China Reaffirms Stance Against Tariffs, Claims Balanced Trade With U.S.

BANGKOK — China has reiterated its firm opposition to tariffs imposed by Donald Trump, stating in a comprehensive policy document released Wednesday that trade between the two nations is balanced, despite a 104% tax now in effect on Chinese exports to the U.S.

The Chinese government did not indicate whether it would engage in negotiations with the White House, a path many other countries have pursued.

The Ministry of Commerce stated in the white paper’s introduction that “If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end.”

Last Friday, China announced a 34% tariff on all goods imported from the U.S., export controls on rare earth minerals, and other measures in response to Trump’s “Liberation Day” tariffs. Subsequently, Trump increased tariffs on Chinese goods by an additional 50%, declaring an end to negotiations.

To date, China has shown little inclination towards negotiation. According to Ministry of Foreign Affairs spokesman Lin Jian on Wednesday, “If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit.”

The paper claims that the U.S. has not upheld its commitments from the phase 1 trade agreement established during Trump’s initial term. It cites a U.S. law requiring TikTok to be sold by its Chinese parent company as a violation of the promise that neither country would “pressure the other party to transfer technology to its own individuals.”

Trump signed an order last week to allow TikTok to continue operating for another 75 days, following a pause in a potential deal to sell the app to American owners. ByteDance representatives reportedly contacted the White House, stating that China would withhold approval of the deal until trade and tariff negotiations could take place.

The document further argues that when considering trade in services and the domestic Chinese branches of U.S. companies, the economic exchange between the two countries is “roughly in balance.”

It notes that China had a $26.57 billion deficit in trade in services with the U.S. in 2023, encompassing sectors such as insurance, banking, and accounting. Trump’s tariffs aimed to reduce trade deficits with foreign countries, but these were calculated solely on trade in physical goods.

The Chinese commerce ministry stated, “History and facts have proven that the United States’ increase in tariffs will not solve its own problems. Instead, it will trigger sharp fluctuations in financial markets, push up U.S. inflation pressure, weaken the U.S. industrial base and increase the risk of a U.S. economic recession, which will ultimately only backfire on itself.”

—AP researcher Yu Bing and producer Liu Zheng contributed to this report from Beijing.