Trump launched on Wednesday a trade war against the rest of the world, imposing a minimum rate of 10% on all imports. In the case of China, the rates are 34%
US President Donald Trump explained on Sunday that the decision to impose customs global rates annulled an initial agreement with China on Tiktok application operations in the United States.
“We had a deal with Tiktok, not exactly an agreement, but quite close, and then China changed it because of the rates,” Trump told reporters aboard Air Force One.
“If I had slightly reduced the fees, they would have approved the agreement by 15 minutes, which shows the power of fees,” he added.
Trump launched on Wednesday a trade war against the rest of the world, imposing a minimum rate of 10% on all imports. In the case of China, the rates are 34%. Beijing retaliated with rates at the same value on American products.
A law passed during the term of Joe Biden (2021-2025) obliges the Chinese company bytedance, owner of Tiktok, to disassociate the social network in the US market so that the platform can operate in the country.
Due to the absence of an agreement, the application ceased to work for a few hours in the United States, until Trump, on its first day in the White House, signed an executive order to grant a 75 -day extension, which expired this Saturday and has just been extended.
Trump said he is willing to grant China a relief in the fees, as long as Beijing takes this pact, which has the right to veto.
China prepared to crash commercial war with the United States
The Chinese Communist Party’s official newspaper (CCP) admitted that the rates imposed by Washington will impact the Chinese economy, but pointed out that the leadership in Beijing was already preparing for this moment.
“Although international markets generally consider that US tariff abuse exceeded expectations, the party’s central committee [Comunista] It had already foreseen this new round of economic and commercial restraint and repression against China, fully estimated its potential impact and prepared response plans with sufficient anticipation time and reserves, ”said the People’s Diary.
Recognizing that the application of additional customs of 34% on imports from China, in addition to the 20% rates previously imposed, will result in a “reduction in bilateral trade with the US” and a “short -term negative impact on exports”, the newspaper recalled that “many US products have high dependence on China”.
“The US depend on China not only for many consumer goods, but also for investment and intermediate products, with a dependence of more than 50% in various categories, making it difficult to find alternatives in the international international market,” reads in the editorial.
The percentage of exports from China to the United States, compared to the total of its external sales, fell from 19.2%in 2018 to 14.7%in 2024. Part of this fall is due to ‘triangular trade’, in which products are exported almost completed from China to other countries, including Vietname, Thailand or Cambodia, where a component or finishing is added to change the change Place of manufacture, aiming to circumvent the rates. The newspaper does not refer to this phenomenon.
The People’s Diary recalled that, in recent years, “despite internal and external pressures,” Beijing “has been persisted in doing difficult but correct things,” including release the real estate sector and reducing the indebtedness of local administrations and small and medium and medium financial institutions.
“These three major risks have been effectively controlled and contained and are decreasing,” he said.
Pointing out the “large dimension” of the Chinese economy, the newspaper recalled that China has monetary policy instruments, such as reducing mandatory reserve ratio and interest rates, to stimulate domestic consumption with “extraordinary strength”, which would allow the Asian to reduce its dependence on exports.
“The domestic market has a wide margin of maneuver,” said the Chinese Communist Party’s official newspaper. He also stressed the country’s ability to transform the adverse effect of US measurements into an “impulse” to accelerate economic transformation and “industrial innovation.”
“Strangular, repressing and restricting only forces China to accelerate fundamental technological advances in key areas,” he said.
Beijing launched several contracted on Friday to the rates announced by US President Donald Trump.
Beijing measures include 34% rates on US products, sanctions against US companies, restrictions on exporting certain rare land, or opening anti-monopoly and anti-dumping investigations against US companies and products.
“Given the extreme and extreme pressure of the United States, we did not closed the door to negotiations,” said the People’s Diary. “But we also do not feed hopes, having made several preparations to respond to impacts,” he said.
