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Zhao Ziwen

Enoch Wong

Iris Deng

China has unveiled retaliatory measures against the United States as the two countries brace for a renewed trade war, but observers say Beijing’s “restrained” moves could signal that it wants to negotiate.
Beijing on Tuesday announced it would impose punitive tariffs of 10 to 15 per cent on some US products from February 10.
The move was in response to the newly announced tariffs of 10 per cent imposed by the US on Chinese products. Washington cited issues over fentanyl controls as the reason for the measure.
China’s Ministry of Finance said it would impose tariffs of 15 per cent on coal and natural gas imports from the US and levy 10 per cent on petroleum, agricultural equipment, high-emission vehicles and pickup trucks.
The ministry said the unilateral imposition of tariffs by the US seriously violated the rules of the World Trade Organization.
“It is not only unhelpful in solving its own problems but also undermines the normal economic and trade cooperation between China and the US,” it said.
Beijing’s tariffs would apply to about US$20 billion of annual imports from the US, compared with the US$450 billion worth of Chinese goods subject to Washington’s tariffs, which took effect earlier on Tuesday, according to an estimate by Capital Economics, a research firm based in London.


Separately, Beijing also announced a slew of export controls on key minerals and launched an anti-monopoly investigation into US tech giant Google.
The State Administration for Market Regulation said the probe of Google – which pulled its search service out of mainland China in 2010 – was initiated on the suspicion that it had violated the country’s antitrust laws, according to a one-line announcement on the regulator’s website on Tuesday.
It did not identify Google’s alleged violations. Most Google services – including search, Gmail and Google Maps – are not available in mainland China, but the US tech giant has maintained some operations in the country, particularly for advertising.
Beijing has been increasingly flexing its muscles against US businesses amid escalating tech and trade wars between the two countries. Its antitrust investigations typically result in fines.
On Tuesday, the Ministry of Commerce also added tungsten, tellurium, bismuth, molybdenum and indium to its export control list.
In addition, it put American clothing company PVH, which owns Calvin Klein, and biotechnology company Illumina on its unreliable entity list.
“The above two entities have interrupted normal transactions with Chinese enterprises and adopted discriminatory measures against them, seriously undermining their legitimate rights and interests,” the ministry said.
It added that the measure was intended to “safeguard national sovereignty, security and development interests”.
Beijing’s retaliatory measures came ahead of a possible phone call between US President Donald Trump and Chinese leader Xi Jinping in the coming days.
Julien Chaisse, a professor of international economic law at City University of Hong Kong’s School of Law, said Beijing’s moves could serve as “an implicit invitation” for negotiation.
“These measures are significant but measured, aimed at demonstrating China’s capacity to retaliate while maintaining strategic flexibility,” he said. “By targeting key US exports, including [liquefied natural gas], crude oil and certain automobiles, China aims to inflict economic costs selectively.”
Da Wei, director of Tsinghua University’s Centre for International Security and Strategy in Beijing, said China’s moves were “measured and restrained”, as US coal and liquefied natural gas accounted for only 1 per cent and 3 per cent of China’s total imports, respectively.
Analysts also said that compared with the immediate relief the US granted to its neighbours by delaying tariffs on Mexican and Canadian goods, Washington might take a hardline approach to Beijing.
Both Canada and Mexico announced retaliatory duties on American goods after Trump announced tariffs on their products on Saturday.
Canada responded with tariffs of 25 per cent on American imports worth C$30 billion (US$20.5 billion) starting from Tuesday.
In response, Trump suspended tariffs on Canadian and Mexican products for 30 days, but the 10 per cent additional tariff on Chinese goods remains.
However, analysts said Trump was likely to retaliate more forcefully against China compared to his treatment of Canada and Mexico.
Within the United States, “there is a big difference between the China factor with Canada and Mexico, especially on security and strategic issues”, said Zhu Feng, the executive dean of Nanjing University’s School of International Studies.
Beijing has long called for dialogue to solve trade disputes and warned that there would be no winners in tariff wars.
But uncertainties linger because of tense bilateral relations, a fierce tech and military rivalry between the US and China, and Trump’s unpredictability.
The 10 per cent tariffs might be just the beginning given that Trump threatened to impose tariffs of 60 per cent on Chinese products during his election campaign.
China has stepped up countermeasures against the US such as tightening export controls on strategic minerals and drones while diversifying to reduce reliance on American imports and technology.


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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


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.
