China has been adamant on its position to defend its lawful rights and interests. This is in large part a response to the deepening trade war with the United States. In continuation, the Ministry of Commerce cautioned that the U.S. needs to repent on their trade policy. If it doesn’t, China will respond firmly to safeguard its own interests. On the surface, it would be easy to dismiss these comments, given the context of deteriorating trade relations. Both countries have implemented multiple rounds of retaliatory tariffs in return.
In a huge reversal, China has ceased their purchases of U.S. soybeans. This once ubiquitous commodity has long been a foundation of the two countries’ agricultural trade. This decision comes in light of similar responses to U.S. tariffs and export controls. The retaliatory exchange of port fees has reached new heights, deepening the feud between the two economic juggernauts.
In response, the Ministry of Commerce announced an escalation opposite the U.S. The groups claimed that its actions have greatly polluted the atmosphere required for effective trade negotiations. Meanwhile, China is pressuring the U.S. to expediently remedy its non-compliant practices. These concerns have been at the heart of recent stalemate on the House and Senate floors.
What recent trade data just released by China sheds light on is a particularly troubling trend. Exports to the U.S. are in recession, having declined for six consecutive months on a year-over-year basis. In the month of September alone, they understandably dropped by an astonishing 27% from last year. Retaliating against U.S. trade policies, China has become even more aggressive in their rare earths restrictions. These materials are key to electronics manufacturing.
Chinese Ministry of Foreign Affairs spokesman Lin Jian could hardly have been more emphatic. Specifically, he called on the U.S. to withdraw its latest threat of a 100% tariff and other discriminatory export control actions.
“China urges the U.S. to promptly correct its erroneous practices,” – Lin Jian
Even as negotiations have continued, China has refused to budge from its hardline stance. The country is resolute in continuing to state that under no circumstances will it give up any of its legitimate rights and interests. Their mutual trade war is already heating up. Most importantly, China demonstrates a very strong central will to retaliate robustly against disruptive U.S. policy.
The international community has its eyes very much on what is happening. need to be mindful of as these changes will have far-reaching effects on China and the U.S. as well as global trade patterns. The situation as it continues to unfold highlights the often confounding and perplexing nature of trade spat between two of the planet’s largest economies.
