making available “lethal aid” to Russia and more.
China
US should reform China tariffs to target tech transfers, panel hears
Make ‘knowledge-intensive sectors’ a focal point and remove import taxes that offer no strategic value and hit working Americans hard, economist says.
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Global Economy
China’s solar panel sector seeks to curb ‘vicious competition’ with big moves
Falling prices and ‘operational pressures’ are flagged at a meeting of the China Photovoltaic Industry Association amid domestic overcapacity concerns.
11
China Opinion
Opinion|The smart way for China to respond to Biden’s new tariffs
China has a much better chance of nudging the European Union on free trade. Beijing should hit US cars with stiff tariffs to send a warning signal to Brussels.
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Daily Pulse|China bides time as US, EU consider trade barriers
Six years ago, the US and China were nearly matching tariff for tariff in the outbreak of a trade war that appears to be reigniting as Washington outlines stiffer curbs on a broad array of Chinese imports. Beijing is keeping its powder dry for now as it calls out the political nature of planned tariff increases.
China
As trade war brews, EU scrambles to gauge what Chinese retaliation lies ahead
Officials ponder what countermeasures await European resistance against ‘market-distorting’ Chinese subsidies on electric vehicles.
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China
China weighs car tariffs to retaliate against US and EU moves, trade group says
Washington has announced tariff hikes on a wide range of Chinese goods, while Brussels has taken actions to tackle Chinese subsidies to various industries.
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United States & Canada
US, Europe must respond in ‘united way’ to Chinese overcapacity: Yellen
Washington is concerned that Chinese government support is leading to more production capacity than global markets can absorb, driving cheap exports and stifling growth elsewhere.
15
Global Economy
Import tariffs ‘inevitably’ only making US inflation worse: China commentary
Commentary from China’s top economic planner says Washington’s anti-globalisation, decoupling and disconnection efforts have ‘inevitably’ hurt US inflation.
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The View|US-China EV trade war shows how narrow interests win over greater good
China’s inter-regional rivalries and US inter-party politics are colliding in the fight for global electric vehicle dominance, pushing the world towards a future of walled camps engaged in escalating mercantilism while putting our common destiny at risk.
Winston Mok
Economic Indicators
Why China’s local governments may have outsized role in overcapacity conundrum
The tsunami of new-energy manufacturing flooding the industry is not the first time a wave of Chinese goods has forced institutional upheavals and left foreign firms with little room to compete.
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World Opinion
Opinion|Why Biden won’t beat China by out-Trumping Trump on trade tariffs
Joe Biden’s decision to double down on Donald Trump’s China tariffs harks back to policies that might have worked in the 1980s, and is a loser. He was on the right track with building US economic muscle at home, and he and the country would be better served by focusing on that.
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Inside Out|Western concerns about Chinese oversupplies are woefully misplaced
The West misunderstands China’s efforts at boosting innovation and satisfying domestic demand as seeking to undermine foreign competitors. While oversupply is a valid concern, a bigger problem is concentrated production among a small cluster of firms which US tariffs on China will not address.
David Dodwell
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World Opinion
Opinion|Financial Armageddon: the world just can’t afford an endless US-China trade war
Those who curb real trade and expand financial sanctions don’t seem to understand the likeliness of a destructive outcome for all. The West is wrecking the foundations of its prosperity.
15
Outside In|The real reason for US’ new anti-China tariffs (and it isn’t unfair trade)
In enacting yet another round of tariffs on Chinese exports, the Biden administration has its sights set firmly on its fortunes in November’s election. The US president has to shore up Democrats’ support in rust belt states and clearly thinks American firms and consumers are ready to pay the price tariffs will bring.
David Dodwell
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Global Economy
Explainer|From EVs to face masks, how key are the 14 Chinese items on the US tariff list?
The US announced plans on Tuesday to increase tariffs on 14 categories of products from China under Section 301 of the Trade Act of 1974, covering US$18 billion in imports.
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Global Economy
Be it Trump or Biden at the US helm, China steels itself for political crossfire
Analysts say Beijing is preparing ‘for all types of situations’ in a trade war with the US that shows no sign of abating after six years, as the leading presidential candidates vow to turn up the heat.
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South Asia
India steel mills ‘vulnerable’ to surge in cheaper China imports after US tariffs
Weak steel demand at home has encouraged China, the world’s biggest producer of the alloy, to offload its surplus stocks by offering competitive rates to Indian buyers, hurting Indian producers.
1
Global Economy
What’s the real impact of fresh US tariffs on China, and what happens next?
Analysts discuss how Beijing could respond to Washington’s latest trade offensive, and how the impact could have repercussions beyond China’s borders.
60
Asia Opinion
Opinion|Vietnam’s Catch-22 in courting China as a rare earth partner
In many ways, China is the perfect partner for Hanoi’s rare earth processing industry ambitions. But standing in the way is Vietnam’s wariness of corporate exploitation and taking sides in the US-China rivalry, as well as its political turmoil.
2
World
US-China trade war heats up with fresh tariffs
Diplomacy
Biden says new tariffs will protect US industries from firms subsidised by China
US President Joe Biden also gives his action a political edge, criticising Donald Trump, his predecessor and challenger for re-election, for failing to increase US exports and boost manufacturing.
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Diplomacy
Beijing ‘prepared for rainy days’ if Trump is re-elected, academic says
China should also ‘prepare for the worst’ but ‘do its best’ in response to further trade and tech frictions, Yang Jiemian tells summit in Hong Kong.
14
China Economy
Beijing hits back as US proposes tariffs on China goods for ‘unfair’ policies
Tariffs would rise to 100 per cent from 27.5 per cent on China-made electric vehicles (EVs) and to 50 per cent on its semiconductors and solar cells.
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China Business
China EVs: punitive US tariffs to hurt market access, undermine export drive
Prohibitive tariffs await Made in China electric vehicles bound for the US. Can the nation’s producers keep growing their sales and brand awareness without making inroads into the US and European markets?
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China Business
Flood of China’s used cooking oil spurs call to hike US levies
US imports of used cooking oil more than tripled in 2023, with more than half coming from China, according to the US International Trade Commission.
2
Global Economy
China’s EV overcapacity may set it on a political collision course with the US
Fresh US tariffs targeting China’s new-energy sector are imminent, threatening to thwart export efforts aimed at alleviating a market oversupply.
137
United States & Canada
‘Significant’ Chinese response to US tariffs possible: Janet Yellen
The United States is reportedly planning to raise tariffs on Chinese clean energy goods such as electric vehicles, batteries and solar products, with an announcement expected this week.
29
Daily Pulse|US prepares to sharply raise tariffs on Chinese new-energy goods
The administration of US President Joe Biden will reportedly soon roughly quadruple tariffs on Chinese electric vehicles and sharply raise tariffs on other goods. The plans would be a dramatic move to counter perceived excess production capacity in China in a US election year.
Southeast Asia
‘Friends with all countries’: Indonesia’s Prabowo won’t take sides in US-China row
Indonesia’s President-elect Prabowo Subianto’s comments come amid a protracted US-China trade war that’s heightened as the Biden administration is set to quadruple tariffs on Chinese EVs.
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