Chinese Vice President Han Zheng warned that neither side gains anything from tariff or trade wars, giving a thinly veiled rebuke to US President Donald Trump as tensions between Washington and Beijing continue. Addressing the World Peace Forum in Beijing, Han stressed that a multilateral trading system was crucial to maintaining stability in global supply chains.
His words precede by mere days the 9 July deadline Trump has given nations to be hit with new US tariffs to settle trade deals. The Chinese Ministry of Commerce also expressed hope that Washington would keep the progress made so far and the stability of economic ties, which suffered a blow in the early part of this year when Trump unilaterally applied broad import tariffs on Chinese products.
“Hoping that the US will see the common interests of robust China-US trade relations,” the ministry said, calling on Washington not to seek agreements with third-party countries that might undermine Beijing’s interests.
Revenge for the Trump tariffs saw China stop exports of essential minerals and rare earth magnets. Although a May Geneva round of negotiations resulted in Beijing committing to remove curbs, the US alleged momentum lagged behind expectations. Yet, a breakthrough was reached in June in London when the two countries agreed on a framework to proceed.
China started approving export license requests for essential materials, and in return, the US relaxed multiple restrictions, including chip design software, ethane, and exports of jet engines. The US Commerce Secretary Howard Lutnick assured that after China resumed rare earth exports, the US would lift countermeasures.
Thanks to the cessation of hostilities in January, China escaped increased tariffs as the 90-day grace period ends. However, analysts think Beijing may still be hurt indirectly, particularly as Washington steps up its regulation of Chinese goods channeled through third parties such as Vietnam and the UK.