SINGAPORE: China has responded more forcefully and swiftly than before to United States President Donald Trump’s latest tariff salvo, said observers, citing how it has slapped retaliatory tariffs totalling 84 per cent on American goods just hours after Washington’s duties kicked in.
The move, announced by Beijing on Wednesday (Apr 9) evening and taking effect on Apr 10, signals a clear shift in posture, with China no longer appearing fearful of losing access to the US for both exports and imports, analysts said.
In a statement, China’s State Council Tariff Commission condemned the US for escalating the trade dispute, saying the decision to raise tariffs from 34 per cent to 84 per cent was a “grave mistake”.
“This move by the US severely infringes upon China’s legitimate rights and interests and deals a serious blow to the rules-based multilateral trading system,” the commission said.
Its pledge to “fight to the end” in response to cumulative US tariffs of 104 per cent on Chinese goods marks a significant departure from its more cautious stance in the early days of the trade war in 2018, during Trump’s first presidential term, said observers.
China now seems ready to decouple from the US economy, leaning on the years of work it has put into trade diversification, strategic planning and building political resolve, they added.
“Consider Trump 1.0 as a surprise that China was not ready for. Trump 2.0 is a war that China has prepared for eight years,” said Guo Shan, a China-based partner at Hutong Research.
“(China is) definitely much better prepared (now) to retaliate from all fronts, and boost the domestic economy to mitigate external risks.”
Within two days of the US initially announcing 34-per-cent tariffs on Chinese goods last Wednesday (Apr 2), China responded with reciprocal 34-per-cent tariffs on US imports that would take effect on Apr 10.
It also announced rare earth export controls, an expanded “unreliable entity” list with 11 American entities added, and anti-dumping investigations into imported medical CT X-ray tubes originating from the US and India.
In contrast, other zones and countries such as the European Union, Japan and South Korea that were also hit with US tariffs made preparations to negotiate with the US.
https://www.channelnewsasia.com/east-asia/china-response-us-trade-war-20-tariffs-tougher-stance-5054301
