China has urged the United States to “stop threatening and blackmailing” in the ongoing trade war. This statement follows remarks from President Trump, who said it is up to Beijing to end the dispute. Trump has imposed high tariffs on Chinese goods, reaching up to 145 percent. In response, China has retaliated with tariffs of 125 percent on U.S. products, further escalating tensions between the two nations.
Chinese Foreign Ministry spokesman Lin Jian emphasized that there are no winners in a trade war. He stated that if the U.S. wants to resolve issues, it should engage in talks based on equality and mutual benefit. Meanwhile, economists warn that these prolonged trade tensions could potentially lead to a global recession, adding urgency to negotiations. The U.S. has shifted the focus, stating that “the ball is in China’s court” to make the first move.
This year, Trump has introduced additional tariffs, heavily impacting trade with China. Initially, he imposed 20 percent tariffs for China’s role in the fentanyl supply chain. New exemptions for tech products like smartphones have given some relief, but the overall situation remains tense. Chip stocks in Asia have also declined after news that Nvidia expects significant losses due to new licensing requirements related to China.
In a surprising development, China appointed a new trade negotiator, Li Chenggang, to lead discussions with the U.S. He replaces Wang Shouwen, a veteran negotiator. Analysts suggest this change indicates a shift in strategy as tensions escalate. Li’s background includes work at the WTO, making him well-suited for this role. China’s leadership hopes this new approach will help break the deadlock in negotiations with the U.S.