The U.S.-China trade conflict has reached new heights following rapid tariff escalations from both sides. On April 2, the U.S. introduced 34% tariffs on select Chinese imports, which Beijing countered days later with equivalent measures. President Trump later raised tariffs to 104%, prompting China to impose 84% tariffs on U.S. goods, export controls on 12 U.S. entities, and additions to its 'unreliable entity' list.
A Systematic View of Trade Realities
China's recently published white paper urges a holistic assessment of bilateral trade, emphasizing services trade and enterprise sales over goods deficits. Data shows the U.S. maintained a $26.57-billion services surplus with China in 2023, while American firms earned $490.52 billion through operations in China. 'The U.S. focuses selectively on perceived imbalances,' noted Gao Lingyun of the Chinese Academy of Social Sciences, stressing China's capacity for measured countermeasures.
Domestic Pressures and Strategic Aims
Analysts suggest U.S. actions reflect internal economic challenges, with measures like semiconductor export controls and Boeing's reduced deliveries damaging bilateral ties. Zhang Lianqi of the China Taxation Society criticized the strategy as an attempt to 'force China into a follower role' in advanced industries. Meanwhile, China highlights its WTO compliance, reducing average tariffs from 15.3% in 2001 to 7.3% by 2023.
Diplomacy Over Escalation
Despite mounting pressures, China maintains its commitment to dialogue, adhering to the 2020 Phase One agreement even as the U.S. intensified restrictions. At a recent WTO meeting, Beijing warned that unilateral tariffs risk destabilizing global trade, reaffirming its stance against coercion. 'There are no winners in trade wars,' officials stressed, advocating multilateral solutions for mutual benefit.
