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
Global Economy
A customer makes a payment using China’s digital currency, or e-CNY, at a store in Beijing. Photo: Getty Images
Global Economy
China expands digital-yuan push to Singapore and Asean trade routes
PBOC pledges to integrate e-CNY into the New International Land-Sea Trade Corridor, boost adoption in Southeast Asia via China’s CIPS payment network.
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Sun Lei, China’s deputy permanent representative to the UN, speaks during a Security Council briefing on threats to international peace and security in New York on Tuesday. Venezuela requested a Security Council meeting, citing escalating tensions resulting from “US aggression” against the country. Photo: EPA
Diplomacy
China, Russia clash with US at UN over Venezuela oil seizures and naval pressure
Venezuela turns to UN as Trump’s oil crackdown intensifies and Caracas advances a law targeting those in support of naval blockades.
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Representatives of the “Pax Silica” signatories hold signed documents at a summit held in Washington on December 12. The initiative is America’s new vision for the international AI supply chain. Photo: Getty Images/AFP
Diplomacy
Explainer|Will US-led ‘Pax Silica’ be a new dawn for the international AI supply chain?
Trump administration aims for deeper technology cooperation on new AI infrastructure with allies.
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The USTR said China’s industrial plans target “every major segment of the semiconductor supply chain,” including fabrication, design, assembly, testing and packaging. Photo: Shutterstock
China
US labels Chinese chips an economic threat, but delays tariff impact until 2027
Timeline reflects effort to preserve trade truce with Beijing rather than build leverage through faster import duty escalation, analysts say.
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Dai Shuying operates a plant protection drone under the guidance of her grandson Wang Tiantian in east China’s Anhui province. Photo: Xinhua
Global Economy
‘Bad policy’: China’s drone makers to shrug off US ban, analysts say
The addition of foreign drone makers, including those from China, to a US trade blacklist is unlikely to heat up relations, observers said.
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Illustration: Craig Stephens
China Opinion
Opinion|Forget the US dollar. Watch water and energy resources instead
In our increasingly hi-tech-based economy and financial systems, energy and water resources will be macroeconomically critical.
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A drone on display at DJI’s flagship shop in Hong Kong. The Trump administration has barred the approval of Shenzhen-based DJI’s new models. Photo: Reuters
China
US adds new models of China’s DJI and all other foreign drones to its blacklist
The FCC move, which does not affect existing DJI models, is a significant escalation in Washington’s battle to crack down on Chinese drones.
4
A worker stacks steel products meant for the export market at a factory in Binzhou, Shandong province, China on April 15. Photo: AFP
China Opinion
Opinion|Why China has moved to curb steel exports
China’s pivot to emerging markets has kept its export machine running. But frictions are growing and steel is the most visible flashpoint.
1
Vehicles awaiting export at Nanjing Port in China’s eastern Jiangsu province. Photo: AFP
China Economy
China’s record trade surplus could prompt protectionist response in 2026: report
American researchers say restrictions on Chinese imports could help create complications for Beijing’s economic growth target next year.
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A 3D-printed miniature model of U.S. President Donald Trump, the Switzerland flag and the word ‘Tariffs’ in this illustration from July 23. Photo: Reuters
Europe
Trump tariffs push Swiss pharma CEO to urge price alignment with US
Switzerland and the United States are locked in negotiations on the details of a deal slashing a whopping 39 per cent levy to 15 per cent.
Illustration: Craig Stephens
World Opinion
Opinion|How Trump is hastening the end of American hegemony
Although the US economy is growing and inflation remains low, the uncertainty sowed by the president’s policies will have sobering long-term consequences.
Illustration: Lau Ka-kuen
Politics
Are Trump loyalists struggling in US rural heartland ready to say ‘enough’?
Hammered by crippling costs and precious revenue lost to China, Midwest farmers’ loyalty to the US president will be tested in 2026 midterms.
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US Secretary of State Marco Rubio during his end-of-year press conference at the State Department on Friday. Photo: Reuters
Diplomacy
Rubio swaps hawk for diplomat in year-end pivot on China
Top US envoy eschews ‘pacing threat’ label, stressing cooperation and Western hemisphere priorities for 2026.
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An employee stands next to solar modules at a solar energy technology company in Huaian, in China’s Jiangsu province, on December 17. Photo: AFP
China Opinion
Opinion|Why China is cracking down on ‘involution’
Involution is a structural phenomenon with both domestic and global implications that China’s leaders are dedicated to addressing.
Photo: Reuters
Daily Pulse|TikTok deal, China slowdown, Vanke debt deadline
This week: TikTok owner agrees sale of US operations, China’s retail sales growth unexpectedly cools, US approves Taiwan arms sales and Jimmy Lai is found guilty. Next week: China Vanke bondholders conclude debt-extension vote, Chinese lawmakers gather, Xiaomi 17 Ultra comes to market, and more.
China is now in third place among foreign US Treasury holders, behind Japan and the United Kingdom. Photo: dpa
China Economy
China cuts US Treasury holdings to lowest level since 2008
The stockpile has now fallen to nearly half its November 2013 peak, financial data shows, as long-term sell-off continues.
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US President Donald Trump signed an extensive defence bill on Thursday that restricts US investment in Chinese technology companies and military firms. Photo: TNS
Diplomacy
Trump signs defence bill restricting investment in Chinese tech, military firms
Key provisions target contracts with Chinese biotech companies and outbound investment in technologies with military applications in China.
8
TikTok has reached a deal to sell its US operations to a consortium of American investors. Photo: dpa
Economy, Trade & Business
TikTok reaches deal on new US venture with American investor group
The deal was signed on Thursday, with the landmark move ending years of legal and political uncertainty.
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China secures 7 million tonnes of soybeans, passing halfway mark of its US purchase agreement. Photo: The Minnesota Star Tribune/TNS
Diplomacy
China reportedly sticking to its soybean deal with US, but worries remain
Beijing secures 7 million tonnes of soybeans, passing halfway mark of its US purchase agreement. However, little has been shipped so far.
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Illustration: Craig Stephens
World Opinion
Opinion|Mark 2025. It’s the year China became a peer power to America
China not only forced a trade war backdown, it displayed its hi-tech military might from the waters off Australia to the skies near Japan.
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US Ambassador Kevin Cabrera visited the US Coast Guard cutter Alert during its port call in Panama City, highlighting the enduring maritime partnership between the United States and Panama. Photo: Handout
China
US highlights Panama security ties as China-linked canal ports deal stalls
US envoy’s coastguard visit near Panama comes as Beijing presses for Cosco control and Washington pushes back.
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Illustration: Brian Wang
Diplomacy
As Trump upends US foreign policy, analysts see fresh openings for China
After a turbulent year, experts expect continued disruption to reshape global influence, testing alliances and altering the balance of power.
15
Workers transport soil containing rare earth elements for export at a port in China’s eastern Jiangsu province. Photo: Reuters
China Economy
China confirms issuing of first general licences for rare earth exports
Beijing says it is now granting longer permits giving foreign companies easier access to vital minerals, but many details remain unclear.
8
The Shenzhen Intermediate People’s Court in Guangdong province has found several people guilty of illegally shipping antimony without obtaining export licences. Photo: SCMPOST
China Economy
China jails antimony smugglers in tough stance on critical minerals
Dozens convicted of illegally shipping 166 tonnes of the strategic material, marking a major enforcement of Beijing’s export controls.
1
Shoppers browse an international duty-free mall in Sanya, a city in China’s southern Hainan province. Hainan has implemented a slew of special policies to attract global talent and tourists in recent years. Photo: Xinhua
China Economy
China’s Hainan launches separate customs regime allowing tariff-free imports
Most goods can enter Hainan with zero import duties under the new system, as China looks to turn the island into a strategic buffer zone.
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A China-Europe freight train leave the transshipment yard of Tongjiang North Railway Station in northeastern China’s Heilongjiang province on December 9. Photo: Xinhua
China Economy
As trade deficit mounts, is EU selling what China wants to buy?
Traditional European exports like cars are losing their appeal, while restrictions crimp sales of sought-after lithography machines.
illustration by Lau Ka-kuen
Yeo on how Trump wants to avoid Taiwan upending China relations
Former Singapore foreign minister George Yeo says that Donald Trump is prioritising stable relations with China, and that the US is facing decline amid a shift to a multipolar world.
US President Donald addresses the nation from the diplomatic reception room at the White House on Wednesday. Photo: AP
Politics
Trump gives himself high marks in 2025 report card, with his eyes on 2026 fight
In a White House speech, the president claimed economic and foreign policy wins while urging voters to back his agenda in the midterms.
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Opinion
Outside In|As the US pursues unilateralism, China faces challenging task as Apec host
China’s return as Apec chair is an opportunity to show that both the organisation and its message of multilateralism are as relevant as ever.
David Dodwell
Editorial|Less hostility towards China in new US security strategy is welcome
The plan’s watering down of America’s antagonism towards China bodes well for both nations and the world.
SCMP Editorial
Editorial|Export curbs or not, Trump’s America can’t slow China’s tech surge
US debate over how to contain China’s tech development is irrelevant as Chinese domestic industry development has already taken full flight.
SCMP Editorial
2
Outside In|It’s an expensive Christmas for Americans thanks to Trump’s tariffs
It’s been years since the US president extolled the virtues of trade wars: how much longer before he recognises tariffs harm the US economy?
David Dodwell
2
As I see it|How Nexperia became a casualty of the US-China trade war
Unless the two superpowers reach a long-term solution to trade tensions, smaller companies and economies will get caught in the crossfire.
SCMP ColumnistAlex Lo
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Editorial|China’s commitment to globalisation evident at import expo
The event also underlined the importance of mainland consumers as growth drivers for the world economy.
SCMP Editorial
The View|Busan truce foreshadows turning of tide in US-China power balance
What has become evident is that the US needs other countries to agree to its plans and help enforce them, while China is strong enough to act on its own.
Winston Mok
1
Macroscope|Exports no longer enough to lift Asia out of ‘middle-income trap’
Developing nations are being urged to boost domestic demand and mutual trade to drive growth, but key factors like population ageing must also be addressed.
Anthony Rowley
2
As I see it|How Deng Xiaoping secured China’s winning hand in the tech war
Years before Washington would target Beijing’s tech industry, the Chinese leader unleashed the country’s scientific potential.
SCMP ColumnistAlex Lo
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Macroscope|Has Trump 2.0 really been a boon to stock markets and the economy?
Although asset prices performed strongly this year and there has been no recession, Trump’s second term is a Rubicon-crossing moment for the US and global economy.
Nicholas Spiro
1
Editorial|Hot on heels of truce with US, import expo shows China’s resolve to open up
More than an exhibition, the expo is a statement of intent in a rapidly changing global landscape.
SCMP Editorial
Editorial|Cheaper Chinese goods will aid Trump’s push to lower interest rates
The US-China deal will bring some relief to US inflationary pressure, strengthening the American president’s case for the Fed to further ease rates.
SCMP Editorial
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