By The US-China trade conflict entered a dangerous new phase today as Beijing announced it will refuse any negotiations until Washington removes all unilateral tariffs. This hardline stance, articulated by Commerce Minister Wang Wentao, represents a significant escalation in the economic cold war between the superpowers.
The preconditions set by China include:
- Immediate removal of Section 301 tariffs on $370 billion of Chinese goods
- Lifting of all high-tech export controls, especially on semiconductors
- Termination of investment restrictions on Chinese companies
Historical Context:
These demands come exactly seven years after the first Trump-era tariffs were imposed in 2018. While the Biden administration had partially rolled back some duties in 2023, about 60% remain in place, particularly on strategic industries like EVs, solar panels, and rare earth minerals.
Sector Impacts:
- Automotive: Tesla’s Shanghai factory faces 30% export tariffs to US
- Tech: Apple may need to relocate another 15% of iPhone production
- Agriculture: US soybean exports to China down 28% year-over-year
Expert Analysis:
“China is weaponizing its market access,” says former USTR negotiator James Green. “They’re betting US midterm election pressures will force concessions.”