China Presses US Over Tariffs and Investment Curbs in Latest Trade Talks


Last updated: October 8, 2024

In a high-stakes meeting over the weekend, Beijing voiced concerns to Washington about escalating trade tensions, including tariffs and restrictions on Chinese industries.

The talks, held in the northern port city of Tianjin, saw senior officials from both sides attempt to address their economic differences amid ongoing friction between the world’s two largest economies.

China’s Commerce Vice-Minister Wang Shouwen led the delegation, raising objections over the United States’ Section 301 tariffs, which have targeted Chinese imports since 2018.

Washington’s recent probes into China’s shipping sector and the imposition of fresh levies on products like solar panels and electric vehicles have only increased tensions.

The Section 301 tariffs—initiated under the Trump administration—allow the US to sanction nations it deems guilty of unfair trade practices.

The new tariffs, introduced in May, are part of Washington’s efforts to counter Beijing’s “unfair” economic practices, but China argues they’re a justification for trade protectionism.

In the talks, China pointed to US sanctions on its companies and a two-way restriction on investments, which it claims undermine business confidence.

Beijing’s message was clear: the US needs to define its national security boundaries to foster a stable environment for trade.

Otherwise, uncertainties could destabilize cooperation between American and Chinese companies.

This round of talks marks the second vice-ministerial meeting since April.

Both sides are cautiously stepping up engagement to keep their economic relationship from deteriorating further.

Last month, the White House’s national security adviser, Jake Sullivan, became the first US official in eight years to visit Beijing.

Climate change negotiators from both countries also held talks recently in the Chinese capital, demonstrating a willingness for dialogue beyond trade.

During Saturday’s meeting, discussions touched on sectors where collaboration is essential, from cross-border data flows to clean energy and healthcare.

Both countries agreed on the need for ongoing communication in these areas, and Wang emphasized efforts to “manage differences” and create a positive policy environment for cooperation between the two business communities.

Trade between the US and China has been challenging since former President Donald Trump’s administration imposed tariffs as high as 24% on billions of dollars’ worth of Chinese goods.

Trump, now running for the presidency again, has pledged tougher measures if he returns to the White House.

Meanwhile, US officials, including President Biden, have consistently raised concerns about China’s excess industrial capacity—particularly in solar, automotive, and steel sectors. Beijing has dismissed these claims as a pretext for US protectionism.

However, a survey by the US-China Business Council revealed that overcapacity is among the top challenges faced by American companies operating in China.

The path ahead for these two superpowers remains uncertain, but with continued dialogue, there’s hope that both sides can keep communication open and work through their differences.

For now, both countries seem committed to maintaining the conversation.

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Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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