Beijing also added 12 US entities to the “export control list” and six US firms to the “unreliable entity list”, state-run news agency, Xinhua, said on Wednesday. This effectively means the 18 companies will not be able to do business with or invest in China.
“China will raise additional tariffs for imported goods originating in the US to 84% from 34% from 12:01am on April 10,” the country’s customs tariff commission of the state council, or cabinet, said on Wednesday.
New Delhi will now also have to be alert to any possible dumping by China as the country looks for other markets. Indeed, on Wednesday, Chinese President Xi Jinping pledged to strengthen the strategic relationships with neighbouring countries by “appropriately” managing differences and enhancing supply chain ties.
The Chinese statement added that the increase was in retaliation against the US move. “The US’s practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system. China urges the US to immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect,” the statement said.
Separately, in his first public speech after Trump’s steep global tariffs, Xi called for building a community with a shared future with neighbouring countries and striving to open new ground for China’s neighbourhood work, state media reported. His number 2, Chinese premier Li Qiang said his country held ample policy tools to “fully offset” any negative external shocks.
In a phone call with European Commission President Ursula Von der Leyen, Li criticised the punitive action on all American trading partners as a typical example of unilateralism, protectionism and economic coercion. He added that China’s firm response is not only to safeguard its own interests but also to defend international trade rules. “Protectionism leads nowhere — openness and cooperation are the right path for all,” Li said.
Earlier in the day, the Chinese government said it was willing to communicate with the US on trade but will not allow it to hurt the rights of its citizens.
Calling the trade imbalance between the two countries inevitable, China, in a new policy paper released on Wednesday, said: “The trade imbalance in goods between China and the US is both an inevitable result of structural issues in the US economy and a consequence of the comparative advantages and international division of labour between the two countries”.
China’s trade surplus with the US widened to $295.4 billion last year from $279.1 billion in 2023, according to US Census data, quoted by Reuters,
“There are no winners in a trade war,” China’s commerce ministry said in a statement accompanying the launch of the report. “China does not want one, but the government will never allow the legitimate rights and interests of the Chinese people to be harmed or taken away.”
Separately, the Chinese foreign ministry spokesperson, Lin Jian, said at a scheduled briefing in Beijing that China will continue to take “resolute and strong measures to safeguard our legitimate rights and interests”.
The Chinese commerce ministry statement on Wednesday was accompanied by the release of a government policy paper by the state council on its position on China-US economic and trade relations.
“China-US economic and trade relations are mutually beneficial and win-win in nature, and cooperation benefits both sides while confrontation harms both,” the policy paper said.
The stable development of China-US economic and trade relations is in the fundamental interest of both nations and peoples, according to the white paper titled “China’s Position on Some Issues Concerning China-US Economic and Trade Relations.”
Quoting data from the UN, the policy paper said China-US two-way trade in goods has grown rapidly. “Statistics from the United Nations (UN) show that in 2024, the volume of trade in goods between China and the US reached US$688.28 billion, which was 275 times the volume of the trade in 1979, when diplomatic relations were established between the two countries”.
Currently, the US is China’s largest goods export destination and the second-largest source of imports. “In 2024, China’s exports to the US and imports from the US accounted for 14.7% and 6.3% of China’s total exports and imports for the year. China is the US’s third-largest export destination and second-largest source of imports. In 2024, US exports to China and imports from China accounted for 7.0% and 13.8% of the US total exports and imports for the year respectively,” the policy paper said.
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