Beijing denies involvement in tariff discussions with the U.S., as declared by President Donald Trump; instead, they affirm their commitment to supporting their own economy.
In a heated global trade scenario, China's top brass has vowed to bolster the economy battered by a fiery trade war with the United States, shying away from President Donald Trump's assertions of negotiations on tariffs. The Chinese Foreign Ministry spokesperson Guo Jiakun declared on Friday that the two superpowers were not actively engaged in formal negotiations concerning the trade war ignited by US tariffs earlier this month.
As tensions persist, US tariffs on Chinese goods now soar to an astronomical 145%, while China's retaliatory taxes on US imports escalate to 125%. China remains steadfast in its stance that the US must first lift all "unilateral" tariffs to resolve the trade impasse.
Meanwhile, China's high-ranking officials, including President Xi Jinping, gathered for a meeting on Friday, focusing on supporting businesses and workers struggling under "external shocks," as reported by the state news agency Xinhua. They also expressed their intent to "work collaboratively with the international community to actively support multilateralism and resist unilateral bullying practices."
According to Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, the meeting's proceedings suggest that the government is prepared to initiate new economic policies in response to the external shock. However, Zhang noted that Beijing appears reluctant to launch a full-scale stimulus at this juncture.
Reuters reported that China is considering exemptions for select US imports, although no official statements have been made on the matter. Businesses have been instructed to identify essential goods requiring tariff relief, although no official list has been disclosed. A leaked document circulating online hints at 131 product categories, including pharmaceuticals and aerospace components, being potential exemptions from tariffs.
The European Union Chamber of Commerce in China confirmed discussing the issue with authorities, noting that numerous firms depend on critical US imports. Similarly, the American Chamber of Commerce shared that some pharmaceutical companies have already received exemptions for specific drugs. French aerospace firm Safran also reported obtaining exemptions for specific aircraft parts. Analysts posit that these moves could alleviate costs for Chinese firms and lessen pressure on US exporters.
Though the Commerce Ministry has yet to comment publicly on the exemptions, inquiries have been redirected to "relevant authorities." Globally, markets remain vigilant for signs of potential de-escalation from both the US and China.
- The ongoing trade war between the United States and China has led to a significant increase in tariffs, with US tariffs on Chinese goods reaching 145% and China's retaliatory taxes on US imports reaching 125%.
- China's Foreign Ministry spokesperson, Guo Jiakun, has confirmed that there are currently no active negotiations between the two superpowers regarding the trade war.
- In response to the external shock, China's high-ranking officials, including President Xi Jinping, are focusing on supporting businesses and workers and have expressed their intent to collaborate with the international community.
- Economist Zhiwei Zhang suggests that the government is prepared to implement new economic policies in response to the trade war, but appears reluctant to launch a full-scale stimulus at this time.
- Reuters has reported that China is considering exemptions for select US imports, including pharmaceuticals and aerospace components, although no official statements have been made on the matter.
- The European Union Chamber of Commerce in China and the American Chamber of Commerce have confirmed discussions with authorities regarding these potential exemptions, as some pharmaceutical companies and aerospace firms have already received exemptions.
- If these exemptions are implemented, analysts believe they could alleviate costs for Chinese firms and lessen pressure on US exporters.
- Markets are closely monitoring both the US and China for signs of potential de-escalation in the trade war and any subsequent impacts on the global economy, education, politics, business, finance, industry, and general-news sectors.
