Tensions from China’s ongoing dispute with the United States over trade have continued to escalate this week, according to multiple reports.
The U.S. and China have been engaged in an ongoing trade battle, with both countries vying for an upper hand. As President Joe Biden’s term comes to an end, his administration has recently rolled out new export restrictions on China.
Chinese President Xi Jinping said Tuesday that there will be “no winners” in a U.S.-China trade war, according to Chinese broadcaster CCTV. The Chinese president criticized sanctions the U.S. has placed on Chinese companies in April, calling them an “endless stream of measures to suppress China’s economy, trade, science and technology.”
China has recently escalated trade tensions, with some Chinese manufacturers beginning to limit sales to Europe and the U.S. of components vital to building unmanned aerial vehicles, also known as drones, which play a vital role in Ukraine’s defense against Russia, according to Bloomberg. Some Western officials expect China to implement broad-ranging export restrictions on drone parts in the coming year, Bloomberg reported.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced on Dec. 2 new restrictions designed to curb the People’s Republic of China’s capacity to produce advanced semiconductors that can be used in advanced weapon systems, artificial intelligence and advanced computing. China’s Ministry of Commerce quickly responded to the move on Dec. 3 by announcing a ban on exports of materials which can be used in the production of semiconductors and ammunition.
Despite the president expressing his “full confidence” on Tuesday that the nation would achieve its 2024 growth goal, China’s exports grew at a slower pace than anticipated in November, not meeting economists expectations for a surge in exports ahead of potential new tariffs in 2025, according to The Wall Street Journal. In November, China’s exports increased 6.7% from a year earlier, down from October’s 12.7% growth, The WSJ report noted.
President-elect Donald Trump has proposed sweeping tariffs on imported goods when he returns to the White House in January 2025, including on goods imported from China. The U.S. implemented various tariffs against China under Trump’s first presidential administration. Despite many members of the media warning that a trade war with China would tank the U.S. economy, Trump previously spoke positively of the effects on the steel and auto industries from his placing tariffs on China.
Trump also threatened to impose a 10% tariff on Chinese goods to pressure China into taking additional steps to prevent the trafficking of Chinese-made chemicals used in fentanyl — a synthetic opioid that has caused the deaths of thousands of Americans in recent years — according to Reuters.
If enacted, the president-elect’s proposed tariffs on China could pose major growth risks for China’s economy. Trump’s proposal to sharply raise tariffs could also cause China to accelerate shifting to offshore factories, according to PBS News.
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