US Tariffs: Uphold multilateral trading systems – China urges UK, EU

Wang Yi’s recent calls to Britain and the European Union reflect China’s ongoing effort to counter the economic and trade pressure it faces from the United States, especially regarding the escalating tariff war. Here are the key points from these developments:

China’s Response to US Tariffs

• Rising Tensions: The trade war between China and the US continues to escalate, with the US imposing tariffs up to 145% on Chinese goods, prompting retaliatory measures from Beijing with 125% duties on US imports.
• Wang Yi’s Position: In his phone calls with British and EU officials, Chinese Foreign Minister Wang Yi framed the US tariff measures as a violation of World Trade Organization (WTO) rules, accusing the US of using tariffs as a “weapon” against other nations.

Appeal for Multilateral Support

• UK and EU’s Role: Wang emphasized that China and Britain, along with the EU, have a shared responsibility to defend multilateral trading systems against what he described as “unilateral bullying” by the US.
• Strategic Cooperation: Wang’s calls signal China’s desire to strengthen relations with Europe and Britain, viewing them as key partners in countering US trade policies. This is especially important as the EU and China have been quietly increasing economic coordination in recent months, including in areas like electric vehicles (EVs) and agriculture.

China-EU Coordination

• Recent Developments: The EU and China have been intensifying their economic dialogues, as seen in the visit of EU trade chief Maros Sefcovic in March. They have also started discussions on issues like EV supply chains and agri-food market access, which could help buffer China’s economic interests amid the trade war.
• Electric Vehicle (EV) Pricing: The EU and China are also revisiting negotiations over minimum pricing for Chinese-made EVs, a direct response to the EU’s tariffs on Chinese electric vehicles, which Beijing sees as a significant challenge.

China’s Warning to Global Partners

• Economic Deals with the US: Following these diplomatic efforts, Beijing warned other nations not to strike broader economic deals with the US at China’s expense. It also threatened countermeasures if such actions were taken, signaling China’s intent to protect its economic interests through strategic diplomatic channels.

China’s push for multilateralism and its efforts to rally support from the UK and the EU seem aimed at isolating the US in its approach to global trade. By presenting the US as a destabilizing force in the global economy, Beijing is attempting to garner broader international support for its stance, particularly in trade negotiations that affect the global supply chain.

Would you like further insights on the global economic impact of this trade war, or a breakdown of how China’s relationship with the EU might evolve over the coming months?