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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Big Tech
A US Postal Service employee sorts mail at a processing and distribution centre in Los Angeles. Photo: AFP
Big Tech
China’s online sellers mull price hikes to offset US tariffs
Chinese merchants face fresh challenges after new US tariffs and the removal of de minimus exemptions.
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China has taken a series of retaliatory measures against the US as a trade war between the two sides intensifies. Photo: Shutterstock
China Economy
Explainer|How is China retaliating against US tariffs, and what impact will it have?
China has announced a basket of measures including tariffs, export restrictions and sanctions on US companies.
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China has surprised markets by keeping the yuan exchange rate stable against the US dollar. Photo: Shutterstock
China Economy
China keeps yuan stable against US dollar: what it means for the trade war
China could allow its currency to weaken to offset the impact of US tariffs on the country’s exports, but has so far declined to do so.
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The US Postal Service has not provided any explanation as to why it suspended delivery of inbound parcels from Hong Kong and mainland China. Photo: AFP
Society
US Postal Service in U-turn on suspending parcels from Hong Kong, mainland China
Government had expressed ‘strong disapproval’ of temporary suspension along with US’ imposition of an extra 10 per cent tariff on the city’s products.
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China’s onshore markets will resume trading on Wednesday after an eight-day break. Photo: Reuters
Banking & Finance
DeepSeek and Trump tariffs will guide winners and losers in China’s markets
Investors are likely to tread lightly as trading commences in the Year of the Snake, as they await the outcome of Trump-Xi talks.
Chinese companies with operations in Mexico are waiting to see whether tariffs will be imposed by the US next month. Photo: EPA-EFE
Global Economy
The US paused tariffs on Mexico – what does it mean for Chinese companies there?
Dynamics in the China-Mexico-US trade relationship are seen as very difficult to profoundly change, and they will extend well beyond Donald Trump’s presidency.
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A tugboat guides a container ship at a port in Oakland, California on Monday. Analysts say China’s retaliatory trade measures against the US could serve as an invitation for negotiation. Photo: EPA-EFE
Diplomacy
China’s US trade moves show it’s ready to fight back but willing to make a deal
Beijing retaliates after Trump’s tariffs take effect, but analysts say China may face tougher trade battle than Canada or Mexico.
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China’s cross-border e-commerce industry has benefited from the “de minimis” tax exemption allowing small shipments to enter the US duty-free. Photo: Shutterstock
China Economy
‘De minimis’ exemption: why US tariff move will hurt consumers more than China
The US’ elimination of a small-package tax exemption ‘will not kill’ the business models of China’s cross-border e-commerce giants, but will hurt American consumers, analysts say.
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Photo: DPA
Daily Pulse|China counters US tariffs
After the US paused tariffs on Canada and Mexico for a month, China could conceivably reach a similar deal on the 10 per cent levy that Trump announced over the weekend.
Gold prices have soared amid uncertainty caused by US President Donald Trump’s trade policies. Photo: Edmond So
Global Economy
Trump tariffs push gold prices to record high as investors seek safe haven
Investor concerns about a potential global trade war have caused gold prices to soar to unprecedented levels.
Google faces antitrust scrutiny in China after US President Donald Trump imposed fresh tariffs on the country. Photo: Reuters
Big Tech
China launches antitrust probe into Google after Trump tariffs
The State Administration for Market Regulation initiated the investigation into the internet search giant after the US imposed 10 per cent tariffs.
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A container ship docks at a port in Oakland, California on Monday. Photo: AFP
Diplomacy
China to impose tariffs on US products, launches anti-monopoly probe into Google
Beijing to levy tariffs of 10 to 15 per cent on some American products and restrict exports of key minerals as US trade tensions escalate.
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Diplomacy
China criticises US tariff, Panama Canal and AI policies
Illustration: Craig Stephens
World Opinion
Opinion|How Trump is creating a more peaceful and cooperative multipolar world
While Trump escalates tensions with friends and foes alike, global realities could force his hand towards cooperation.
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Bullion banks have been transporting gold from Asian trading hubs to the US to profit from unusually high US gold futures. Photo: Reuters
Banking & Finance
Gold hits record high as Trump’s tariffs spur safe-haven buying
Gold hit US$2,830.49 per ounce on Monday due to the safe-haven demand driven by uncertainty surrounding Trump’s tariffs.
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US President Donald Trump (left) and UK Prime Minister Keir Starmer. Photo: AFP
Europe
Starmer rejects Trump ‘out of line’ comment, calls UK-US trade ‘fair’
Asked by BBC on Monday if he will target the UK with tariffs, Trump said: ‘UK is out of line but I’m sure that one … can be worked out’.
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US President Donald Trump has raised the prospect of US tariffs on EU goods. Photo: TNS
Diplomacy
China could win big from transatlantic trade war, EU leaders warn Trump
Bloc says it would respond firmly to any arbitrary imposition of tariffs on European goods.
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Cargo ships loaded with containers are seen berthing in Qingdao Port, east China’s Shandong province, last month. Photo: AFP
Global Economy
Facing Trump tariffs, China exporters brace for long, winding Year of the Snake
Analysts assess impact of new American action targeting imports, as uncertainty looms and next week could bring ‘a completely different world’.
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Hong Kong banks left their prime lending rates unchanged on Monday. Photo: Shutterstock
Banking & Finance
Dollar strength more worrying to Asian stocks than China tariffs: Hang Seng Bank
Prospects for Asian equities remain positive due to China’s stimulus measures and strong Asean trade links, Hang Seng Bank official says.
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Diplomacy
China denounces US tariffs, vows WTO action
Hong Kong Monetary Authority CEO Eddie Yue Wai-man, pictured at his offices in IFC Two on September 26, 2024. Photo: Jonathan Wong
Banking & Finance
Hong Kong is well positioned to weather trade-war fallout: HKMA chief
Economy could take some hits, but diverse export destinations and Beijing’s support will mitigate negative impacts, Eddie Yue says.
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The Chinese Ministry of Public Security has urged Washington to maintain the hard-won conducive atmosphere in China-US anti-drug cooperation. Photo: Handout
Diplomacy
China warns that US tariffs will hit fentanyl cooperation efforts, damage trust
Shifting blame to other countries will not solve the problem and will ‘seriously damage’ bilateral actions on narcotics control.
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A worker checks rolls of glass fibre at a factory in Chongqing. Growth in China’s manufacturing sector unexpectedly declined sharply in January, according to a new report. Photo: AFP
China Economy
China’s factory activity growth slows again as Trump tariffs loom
A key gauge of China’s manufacturing activity unexpectedly fell in January, underlining the economic challenges Beijing faces.
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There has been growing demand from mainland Chinese companies for yuan trade finance since 2023 following an increase in US interest rates. Photo: Reuters
Banking & Finance
Yuan trade finance rises in Hong Kong as firms seek cost efficiencies
The Chinese currency’s cheaper funding costs and growing offshore liquidity, coupled with a new facility, are boosting its appeal.
In response to US tariffs, China says it will safeguard its interests. Photo: AFP
Diplomacy
China hits back at US tariffs with vow to take case to the WTO
Decision by Trump administration to impose 10 per cent tariffs on imports from China ‘disrupts normal China-US trade’, Ministry of Commerce says.
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US President Donald Trump drives a golf cart at a tournament in New Jersey, US. His administration has announced plans to hike tariffs on made-in-China buggies by more than 450 per cent. Photo: AFP
China Economy
Big swing: Chinese golf cart makers are moving to US to dodge tariff blitz
Some Chinese manufacturers have been hit by a 1,000% hike in import duties, pushing them to shift production to America.
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US President Donald Trump has imposed tariffs on the country’s three largest trading partners, risking a trade war that could cause broad economic disruption. Photo: AFP
China
Trump signs executive orders imposing steep tariffs on China, Canada and Mexico
White House says move necessary to staunch flow of fentanyl and migrants to US.
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The US Federal Reserve building is seen in Washington on January 26. Photo: Reuters
United States & Canada
US charges former Fed official with spying for China
John Harold Rogers allegedly sought to leak trade secrets while being paid US$450,000 pretending to teach at a Chinese university.
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Opinion
Editorial|Trump renews trade war despite risks at home and globally
China, along with much of the world, is better prepared for US president’s latest tariffs that are likely to stoke American inflation.
SCMP Editorial
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Macroscope|Tariff wars show just how badly we need global trade reform
While some want a return to trade norms, not many are willing to consider if yesterday’s liberalisation craze was ever sustainable.
Anthony Rowley
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Outside In|Trump’s plans have to contend with the law of unintended consequences
From trade to immigration, Trump’s agenda risks a backlash. The question is whether he sees the problem and will change tack.
David Dodwell
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Macroscope|Trump’s glaring policy contradictions are both a blessing and a curse
Tensions within Trump’s economic policies could lead to some being scrapped, but they could also be a further source of chaos.
Nicholas Spiro
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Editorial|As Trump begins his second term in the White House, an eerie feeling of deja vu
Inaugural speech sounds like a copy of what the US president said eight years ago, but now China is better prepared to meet his challenges.
SCMP Editorial
1
Macroscope|Trump’s tariffs look set to backfire but that won’t stop him
While it’s hard to predict the outcome of US president-elect’s nationalist economic strategy, all signs point to self-inflicted damage.
Anthony Rowley
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Editorial|Robust exports show China is embedded in global supply chain
As Trump administration looms, record trade performance for 2024 will fuel talk of overcapacity and increase pressure on Beijing to rebalance the economy.
SCMP Editorial
My Take|China’s tech upgrade keeps export machine roaring despite US tariffs
The proliferation of e-commerce and other technologies has helped China maintain its resilience amid trade barriers.
SCMP ColumnistZhou Xin
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Macroscope|Trump 2.0 will hit Asian economies harder
Asia’s best hope is that the transactional side of the incoming US president wins out and he strikes a grand bargain with China.
Nicholas Spiro
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The View|Languishing wars, a stagnant China? Investors shouldn’t be so sure
While some forecast a 10 per cent rise for the S&P 500 and an underperforming China this year, key variables complicate such outcomes.
Richard Harris
Outside In|Does Trump’s tariff-happy team realise China is playing weiqi, not chess?
Much depends on how successfully Trump seduces leaders away from multilateral rule-making and how firmly China resists the siren call of bilateralism.
David Dodwell
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Opinion|Trump effect already felt as China scrambles to mend ties with US allies
Beijing’s moves to ease tensions with India, Japan and others appear to be part of strategy to avoid clash with Donald Trump’s White House.
Shi Jiangtao
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