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
China Opinion
Illustration: Huy Truong
China Opinion
Opinion|Will US threats over Iran be the last straw for Beijing?
China’s measured stance since the Xi-Trump summit in May is reaching a tipping point as US pressure mounts.
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Several Chinese technology companies are suing the US government over their addition to Pentagon blacklists. Photo: AFP
Big Tech
CXMT vs Pentagon: how China’s tech firms are challenging US blacklists in court
Chipmaker CXMT has sued the US government to be removed from a Pentagon blacklist – joining a wave of legal challenges by Chinese tech firms.
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US Treasury Secretary Scott Bessent announced “Operation Economic Outcast” on Monday, which expanded secondary sanctions on entities in jurisdictions deemed to support Tehran. Photo: Getty Images/TNS
Diplomacy
US Treasury sanctions Hong Kong-based firm over Iran money laundering ties
Kameng Trading Ltd allegedly acted as front company to help Iran’s Pedram Pirouzan Exchange House access international financial system.
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Chinese President Xi Jinping and US President Donald Trump in Beijing in May. Photo: AP
Diplomacy
Daily Pulse|Xi-Trump summit plans, Nepal disaster, SCO summit
This week: President Xi Jinping may take China business delegation to US and sign trade-war truce extension with Trump, hundreds killed in Nepal-China disaster, Alibaba holds record Hong Kong share sale. Next week: Xi attends SCO summit, Shein begins trading after long-delayed IPO, August PMI may show factory slowdown and more.
Shenzhen-listed Sieyuan Electric, a grid-equipment maker, is among the firms affected by Washington’s latest order. Photo: Handout
Global Economy
Chinese power stocks slump after US grid ban: is the sell-off warranted?
Sungrow and Sieyuan shares fell sharply after Washington’s order, but analysts say markets may be overlooking enforcement hurdles and strong global demand.
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US President Donald Trump says he has no interest in meeting other countries to discuss the conflict with Iran. Photo: EPA
US
Talks are ‘only way out’ on Iran, Beijing says as Trump hints at Chinese bank bans
Latest salvo from US president adds pressure to already fragile US-China ties before expected summit in Washington.
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BYD, China’s top electric vehicle manufacturer, leads the way in terms of battery and autonomous driving technologies. Experts say the US would benefit from some Chinese involvement in the American industry. Photo: Xinhua
Diplomacy
US urged to use Beijing playbook to secure Chinese tech transfers
Experts say Washington should target areas where cutting-edge Chinese technological know-how could be welcomed, then applied to help US.
9
Donald Trump and Xi Jinping are expected to meet in Washington on September 24. Photo: TNS
Diplomacy
Chinese execs may join Xi’s US trip, as trade truce extension ‘almost certain’
Inclusion of business leaders in delegation is under discussion and one-year deal agreed in Busan is likely to be extended, sources say.
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The era of open oceans could be drawing to a close, says academic Di Dongsheng, who urges Beijing to prepare “for struggle in a coming contest over sea power and the security of shipping routes”. Photo: Getty Images
Diplomacy
What China can do to secure trade routes in its coming high-seas struggle with US
Di Dongsheng argues it could take three decades for China to dominate access to ports, straits, canals and shipping lanes around the world.
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Billionaire philanthropist Bill Gates issued a stark warning about AI’s risks, saying companies were rushing ahead with the technology without a broader plan for the massive upheaval it would cause. Photo: AFP/Getty Images/TNS
Diplomacy
Bill Gates warns of AI’s impact, urges the US and China to cooperate
Tech titan argued on Wednesday artificial intelligence needs significant limits or else the harm to humans will outweigh any potential good.
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Serra Verde’s Pela Ema mine in Brazil produces heavy rare earths from ion-adsorption clay deposits. Photo: Handout
US
US critical minerals proposals to Brazil go unanswered as China looms
A US diplomat says Brasilia has not responded to two overtures, even as a US-backed rare earth acquisition in Brazil nears completion.
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The proposed data-centre campus at Berry Hill, a 3,500-acre industrial site 16 kilometres outside Danville, Virginia. Photo: Vincent Chow
Economy, Trade & Business
In a small Virginia town, distrust of Big Tech hampers Trump’s AI push
Controversy over first data centres in Danville typifies ongoing debate with concerns over secrecy, distrust and China’s influence.
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Illustration: Henry Wong
World Opinion
Opinion|The security-obsessed global economy needs its own Helsinki process
Cold War rivals used ground rules to make competition more transparent, bounded and predictable. Today’s weaponised trade needs the same ambition.
A US guided-missile destroyer blocks an Iran-flagged crude oil tanker attempting to sail towards an Iranian port on April 24. Photo: AFP
China Economy
How will US ‘D-Day’ threat against Iranian economy impact China’s oil supply?
As northern hemisphere prepares for winter, analysts say latest US sanctions would not deter China from purchasing Iranian oil.
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Republican Senator Darline Graham addresses supporters on Tuesday after winning a special primary run-off to replace her brother, the late Lindsey Graham in the November general election. Photo: AP
Politics
Trump pick Darline Graham wins election despite struggling over Taiwan question
The political newcomer wins Republican Senate nomination after failing to answer questions about South China Sea issues.
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Brazilian President Luiz Inacio Lula da Silva (left) discussed critical minerals during his talks with US President Donald Trump (right) in Washington in May. Photo: AFP
Diplomacy
US admits it lost the minerals race to China. Can Brazil exploit the rivalry?
Brazilian energy minister reveals Trump team’s concession as US announces major investment in South American rare earth mine.
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Shipping containers are seen in the Port of Montreal in Quebec, on Sunday. Photo: AFP
Global Economy
What does the US-Canada trade dispute mean for China?
After Canada stood firm in negotiations, analysts say that Washington failed to gain ‘veto’ on Ottawa’s trade with other countries.
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The dialogue in Beijing comes just weeks ahead of a trip to the US by Chinese President Xi Jinping, his first state visit to the country since 2015. Photo: Handout
Diplomacy
‘Normal stability’: US-China Track 1.5 talks offer formula for ties
Senior party official Liu Haixing uses unofficial discussions to make the case for disagreements to remain ‘controllable’.
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The United Nations General Assembly Hall in New York on March 25. Governments increasingly face the same demand: prove the depth of your commitment by closing the door on everyone else. Photo: Zuma press wire / dpa
World Opinion
Opinion|For states, being part of everything doesn’t mean being part of nothing
The opposite of commitment is breach, not multiplicity. A nation’s reliability isn’t measured by how many treaties it signs.
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Chinese telecommunication companies like Huawei could be marginalised after the US authorised new investment in Venezuela’s telecom sector. Photo: Shutterstoock
Diplomacy
US targets China’s telecoms grip in Venezuela with new sanctions carve-out
Move could test Huawei and ZTE’s long-standing foothold as Washington extends its China reach from oil to another strategic sector.
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Illustration: Lau Ka-kuen
China Opinion
Opinion|China’s view of Trump’s America has changed from alarm to a shrug
Erratic and transactional, the US leader’s approach exposes domestic governance flaws and the limits of Washington’s containment strategy.
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Commerce Minister Wang Wentao and Swiss President Guy Parmelin clinched the FTA expansion deal in talks in Bern on Thursday. Photo: Handout
China Economy
China and Switzerland have a new trade agreement. What does it mean for the EU?
The move, seen by analysts as a signal to the EU, will eventually double duty-free coverage included in 12-year-old free-trade agreement.
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Brazil’s President Lula da Silva speaks during a joint press conference with German Chancellor Friedrich Merz (not pictured) at the Herrenhausen Palace in Hanover, Germany, on April 20. Photo: dpa
Americas
Brazil’s Lula seeks end to ‘baseless tariffs’ in call with Trump
Washington imposed two new sets of tariffs on Brazil in July, a key campaign issue ahead for the left-wing president ahead of the presidential election in October.
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Harvesters in a soybean field in northeastern China’s Heilongjiang province in September. Photo: Xinhua
China Economy
China enlists AI in soybean hunt, but self-sufficiency unlikely any time soon
New platform is China’s latest effort to improve home-grown soybean varieties and reduce reliance on imports.
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Hong Kong has introduced a range of measures in recent years aimed at turning the city into a major gold trading centre. Photo: Getty Images
Banking & Finance
HKEX gold futures smash delivery record as US sanctions reshape trade
The milestone more than doubles the previous peak recorded in 2018.
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Illustration: Lau Ka-kuen
China Economy
In Focus|As the US widens a Xinjiang trade ban, China’s cotton industry shrugs it off
Dozens of firms that source from the region were added to a US import blacklist, but few appear worried after years of diversification.
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Peru’s new government did not mention the Chinese-built Chancay megaport, operated by Cosco Shipping, in its first comprehensive policy programme. Photo: Handout
Diplomacy
Peru vows to apply Hong Kong trade deal, but is silent on mainland China
Prime Minister Luis Galarreta says country aims to become trade and investment bridge between South America and Asia-Pacific.
1
An aerial view of the Contecon Manzanillo container terminal at the Port of Manzanillo in Mexico, a key gateway for trade with Asia. Photo: Handout
US
Beijing rejects US tariff report as Mexico plans new China trade curbs
He Yadong says US levies threaten supply chains, while Mexico considers new duties on Chinese steel and textiles.
Opinion
Mouthing Off|Why is the US-Canada trade war seemingly hinging on drinking games?
As tensions rise between former besties Canada and the US, the former’s refusal to sell US alcohol is a highly contentious point.
Andrew Sun
1
As I see it|The US is telling its trading partners – do as I say, not as I do
While Washington says it is monitoring certain countries, including Japan, for foreign exchange interventions, it also coordinated with Tokyo to prop up the yen.
SCMP ColumnistAlex Lo
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Editorial|‘Transshipment scam’ is not a global conspiracy but a warning to the US
The White House’s accusation that over 40 nations are involved in a shadow network that harms the US betrays a misunderstanding of how trade works.
SCMP Editorial
7
Outside In|Why Donald Trump may regret reheating his global trade war
Over the coming months, efforts to China-proof supply chains are likely to drive US foreign policy. Success, however, is unlikely to follow.
David Dodwell
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Editorial|Wang-Rubio meeting after Trump remarks shows guard rail is up and working
Not even Trump’s inflammatory accusations of Chinese election interference have derailed the relationship.
SCMP Editorial
2
Editorial|US tariff threat over forced labour looks like old wine in a new bottle
With the latest escalation in Trump’s forever tariff war, Washington is alienating allies and adversaries alike.
SCMP Editorial
2
As I see it|How adversity has guided the path of Chinese civilisation through the ages
Recent findings by archaeologists suggest the push for innovative solutions is often borne out of the struggle to overcome severe challenges.
SCMP ColumnistAlex Lo
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The View|In Beijing, the US and China tiptoed around tech and critical minerals
Summit addressed the top and bottom layers – geopolitical framing and trade mechanics – but left the strategic middle layer largely implicit.
Winston Mok
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As I see it|Beijing had already won before the Trump-Xi summit even started
There’s a lesson for the US president in Napoleon’s invasion of Russia in the early 19th century.
SCMP ColumnistAlex Lo
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Editorial|Xi-Trump summit in Beijing heralds start of constructive, stable relations
Through the meticulously planned welcome ceremony and Xi Jinping’s remarks, Beijing has emphasised the importance of stable bilateral ties to the world.
SCMP Editorial
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Macroscope|Trump-Xi summit puts US vulnerabilities on display
China weaponising rare earths turned the tables on Trump, showing how unprepared Western governments and firms were for a full trade war.
Nicholas Spiro
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Editorial|Trump-Xi summit may not yield a deal but is still significant
China and the US need to build strategic trust and a working framework, stabilising ties amid global uncertainty and fragmentation.
SCMP Editorial
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