Analysts hail Beijing’s defense of rules-based trade, urge negotiations over escalations

China raised additional tariffs on all goods imported from the United States to 84 percent, starting at 12:01 am on April 10, and added 18 US entities to its export control and unreliable entity lists to counter unilateral US tariff hikes.

United States President Donald Trump then further escalated the additional tariff rate for imports from China to 125 percent.

Analysts said the countermeasures sent a clear message that China, the world’s second-largest economy, is prepared to stand firm in defense of its legitimate interests and the rules-based multilateral trading system.

Late on April 9, the Ministry of Culture and Tourism and the Ministry of Education issued separate risk alerts to tourists and students planning to go to the US.

Beijing’s latest moves followed Washington’s decision to increase its so-called reciprocal tariffs on Chinese goods to 84 percent, bringing the total additional tariffs imposed by the current Trump administration to 104 percent.

However, Trump said on April 9 that he was pausing his new tariffs above the 10 percent base for 90 days except on China, which he announced he would raise to 125 percent.

A statement from the Customs Tariff Commission of the State Council, China’s Cabinet, said on April 9 that the US decision to increase tariffs on Chinese goods is “a mistake upon a mistake”.

US tariff hikes, which severely infringe on China’s legitimate rights and interests, damage the rules-based multilateral trading system, and destabilize the global economic order, are “a clear example of unilateralism, protectionism, and economic coercion”, the commission said.

On April 10, the Ministry of Commerce announced that it has included 12 more US entities, including American Photonics and BRINC Drones, on China’s export control list. This effectively bans the export of dual-use items — goods that can be used for both civilian and military purposes — from China to these entities.

The ministry said it has also added six more US companies, including Shield AI and Cyberlux Corp, to China’s unreliable entity list. It means these companies are banned from trading or investing in the country.

China has also filed a complaint with the World Trade Organization over the latest US tariff hikes, the ministry added.

Guo Kai, executive president of CF40 Institute, a research center affiliated with the China Finance 40 Forum think tank, said Beijing’s strong countermeasures have proved that Washington’s expectations of China succumbing to the pressure of US tariffs were miscalculated.

It may take some time, but Beijing’s firm stand to “fight until the end” will make Washington realize that it underestimated China’s endurance to tariffs, Guo said, underscoring that the realization would eventually bring the US back to the negotiation table.

Lin Meng, director of the Modern Supply Chain Research Institute at the Chinese Academy of International Trade and Economic Cooperation in Beijing, noted that China’s countermeasures reflect its firm opposition to US hegemony and underscore its commitment to upholding a fair, rules-based global trading system.

“This offers other countries a reference for defending their interests through multilateralism and reinforces the importance of a rules-based global trading system amid rising unilateral pressures,” Lin said.

China’s Ministry of Commerce has called on the US to remove unilateral tariffs as quickly as possible and work with it in the spirit of mutual respect, peaceful coexistence, and win-win cooperation to address respective concerns through dialogue and consultations on an equal footing.

Chinese officials said that should the US further intensify tariffs and restrictive measures against China, Beijing has the “firm will and abundant means” to fight until the end.

Their comments came after the State Council Information Office released a white paper on April 10 titled “China’s Position on Some Issues Concerning China-US Economic and Trade Relations”. It noted that the recent US move to use tariffs as a coercive tool is a grave mistake and further exposes the typical unilateralist and bullying nature of the US government.

Since US President Trump took office in late January, Washington has repeatedly imposed additional tariffs on China, and the tax rate on Chinese imports had reached over 120 percent before Trump raised the “reciprocal rate” further to 125 percent from 50 percent.

Noting that these actions could severely impact China-US economic and trade relations, the white paper emphasized that the key is to respect each other’s core interests and major concerns and find proper solutions through dialogue and consultation.

According to the document, the essence of China-US economic and trade relations is one of mutual benefit and win-win cooperation, despite the inevitable differences and friction that arise between the two countries due to their different stages of development and distinct economic systems.

Trade data from the United Nations shows that the value of US goods exported to China reached $143.55 billion in 2024, up 648.4 percent compared with the $19.18 billion recorded in 2001. This growth in US exports to China has far outpaced the 183.1 percent increase in overall US exports during the same period.

Detailing the white paper, a Commerce Ministry official said, “With firm will and abundant means, China will resolutely take countermeasures and fight until the end if the US insists on further escalating economic and trade-restrictive measures.”

There is no winner in a trade war, and China does not want a trade war, the official emphasized, adding that the Chinese government “will by no means stand idle when the legitimate rights and interests of its people are being hurt and deprived”.

The official said that the US use of tariffs as a weapon to exert maximum pressure and pursue self-interest is a typical act of unilateralism, protectionism, and economic bullying.

Under the guise of pursuing “reciprocity” and “fairness”, the US is engaging in zero-sum games and, in essence, seeking “America First” and “American exceptionalism”, the official said.

The US is exploiting tariffs to subvert the existing international economic and trade order, prioritizing US interests above the global common good, and sacrificing the legitimate interests of countries worldwide to serve its own hegemonic agenda, he added.

Noting that the US is also deliberately severing the well-established global industrial and supply chains and breaking the market-oriented free trade rules, the official said these practices seriously interrupt the economic development of countries around the globe and affect the long-term stable growth of the world economy.

Foreign Ministry spokesman Lin Jian told a daily news conference on April 9 that “if the US disregards the interests of the two countries and the international community and stubbornly persists in the tariff war and trade war, China stands ready to fight to the end”.

Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said, “A trade war, for sure, produces no winner, but the US is destined to suffer greater losses than others.”

On April 8, Goldman Sachs raised the odds of a recession in the US to 45 percent, just a week after it said the odds were at 35 percent, as fears of an impending trade war increased. It also revised its forecast for this year’s GDP growth in the US to 1.3 percent, down from 1.5 percent, and cautioned about the possibility of a bear market.

Navin Girishankar, president of the Economic Security and Technology Department at the Center for Strategic and International Studies, said, “You can’t fight a trade war and then expect to win a tech war.”

Highlighting industries such as semiconductors, artificial intelligence, and clean energy that largely rely on international collaboration, Girishankar said that tariffs would increase costs and reduce efficiency, eroding the US’ ability to compete in such sectors.

Li Haidong, a professor at China Foreign Affairs University’s Institute of International Relations, said the White House is playing the tariff card to advance its domestic political agenda and secure gains in the upcoming midterm elections.

“Given that China is a staunch proponent of globalization, the Trump administration is escalating the ‘tariff war’ in an attempt to overturn the multilateral trading system of the past decades and recast it in a way that preserves US dominance and allows it to continue draining the rest of world,” Li said.

Also on April 9, the Hong Kong Special Administrative Region government expressed strong opposition against further imposition by the White House of the so-called “reciprocal tariffs” and the elimination of the duty-free de minimis treatment for goods from Hong Kong.

Xinhua contributed to this story.

Contact the writers at wangkeju@chinadaily.com.cn