US-China Trade War

Battles lines drawn between the world's two largest economies
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Background and explainers on the trade war between China, led by President Xi Jinping, and the United States, and its President Donald Trump. Having started in July 2018, the prolonged conflict reached a turning point in January 2020 with the signing of the phase one trade deal, but not after it had weighed heavily on the global economy for 18 months due to additional import tariffs levied by both China and the US. The US has accused China of unfair trading practices, including intellectual property theft, forced technology transfer, lack of market access for American companies in China and creating an unlevel playing field through state subsidies of Chinese companies. China, meanwhile, believes the US is trying to restrict its rise as a global economic power.

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News
Diplomacy
A view of the China-Laos Railway in Luang Prabang province in Laos, which a Chinese finance official cited recently as an example of Beijing’s effort to facilitate global supply chains. Photo: Aidan Jones
Diplomacy
De-risk? Decouple? It’s just the West disrupting supply chains, Beijing says
Wang Dongwei, China’s vice-minister of finance, tells a conference in Egypt the US and EU had weaponised the idea of national security.
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Vehicles transporting Chinese components to Kazakhstan for a 50MW wind power project are seen on the Guozigou Bridge in Huocheng County, in the Xinjiang Uyghur Autonomous Region, on April 24, 2020. Kazakhstan is a key part of China’s Belt and Road Initiative. Photo: Xinhua
Opinion
Opinion|Western bias against China’s belt and road is hobbling climate action
As a green tech powerhouse, China can accelerate the Global South’s digital transition and foster a more sustainable model of economic growth. But the West remains obsessed with China’s perceived threat.
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China’s National Development and Reform Commission has pledged to support Yunnan province in southwestern China to “speed up the construction of major international corridors”. Photo: Simon Song
China Economy
China pushes Yunnan gateway in ‘pivot to South and Southeast Asia’
National Development and Reform Commission pledges to support Yunnan with transport, logistics, energy and digital connection with southern neighbours.
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Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink meets Vice-Foreign Minister for Asia Sun Weidong in Washington. The meeting is the latest exchange in a string of bilateral high-level engagements. Photo: X @USAsiaPacific
Diplomacy
China and US diplomats overseeing Asian affairs meet to discuss region
China’s Vice-Foreign Minister for Asia Sun Weidong meets Daniel Kritenbrink, US Assistant Secretary of State, for ‘candid, in-depth and constructive consultation’ on regional issues, including Taiwan and maritime issues.
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US Republican congressman Rob Wittman of Virginia has called for greater efforts to identify Chinese nationals who come to the US and go after dissidents of Beijing’s government. Photo: AP
China
China’s bid to hold sway over US policy poses ‘threat of our lifetime’
State Department report on alleged damage Beijing’s influence operations inflict on America’s reputation overseas is latest cause for Washington alarm.
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US Democratic senator Debbie Stabenow of Michigan chairs the Senate Agriculture Committee that convened Wednesday’s hearing. Photo: Getty Images via AFP
China
Buying US farmland not part of China agriculture plan, panel told
‘No clear evidence’ that foreign land ownership has caused US farmland prices to rise or that domestic food production is compromised, Senate hears.
9
Illustration: Craig Stephens
Opinion
Opinion|Don’t be fooled by narrative that China rebuffed US peace efforts
The US isn’t serious about detente or any form of reconciliation. Instead it has been laying the foundation for a cold war or worse, and fabricating a moral high ground.
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One of the oldest Chinese emporiums in the US, the Pearl River Mart was founded as “friendship store” in 1971, months before Richard Nixon’s China visit. The main store has moved five times and is now in SoHo, a few blocks from Chinatown. Photo: Pearl River Mart / Think!Chinatown
Opinion
Opinion|Despite decoupling talk, Chinese businesses are flourishing in the US
A growing number of Chinese firms and Chinese-run businesses have found the secret sauce to success in the US: keeping low, localising operations – and cutting as many ties as possible to a home office in China.
14
President Xi Jinping, seen here speaking in Zhejiang province on Saturday, has said China’s free-trade zones must strive for innovation and breakthroughs. Photo: Xinhua
China Economy
China’s Xi Jinping appeals to decades-old mantra of reform, eyeing economic jolt
The president addresses some oft-mentioned gripes among the international community, acknowledging that China must do more to open up to the rest of the world.
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Cotton farmer Gong Lunquan checks the growth of cotton in a field near Urumqi in northwestern China’s Xinjiang Uygur autonomous region. Photo: Xinhua
China
American businesses warned on China forced labour as shipment denials surge
First half of 2023 sees US$587 million worth of goods denied entry to the US, more than doubling the figure for the second half of 2022.
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Nike is one of the more than 270 members of the US-China Business Council. Photo: Bloomberg
China
China still key market, US businesses say, but hope dims for improved prospects
US-China tensions create negative ripple effects for American firms, including lost sales and disrupted supply chains, according to annual survey’s results.
10
President Joe Biden listens during a virtual meeting with Chinese President Xi Jinping, at the White House on November 15, 2021. They last met in person last November, on the sidelines of the G20 summit in Bali, Indonesia. Photo: AP
Opinion
Opinion|Does the US really want a Biden-Xi Apec summit?
A Xi-Biden summit at the Apec forum would cap off recent US-China diplomatic efforts. But Chinese doubts about US sincerity remain, so the onus is on Washington to show a more conciliatory stance.
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US President Joe Biden and Ukrainian President Volodymyr Zelensky at the White House. Photo: White House Office / APA Images via Zuma Press Wire / dpa
Diplomacy
US hits Chinese and Russian firms over Moscow military aid
The Commerce Department imposed new trade restrictions on 11 Chinese and 5 Russian companies, accusing some of supplying components to make drones for Russia’s war effort in Ukraine.
17
From the left, French President Emmanuel Macron, Japan’s Prime Minister Fumio Kishida, US President Joe Biden, Germany’s Chancellor Olaf Scholz and Britain’s Prime Minister Rishi Sunak visit the Itsukushima shrine on Miyajima island in Hatsukaichi, Hiroshima, on May 19. Western governments want to reduce their exposure to security risks inherent in economic exchanges with China. But how to get there is a different story. Photo: AP
Opinion
Opinion|Decoupling from China: the only question is how far the West will go
EU leaders may refuse to recognise it, but decoupling from China has already started – the severance of economic ties is a core component of any ‘de-risking’ policy. The ‘de-risking’ debate in Western nations is really about how far to take decoupling before they try to end it.
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Illustration: Craig Stephens
Opinion
Opinion|US is still tied to China’s supply chains, at least for now
Despite US friendshoring and nearshoring efforts, many global supply chains still depend on China indirectly. Until US allies can develop transparent end-to-end supply chain solutions, America will continue to rely on Chinese manufacturing, directly or indirectly.
2
US Senate Majority Leader Charles Schumer, Democrat of New York, is reportedly assembling a bipartisan delegation to visit China in October. Photo: Reuters
Diplomacy
Beijing says it would welcome a visit by US senators next month
Senate majority leader Charles Schumer is reportedly planning a bipartisan delegation, which would be the first congressional trip to mainland China in four years.
15
The currencies of China and the US have become frequent topics of discussion as the two countries continue their economic stand-off. Photo: Reuters
China Economy
Economist says T-bills present risk, but holdings already substantially trimmed
At a summit in Shanghai, an academic has echoed some of his peers by recommending the dumping of US Treasuries – a move that they say would help ensure the safety of China’s overseas assets.
10
The world’s two biggest powers are competing on a range of fronts, from trade and technology to influence in the Indo-Pacific. Photo: Reuters
Diplomacy
US-China ties should be seen as a long-distance race for mutual gain, forum told
Relationship shouldn’t be defined as a rivalry, Chinese expert says.
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The groups will report to US Treasury Secretary Janet Yellen and Chinese vice-premier He Lifeng. Photo: TNS
Diplomacy
China and US set up finance and economic discussion channels
The working groups were set up following talks between US Treasury chief Janet Yellen and Chinese vice-premier He Lifeng.
46
Of all Mexico’s trading partners, China, which accounts for 17.9 per cent of Mexico’s total imports, is expected to be affected most by recent tariff changes. Photo: Xinhua
China Economy
China urged to alter approach as Mexico shifts trade posts, raises tariffs
While too early to know the impact of tariff changes introduced in August, trade lawyer warns Chinese companies to expect more trade-related costs in Mexico.
21
Sales of Chinese electric vehicles are on the rise in Europe. Photo: AFP
Diplomacy
‘Now or never’: the European drive to head off influx of Chinese electric cars
The European Commission is investigating what some EU players say is a flood of subsidised EVs from China.
130
European Commission President Ursula von der Leyen delivers the State of the European Union address to the European Parliament in Strasbourg, France on Wednesday. Photo: Reuters
China
EU to probe ‘flood’ of cheap Chinese electric vehicles, sparking trade war fears
European Commission president Ursula von der Leyen announces investigation into alleged dumping of EVs during annual policy speech amid fears in Europe that Beijing’s industrial policy is undermining ability to compete in innovative sectors.
134
US deputy treasury secretary Wally Adeyemo. Photo: Reuters
Diplomacy
China’s economic headwinds could hit region, US treasury deputy says
Wally Adeyemo said China’s economy faces ‘significant headwinds … a slowing Chinese economy is going to have an impact, but mostly on their neighbours.’
3
China’s TikTok app has an online marketplace called TikTok Shop, an Amazon competitor, and is now live in the US for some users. File photo: Reuters
United States & Canada
‘Yes, it’s genuine’: TikTok’s new Amazon copycat full of cheap Chinese goods
Many TikTok Shop listings mention products being shipped from China, home to parent firm ByteDance, potentially reigniting US regulatory concerns if user data is put in the hands of Chinese sellers.
2
A Kirin 9000s processor, developed by Huawei Technologies chip design arm HiSilicon, is taken from a Mate 60 Pro 5G smartphone in Ottawa, capital of Canada, on September 3, 2023. Photo: Bloomberg
Big Tech
SMIC under the spotlight for ‘breakthrough’ 5G chip in Huawei’s new smartphone
Speculation has ramped up over the role of Semiconductor Manufacturing International Corp, mainland China’s top contract chip maker, in producing an advanced 5G chip for Huawei amid US trade sanctions.
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Illustration: Craig Stephens
Opinion
Opinion|Great power contest? US is whitewashing its aggression towards China
The US-China conflict is a struggle between an aggressor and a resisting party. Casting it as a geopolitical contest suggests both parties share equal responsibility.
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Opinion
Macroscope|De-risking from China? That way lies economic disaster
Amid shifts in geopolitics, supply chains and global trade, companies have been scared into rethinking how they operate and invest. Government officials who are reshaping the world economy without a sound understanding of consequences could well break the system.
Anthony Rowley
21
Opinion|China’s aversion to bad news about its economy is counterproductive
Efforts to defend Beijing’s official narrative have intensified this year, as the country’s post-coronavirus economic recovery slowed amid mounting problems.
Zhou Xin
16
The View|Rise of reckless geopolitics is global economy’s greatest enemy
What some decry as protectionism and mercantilism ruining the global economy is really a rebalancing towards addressing important national issues. The biggest risk is not this broader reorientation – which should be welcomed – but US-China rivalry that threatens to hurt everyone.
Dani Rodrik
1
Macroscope|India’s gain could be China’s loss in the great supply chain reallocation
The pre-pandemic approaches to supply chains were conditioned on the assumption that global links were reliable, predictable and cost-effective. Covid-19, geopolitics and labour market dynamics are driving firms and countries to look to new locations such as India, Mexico and Southeast Asia for diversification.
Ecaterina Bigos
18
Inside Out|Hong Kong needs patience and a brave face for slog of economic recovery
Data suggests Hong Kong is starting to recover, with tourism, service exports and population numbers coming back up. But challenges remain, including eagerness of many in the West to write Hong Kong off.
David Dodwell
16
Inside Out|A fairer, China-led reality awaits US commerce chief Raimondo
Developing countries want a stronger voice in international decision-making and in setting the rules and practices of the future multilateral architecture, and are taking practical steps to achieve that.
David Dodwell
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Macroscope|How China’s M&A deals abroad are shifting amid headwinds
Chinese deals have dropped to a 17-year low in the US as M&A shift towards the rest of Asia, Middle East and elsewhere. While deals have dipped overall, there are reasons to be optimistic, such as in the life sciences.
Merlin Piscitelli
The View|How businesses still upbeat on Asia can adapt to new norm of uncertainty
China’s growth, global economic conditions, geopolitical tensions and energy transition ambiguity are all risks. Businesses can prepare by boosting in-house intelligence and diversity in recruitment and operations.
Colleen K. Howe
Macroscope|Call it ‘decoupling’ or ‘de-risking’, damage of US’ China policy transcends trade
US-China tension is souring the atmosphere of international cooperation, complicating the management of currency reserves, and raising war risks. In this context, arguing over whether the US is decoupling or de-risking is futile – to Beijing, it’s all the same.
Anthony Rowley
12
The View|As China courts global tech partnerships, it must bridge the trust gap
Amid falling corporate trust and a US tech barricade, creative solutions are needed, such as setting up centres of collaboration in trusted third countries like Singapore.
Winston Mok
1
Macroscope|Once markets realise how bad the economy is, things will get worse
The economy is set to get worse before it gets better, especially once markets fully realise the bad news – and starts dumping overinflated assets for cash and gold.
Anthony Rowley
1
The View|As the US-China tech war escalates loudly, no one wins
For decades, the US and China engaged in strategic ambiguity to keep their relationship stable, but both are now openly targeting global leadership. By ramping up their rhetoric and acting with explicit intent, the two countries are not only inflicting economic pain but also increasing the chances of a hot war.
Christopher Tang
12
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