China Unveils Countermeasures Against US in Escalating Trade War
In a significant escalation of the ongoing trade tensions between the United States and China, the Chinese government has announced a series of countermeasures against the U.S. The measures include imposing a 34% tariff on all imports from the U.S., effective April 10, 2025, as well as adding 16 American entities to an export control list and 11 American companies to an "unreliable entity list." These moves mark a new phase in the trade war between the two global economic giants. The Chinese government's decision to impose tariffs on U.S. goods is in response to the U.S. government's recent declaration of "equivalent tariffs" on Chinese products, which China views as a typical unilateral bullying tactic that severely violates WTO rules and harms China's legitimate rights and interests.
4 April 2025
The tariffs will apply to all goods originating from the U.S., with certain exceptions for goods that were already en route to China before the tariff imposition date. In addition to the tariffs, China's Ministry of Commerce has announced that it will implement export controls on certain rare earth minerals, which are crucial for the production of high-tech products, including electronics and renewable energy technologies. The ministry has also launched an investigation into the import of medical CT scanners from the U.S. and India, citing concerns over their impact on China's domestic industry. Furthermore, China has taken steps to restrict the activities of certain American companies in China, including suspending the import licenses of six U.S. companies and adding 11 American companies to an "unreliable entity list," which prohibits them from engaging in business activities with Chinese companies.
China's countermeasures are not only a direct response to the US trade war but also a defense of its own economic security and sovereignty. The implementation of these measures is expected to have a profound impact on US businesses and the global market, potentially altering the landscape of international trade. By taking a firm stance, China aims to protect its domestic industries and interests, while also sending a strong message to the US and other trading partners about its commitment to defending its economic autonomy. As the world's second-largest economy, China's countermeasures are likely to have far-reaching consequences, influencing trade flows, investment patterns, and economic growth prospects globally.
The trade war between the US and China has introduced significant uncertainty into the global economy, with many countries closely monitoring developments to assess potential impacts on their own economies and to adjust their trade policies accordingly. The US might respond with its own set of countermeasures, further escalating the situation, while other countries, particularly those heavily involved in trade with both the US and China, will be watching closely to determine the next phase of the trade war. China has also taken the dispute to the World Trade Organization (WTO), suing the US over its "equivalent tariffs" and calling on the US to immediately correct its erroneous practices and cancel its unilateral tariffs.
The global market has already reacted to China's countermeasures, with US stock futures plummeting and European stock markets experiencing significant declines. The situation demands careful observation and strategic decision-making from governments and businesses worldwide to mitigate potential negative impacts and capitalize on any emerging opportunities. China's bold move to impose tariffs on US goods and take the US to the WTO has sent a strong message to the international community, demonstrating its determination to defend its economic interests and uphold the rules-based multilateral trading system. As the trade war between the US and China continues to escalate, the global economy is bracing for the potential consequences of a prolonged and deepening conflict.
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