China’s Dramatic Turn Unyielding Tariff Defiance!

According to sources familiar with the situation, the Chinese government has placed civilian officials in Beijing on high alert and initiated a diplomatic campaign to rally support against U.S. President Donald Trump’s tariffs. Communist Party propaganda officials are guiding China’s response, sharing defiant messages on social media featuring former leader Mao Zedong’s words of resolve. In this “wartime” stance, foreign affairs and commerce ministry staff have been instructed to forgo vacations and remain available at all times. China has bolstered departments dealing with the U.S., enlisting experienced officials from previous interactions with the Trump administration. This shift in strategy follows Trump’s recent tariffs announcement and marks a departure from China’s previous efforts to avoid escalating trade tensions. Chinese diplomats have been reaching out to countries affected by Trump’s tariffs, including established allies in Europe, Japan, and South Korea. While China’s Ministry of Foreign Affairs declined to comment, a spokesperson for the Chinese embassy in Washington emphasized China’s willingness to engage in trade discussions while standing firm against unilateral actions that prioritize U.S. interests over global welfare. Trump has criticized China for mishandling the situation and suggested that they are uncertain about negotiation tactics. The impasse stems from U.S. officials’ concerns about China’s trade surplus and alleged unfair trade practices. Trump’s sudden imposition of tariffs has sparked global reactions, with China responding in kind and tensions rising between the two nations.

President Xi Jinping took a bold step by delivering a patriotic message raising doubts about American voters’ resilience compared to the Chinese population. The G20 leaders summit in Osaka is shown in the file photo.

The suspension of the “Liberation Day” tariffs has been extended to all countries except China for a period of 90 days. Trade between China and the U.S. has mostly come to a halt, with Beijing tightening restrictions on services trade, cautioning its citizens against traveling to the U.S., and imposing limits on the import of American movies.

The initial interactions between Trump and Xi were cordial, with Trump inviting Xi to his inauguration, which was attended by Chinese Vice President Han Zheng. However, relations quickly soured.

During the first Trump administration, Beijing maintained several high-level communication channels, including discussions between then-ambassador Cui Tiankai and Jared Kushner, Trump’s son-in-law. Currently, there seems to be a lack of equivalent communication channels, leaving China uncertain about who represents Trump in their relationship.

In response to questions from Reuters, a Trump administration official stated that the U.S. aims to continue working-level contact with China but will not participate in dialogues that do not serve American interests.

Efforts by Chinese officials, such as Ambassador Xie Feng and Foreign Minister Wang Yi, to engage with key U.S. figures like Elon Musk and Secretary of State Marco Rubio have faced challenges, with meetings either being unsuccessful or not arranged. The White House prefers China to send a senior trade official instead of Wang to discuss commerce matters.

Both Trump and Xi have expressed willingness to meet, with Trump considering Xi a friend. However, no concrete details of a potential deal have been disclosed.

Despite repeated inquiries, Chinese diplomats have indicated that Xi has not requested a phone call with Trump. International relations expert Zhao Minghao from Fudan University in Shanghai commented that such outreach strategies have not been effective.

“In terms of the Chinese policymaking system, typically there is consensus and collaboration at the working level before arranging a summit,” he explained. Lynn Song, Chief Economist for Greater China at ING Bank, noted that recent treatment of negotiating countries has not encouraged China to engage in talks. While lower-level officials from both sides are having discussions, several working groups established by the Joe Biden administration to address commercial disputes, treasury matters, and military issues have been put on hold.

Reflecting on past experiences during the Sino-American trade war, China has developed a retaliatory strategy involving tariffs, restrictions on U.S. companies, and limits on rare earth exports. This response was meticulously planned by Chinese officials who studied Trump’s policies and recommended escalating countermeasures. President Xi chose to implement broad tariffs swiftly in response to impending U.S. duties, causing a sharp drop in U.S. equities.

Some Chinese influencers have suggested alternative approaches to the trade conflict, advocating for targeted actions like suspending fentanyl cooperation and imposing further restrictions on agricultural imports and movies. China’s finance ministry announced a halt in matching future U.S. tariff increases, criticizing Washington’s tariff strategy as a ‘joke’.

Amidst the trade tensions, China has called back heads of overseas missions for a special meeting and communicated with government officials of other pressured countries. The messaging emphasized multipolarity and unity against unfair policies, while also addressing concerns held by non-U.S. governments about Chinese practices in high-tech industries. Despite efforts to rally G20 support for the multilateral trading system, challenges surrounding overcapacity, subsidies, and competition continue to persist.”

Due to its comparative advantages and benefits, China is heavily focused on the domestic response to tariffs. Social media users have been widely reposting an editorial from the official People’s Daily, warning against panic. Recently, China has been urging households to increase their spending and has significantly shifted its focus towards domestic consumption, aiming to transition the engine of growth from exports to consumers. This shift comes at a time when the economy is facing challenges from a crisis in real estate development.

Zhao from Fudan University noted that the real battleground lies in the domestic arena rather than in bilateral negotiations. Chinese officials also shared a clip on Musk’s X platform showing Chairman Mao delivering a speech in 1953 during the Korean War, the last time the U.S. and China were involved in direct military conflict. In the clip, Mao, who lost his oldest son in the war, emphasizes that peace depends on the Americans, expressing determination to fight until complete triumph.

(Reporting by Beijing, Washington, Berlin, and Hong Kong newsrooms; Editing by Antoni Slodkowski, Kevin Krolicki, and Katerina Ang)

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