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China reserves firepower for Trump trade battle

China can increase the pressure on American companies in response to US President Donald Trump’s tariff because it hinders some firepower of negotiations between the world’s largest economists in an escalating trade war.

Beijing has already declined, increased fees on American goods by 34 percent and takes a range of other measures, including the export ban on rare Earth and the anti -monopoly in the Chinese branch of the American Dupont company.

Unlike the previous two rounds of revenge, which targeted specific categories of American imports, this time announced an increase in a blanket tariff to enter into force as of April 10, a day after the introduction of “mutual” fees for America.

“The Chinese reaction to the first moderate and patient tariff dispute was, but we discovered that patience was not useful,” said To Shinkwan, Dean of the China Institute for World Trade Studies at the International Business University and Economics in Beijing.

“The situation is bad, it may be worse,” said Kuri Combs, Assistant Director of Consulting Consulting at Beijing China, China. “Beijing has strategically left a strategic place to continue to escalate revenge as the actions of the United States or others threaten its economic interests.”

He said that the latest export controls – seven others have been added to a current list that included Antimony, Pallium and Greenium – were “the most important metal controls so far”, adding that Beijing still has a field to impose more strictly export controls and launch new investigations in companies with China.

Chinese officials told government media on Monday that they were ready to reduce borrowing costs and reduce the requirements of the cash reserves for lenders. They also said that there is a “wide space” to expand the state’s financial deficit and use unusual measures to increase consumption.

The Trump attack comes at a difficult time for Beijing, which is actively flirting with foreign investment to enhance the slow economy and shrinkage pressure in the battle.

China was working to reduce tensions with the new administration at the beginning of the second semester, which made An extraordinary step From sending Vice President Han Cheng to attend Trump’s inauguration in January.

But Chinese restraint ended after last week found one of the largest goals for the “mutual” definitions that Trump revealed. Fresh definitions of American averages on Chinese goods will rise to 60 percent, according to Goldman Sachs analysis.

The scheme explains
The plan that shows the “mutual definitions” that the United States receives other countries displayed in the White House © Alex Wong/Getty Images

China condemned the definitions, which led to sale in global stocks. also to intervene At the last minute to stop the sale of American Tiktok operations by the Chinese social media group by TEDADADE to a consortium from American investors, seeking to re -negotiate the definitions before approving any sale, a person who is familiar with the matter said.

The controlled elements announced on Friday announced the rare medium and heavy Earth elements such as Samarium, Gadulinum and Turbium, which can be decisive for countless technologies including optical fibers and data storage and transmission.

Combs said that the American foreign dependence on this “relatively limited”. Chinese mines represent about 60 percent of the rare land in the world, but the country treats about 90 percent. However, rare light Earth elements, which also have a large blow to a wide range of high -tech products including medical equipment, electric cars and smartphones, waved on the horizon as a possible future goal for Beijing.

A air view shows containers in the port in Nanjing, in the East Jiangsu County
The Ministry of Commerce, which grants export approvals, can tighten examinations for American clients © AFP via Getty Images

Experts say that the Ministry of Commerce, which grants approvals to Chinese companies to export critical components and machines, can tighten examinations for customers in the United States.

One of the Beijing -based Beijing mediator, who sells Chinese goods and manufacturing equipment to the United States, said that in recent months, the organizers have withdrawn their feet in issuing approvals on the elements in the list of goods that require an export license, including critical minerals.

“They do not give you a company no,” said the mediator. “They do not respond to your request. We have seen in the past during periods of geopolitical tension in which these approvals stumble.”

Another street that Beijing can explore is to prevent Chinese companies from making any foreign investment in the United States, which prevents them from participating in Trump’s efforts to revive the industrial industry in America. Chinese companies, such as Carmaker BYD, and Gotion Battery Factory, have invested in the United States, but future investments in manufacturing in the United States require the approval of Beijing.

China has already made it difficult for some engineers and equipment to leave the country, and seeks to protect the dominance of their supply chain in electronics and batteries. Apple Foxconn’s main manufacturing partner has struggled to send Chinese and technical managers to India, where Apple was diversifying its supply chain.

Experts have warned that Beijing is likely to take revenge measures against American companies that have operations in the country, after they have already started anti -pregnancy investigations in Google and NVIDIA technology in recent months.

Its container ship sails approaching a port in Qingdao, in Shandong County, East China
The Chinese organizers were accused of withdrawing their feet in issuing approvals on goods that require export license © AFP via Getty Images

Ben Costrazia, the Hugan Luvils sanctions lawyer, pointed to the increasing risks facing American companies civil litigation to comply with international sanctions under the Penal Code. The law, which was submitted in 2021, was not used until only recently to place sanctions on individuals such as Marco Marco Rubio at the time, who saw Beijing to transfer laws against China’s national interests.

Costrzeoa said that American companies can face civil litigation in China if they withdraw from any decades with their Chinese counterparts due to international sanctions. He said: “There is a risk that foreign companies face civil measures in China under this law. We have not seen China using this law in this way before.”

Tu, Professor Beijing, said that China’s reaction is “very strong.” “There is no need to add measures unless Trump does not increase the definitions or use sanctions. Then the Chinese side will respond. We have already lost hope in the United States.”

Additional reports by Ryan McMuoro in Beijing and Cheng Ling in Hong Kong

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2025-04-07 04:00:00

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