Chinese Commerce Minister Wang Wentao is set to hold a call with his US counterpart in the near future to discuss trade and economic ties, according to China’s state-run Xinhua news agency. The conversation will cover a range of topics, including the recent US restrictions on electric vehicles (EVs), which have further strained the already tense trade relationship between the two countries.
Tensions Over New Tariffs On Chinese Goods
The upcoming talks come amid a backdrop of heightened tensions, following the US’s imposition of new tariffs on $18 billion worth of Chinese goods, including EVs, EV batteries, and solar panels. These tariffs, which took effect in late September, have significantly impacted lithium-ion batteries by value. The measures were introduced after a review by the Office of the US Trade Representative, continuing the trade policies initiated under former President Donald Trump in 2018.
While the Biden administration claims these tariffs are necessary to protect strategic domestic industries from China’s state-driven overproduction, Beijing has expressed strong disapproval. Chinese officials conveyed their “grave concerns” about these measures during a two-day meeting with a US delegation in Beijing last month, highlighting additional US tariffs, investment restrictions, and sanctions related to Russia as key points of contention.
China’s Response And Accusations Of Economic Containment
Beijing has repeatedly accused the United States of attempting to stifle its economic growth and suppress its technological advancements. According to Chinese officials, such measures are part of a broader strategy by Washington to contain China’s rise. Despite these accusations, China has maintained a willingness to engage in dialogue, recognising the potential for further tensions should Trump return to office.
The former US President has suggested that, if re-elected, he would consider imposing even higher tariffs—up to 60%—on Chinese goods. This has raised concerns in Beijing, prompting officials to push for more negotiations in an effort to mitigate the impact of future sanctions.
Broader Impact On China-EU Relations
China’s trade relations with the European Union have also been strained recently. The EU has accused Beijing of flooding the European market with Chinese-made EVs, which it claims are supported by unfair industrial policies and state subsidies. In response, the EU is expected to vote on introducing definitive levies on Chinese-made EVs later this month.
Ongoing Uncertainty In China-US Relations
China’s ambassador to the US, Xie Feng, acknowledged the complexity of the bilateral relationship in a recent speech. “The No.1 and overarching question is: are we rivals or partners?” Xie asked, adding that “China’s success does not have to mean the failure of the United States.” His comments reflect China’s ongoing efforts to seek a more stable and cooperative relationship with the US, despite ongoing economic and geopolitical challenges.
The outcome of the upcoming call between the Chinese and US commerce ministers will be closely watched as both countries grapple with issues of trade, technology, and broader geopolitical dynamics.
(With Inputs from Reuters)
