Fri, 11 Apr 2025

Fri, 11 Apr 2025 Why Beijing is not backing down on tariffs

Amid a trade war with the US, our China correspondent explains why Beijing doesn't need to change tactics.
China has a strong position to resist US tariffs and doesn't feel pressured to back down. According to analysts, this is due to China's large economy and ability to absorb losses from trade wars. The Communist Party would rather not engage in a trade war with the US, but it feels it can withstand the impact of tariffs on its exports. In fact, Beijing's leaders have been telling their people that they are well-equipped to resist US attacks. China has been responding to the US tariff increases by imposing its own tariffs on US goods, and has even increased these tariffs in recent days. However, analysts say that this tit-for-tat trade war is becoming less effective as a tool for influencing trade policy. The two countries' economies are so large and complex that the impact of tariffs is being felt across multiple industries. To further emphasize its stance, China's leader Xi Jinping met with Spanish Prime Minister Pedro Sanchez in Beijing last week, where they agreed to "jointly resist the unilateral bullying practices" of the Trump administration. Sanchez also stated that trade tensions between the US and China should not hinder cooperation between China and Europe. China has been taking steps to strengthen its relationships with other countries, including South Africa, Saudi Arabia, India, Malaysia, Vietnam, and Cambodia. In addition, it is reportedly in talks with the EU about potentially removing tariffs on Chinese cars and replacing them with a minimum price, which would help rein in dumping practices. The overall message from Beijing seems clear: China will not back down to US pressure, and is instead choosing to focus on strengthening its relationships with other countries.
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