Despite a significant 21% year-on-year decline in exports to the U.S. due to new tariffs, China’s overall exports surged 8.1% in April, exceeding expectations. This increase was driven by a substantial 20.8% rise in shipments to Southeast Asia, particularly Indonesia and Thailand. However, the overall export growth may partially reflect pre-tariff contracts and transshipment, with future weakening anticipated. Imports from the U.S. also fell sharply, by almost 14%.
Read More
Despite significant US tariffs on Chinese goods, including toys, Chinese businesses in Yiwu, a major export hub, report a decreased reliance on the American market. Exporters are actively diversifying, finding new customers in South America and the Middle East, confident in their ability to find alternative markets. This shift reflects a broader defiance towards US trade policies, evidenced by both business practices and state media commentary. While US businesses face potential supply chain disruptions and price increases, China’s economic growth, although impacted by the trade war, is expected to continue.
Read More
China’s April manufacturing PMI plummeted to 49.0, its lowest point since May 2023, signaling a contraction driven by escalating trade tensions with the U.S. Sub-indexes for production and new orders also fell sharply, reflecting weakened demand. This downturn follows March’s unexpectedly strong growth, attributed to preemptive exports. The government acknowledges the impact of external factors and plans to coordinate domestic policies with trade dispute responses.
Read More
Facing persistent economic challenges stemming from a housing crisis, youth unemployment, and the impact of US tariffs, China’s politburo announced a multi-pronged strategy. This plan includes bolstering domestic demand through fiscal stimulus, increasing social welfare benefits, and promoting service industry development. Simultaneously, reports suggest China may be considering tariff exemptions on certain US products, including semiconductors, potentially signaling a de-escalation of trade tensions, although both governments offer conflicting accounts of ongoing negotiations. This proactive approach reflects Beijing’s strategy to withstand external economic pressures while prioritizing domestic stability.
Read More
Despite escalating trade tensions with the U.S., China’s first-quarter 2025 GDP grew by 5.4 percent, exceeding analyst predictions of 5.1 percent. This growth, attributed to the resilience of the Chinese economy, occurred before the latest round of increased U.S. tariffs. However, government officials acknowledge that the high U.S. tariffs, violating WTO regulations, will create economic pressure. While China has diversified trade partnerships and employed strategies to mitigate tariff impacts, experts warn of ongoing challenges such as weak domestic consumption.
Read More
Despite President Trump’s new tariffs and threats of further increases, particularly on electronics and pharmaceuticals, global stock markets rose, indicating a possible retreat from the most severe measures. China downplayed the impact on its exports, citing diversification efforts and a strong domestic market as mitigating factors. While the US administration initially offered exemptions for some electronics, these were later retracted, leaving companies uncertain about future trade policy. The trade war continues, impacting consumers through price increases as seen with Sony’s PlayStation 5, and prompting international condemnation of protectionist trade practices.
Read More
Victor Gao, a former translator for Deng Xiaoping, refutes the notion that the US has successfully isolated China, arguing that the US’s trade war has harmed its own citizens and disregarded global sovereignty. He asserts China’s readiness to withstand this pressure, highlighting China’s long history and vast market, dismissing the significance of losing the US market. Gao emphasizes ongoing dialogue between China and the EU, suggesting potential alternative trade partnerships. He concludes that US-China relations will not improve without a shift in the US’s attitude toward China and a cessation of its antagonistic approach.
Read More
Amidst escalating trade tensions, Chinese President Xi Jinping declared China’s unwavering stance against what it terms “unilateral bullying” by the US, rejecting accusations of starting a trade war. China raised tariffs on US goods to 125%, but asserted this was a response to US actions and not a sign of further escalation. Xi engaged in diplomatic efforts with Spain and other nations, aiming to solidify alliances and present China as a reliable trading partner amidst global economic uncertainty. While China maintains it will not initiate further tariff increases, it has several alternative countermeasures available.
Read More
Treasury Secretary Scott Bessent asserts the U.S. holds a strategic advantage in its trade dispute with China, citing a significantly smaller volume of U.S. exports to China compared to Chinese exports to the U.S. The U.S. is implementing reciprocal tariffs to encourage negotiations and reshore jobs, with several countries already expressing interest in talks. While China has vowed to retaliate, the U.S. aims to address both tariffs and non-tariff barriers to create a fairer trade environment, ultimately generating revenue and jobs domestically. The administration hopes tariffs will act as a temporary revenue source, eventually diminishing as domestic manufacturing increases.
Read More
Facing escalating US tariffs, China has responded with retaliatory measures, vowing to “fight to the end” and portraying the situation as an opportunity to strengthen its economy. Beijing emphasizes its preparedness to withstand a trade war, highlighting its domestic strengths and projecting an image of confident opposition to what it terms US “unilateral bullying.” The Chinese government is actively promoting domestic consumption and investment to mitigate the impact of tariffs, while simultaneously positioning itself as a stable alternative economic partner for global trade. This defiance, however, risks further escalation and complicates the prospects for de-escalation between the two superpowers.
Read More
John Q. Hosedrinker