Beijing sends yet another signal that it won’t back down in the trade war sparked by the Trump administration. Chinese state media writes that the US is not a victim and needs to stop whining.
The upward spiral of last week’s trade tariffs seems to have halted, but the conflict between the two largest economies shows no signs of slowing down, reports The Guardian.
The China Daily, the English-language mouthpiece of the Communist Party, wrote that the United States has been "living beyond their means for decades" and must "stop playing the victim" after benefiting greatly from globalization.
In an editorial published on Tuesday by the cited newspaper, it is stated that Donald Trump's frequent claims of the "looting" of the United States "deceive the American people."
"The US is not deceived by anyone. The problem is that the US has been living beyond their means for decades. They consume more than they produce. They have outsourced their production and borrowed money to have a higher standard of living than they are entitled to, based on their productivity. Instead of being 'deceived,' the US has taken a free ride on the train of globalization," writes an accusatory tone China Daily.
"The US should stop complaining that it is a victim of global trade and put an end to its capricious and destructive behavior," the editorial continues.
China does not back down
China has refused to capitulate to Trump's demands to come to the negotiating table and renegotiate the terms of trade relations with Washington.
On Wednesday, Beijing announced the replacement of its international trade negotiator. Li Chenggang will take on this role and the position of Deputy Minister of Commerce, previously held by veteran trade official Wang Shouwen. In this capacity, Li will lead discussions with the US to resolve, in one way or another, the trade war.
No reason was given for this change, but the decision came amid a reshuffle in the Chinese government, as noted by the British daily.
In a statement made on Tuesday by White House spokesperson Karoline Leavitt, Trump announced that "the ball is in China's court."
"China needs to make a deal with us. We don't have to make a deal with them," the American president said in the statement. "There is no difference between China and any other country, except that they are much larger," Trump added.
Analysts and officials expect the trade war to have a significant impact on both economies.
China is still striving to recover from the pandemic, facing low consumer spending and high youth unemployment. However, on Wednesday, Beijing announced economic data above expectations, largely driven by exporters rushing to get products into the US before tariffs take effect.
China's National Bureau of Statistics stated that the economy grew by 5.4% in the first quarter, surpassing analysts' forecasts. Sheng Laiyun, a senior official at the statistical bureau, warned, however, that American tariffs will exert certain pressures on the country's foreign trade and economy.
Meanwhile, Chinese leader Xi Jinping embarked on a tour in Asia. Although planned before the tariff war, the trip aimed to boost Beijing's public and private efforts to strengthen trade relations with other countries.
How Beijing Strikes Back
While tariff increases seem to have halted at 145% for Chinese imports in the US and 125% for American imports in China, the two governments are finding other ways to raise the stakes.
China has ordered its airlines to halt purchases of aircraft equipment and parts from American companies, including Boeing. It also appears to be considering ways to support airlines leasing Boeing planes and facing higher costs.
Approximately 10 Boeing 737 Max planes are ready to join Chinese airlines, and if delivery documents and payments for some of them were completed before the Chinese "reciprocal" tariffs take effect, the planes could enter the country, sources cited by Bloomberg said.
On Wednesday, the Hong Kong postal service announced that it will stop accepting parcel shipments to the US. This means that when sending items to the US, senders from Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the unreasonable and aggressive acts of the US, as stated in a statement quoted by Hong Kong Post. For now, postal shipments containing only documents, without goods, would not be affected.
Hong Kong is subject to the same tariffs as mainland China, although it has not set tariffs as reprisals.
China Plays Tough with Rare Earths
Meanwhile, Trump has announced that additional tariffs on pharmaceuticals and semiconductors are under consideration – which would affect many of the US's trading partners – and has ordered an investigation that could lead to the imposition of customs duties on critical minerals, rare earth metals, and associated products such as smartphones.
China dominates global supply chains for rare earth metals and has imposed export restrictions on several rare earth elements since the trade war with the US began.
T.D.