On Friday, China surprised everyone with an audacious announcement. They took the extraordinary step of applying “special port fees” to those ships that are American flag-operated and American built. This measure illustrates the expensive, growing retaliation against what Beijing terms as a “defensive action” in response to mounting tensions with Washington. This decision follows U.S. President Donald Trump’s recent announcement of a 100 percent tariff on Chinese imports. He defended the move by pointing to China’s new “extraordinarily aggressive” export restrictions on rare-earth minerals.
The new U.S. tariffs are set to begin November 1. This last move will further inflame the already contentious bilateral trade relationship between the two countries. So far, despite retaliation, China has not adopted new tariffs on U.S. goods. It continues warning and threatening action regarding what it perceives to be the unfair trade practices of the United States.
Accusations of Double Standards
In retaliation against the U.S. tariff announcement, China condemned Washington for using “double standards.” The Chinese Ministry of Commerce spokesperson stated, “The relevant US statement is a typical example of ‘double standards.’” China’s impatience and anger are mounting as the U.S. intensifies economic warfare since September. They argue that these measures have uniquely and drastically injured their cause.
The spokesperson explained that repeated high tariff threats have created a hostile environment. This conflict creates an unnecessary roadblock to constructive economic and trade dialogue between the two countries. “These actions … have severely harmed China’s interests and seriously undermined the atmosphere of the economic and trade talks between the two sides,” they said.
The rapidly escalating trade war that began earlier this year has severely worsened bilateral trade relations. The two sides reached a tentative cease-fire a few months ago, but tensions still run high. Recent and unexpected events have begun to make this assumption a matter of grave concern.
Potential Impact on Diplomatic Relations
Tempers are flaring and patience is short. In fact, Trump has recently threatened to scrap his planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month. His claim that China has adopted a “very hostile” tone makes the already precarious diplomatic relations between the two countries worse.
China’s new port fees are similar to US measures taken in April to stimulate American shipbuilding. Beijing has so far stopped short of levying new tariffs on U.S. products. As an example of the type of more aggressive steps in practice, the imposition of these port fees marks a significant change.
Experts stress that it is critical for both parties to pursue conversations at the very least. This is the right approach to prevent any further escalation of tensions. As one commentator remarked, “Threatening high tariffs at every turn is not the right approach to engaging with China.”
