China’s state media has criticized the US for its complaints about being victimized, suggesting that the US has been “enjoying a free ride” from globalization, as the trade conflict between the two nations escalates.
Although recent reciprocal tariff increases seem to have halted, the friction between the two largest economies remains unresolved.
On Tuesday evening, the China Daily, the English-language outlet of the Chinese Communist Party (CCP), published an editorial that dismissed Donald Trump’s assertions of the US being “ripped off” as misleading rhetoric aimed at the American public.
“No one is ripping off the US,” the editorial asserted. “The issue lies in the fact that the US has been living beyond its means for years, consuming more than it can produce. It has outsourced its manufacturing and borrowed extensively to maintain a living standard that exceeds what its productivity justifies. Instead of feeling ‘cheated’, the US has simply taken advantage of globalization.”
The article further urged, “The US should cease portraying itself as a victim in global trade and halt its erratic and harmful actions.”
The CCP has stood firm against Trump’s requests for renegotiating trade agreements.
In a statement from White House spokesperson Karoline Leavitt, Trump remarked on Tuesday that “the ball is in China’s court.”
“China needs to reach a deal with us. We’re not obligated to negotiate with them,” the statement read. “China is not different from any other country, other than its size.”
Experts and officials anticipate the trade conflict will have a profound effect on both economies. China was already facing challenges in bouncing back from the pandemic, struggling with low consumer spending and elevated youth unemployment rates.
On Wednesday, Beijing revealed unexpectedly positive economic statistics, significantly boosted by exporters hastily shipping products to the US ahead of the tariff implementation.
According to the national bureau of statistics, China’s economy expanded by 5.4% in the first quarter, surpassing analyst expectations. However, Sheng Laiyun, a senior official at the bureau, cautioned that US tariffs would exert pressure on the nation’s foreign trade and economy.
Now, as the trade war continues, China’s leader Xi Jinping is visiting multiple Asian countries, a journey that, though scheduled prior to the tariff conflict, has bolstered Beijing’s initiatives to enhance trade relations.
Xi stated in an editorial released before his visit to Malaysia on Wednesday, “China is ready to collaborate with Malaysia and other ASEAN nations, following the historical trends of peace and development, to confront the currents of geopolitics and tribalism, oppose unilateralism and protectionism, and forge a high-level strategic alliance that fosters a closely knit community of shared destiny.”
While the tariff increases have temporarily stabilized at 145% on Chinese products entering the US and 125% on US goods heading to China, both nations are identifying alternative measures to intensify the trade tension.
Reports have emerged that China has instructed its airlines to suspend acquisitions of aircraft parts and equipment from American businesses, including Boeing. Additionally, there are indications that the country is exploring support mechanisms for airlines that lease Boeing jets and face increased expenses.
Sources informed Bloomberg that around 10 Boeing 737 Max aircraft are being arranged for Chinese airlines, and if the delivery paperwork and payments were finalized before the imposition of Chinese “reciprocal” tariffs, the planes might still enter the country.
On Wednesday, the Hong Kong postal service announced it would cease accepting packages destined for the US. Residents were cautioned to expect “exorbitant and unreasonable fees” when sending items to the US, a result of “unreasonable and bullying acts” by the US, according to a statement from Hong Kong Post. However, other mail containing only documents without goods will remain unaffected.
Although Hong Kong is subject to the same tariffs as mainland China, it has yet to impose any retaliatory tariffs of its own.
In parallel, Trump has initiated a review regarding further tariffs on pharmaceuticals and semiconductors, which could affect many of the US’s trading partners, and has ordered a probe that may result in tariffs on essential minerals, rare-earth elements, and associated products like smartphones.
China maintains a dominant role in global supply chains for rare metals and has enforced export controls on various rare earth elements since the onset of the trade disputes with the US.
Additional research by Jason Tzu Kuan Lu
