an excerpt from
CHINA POLICY
March 4, 2025
PRC–US trade tensions crossed more red lines in February when Trump imposed additional tariffs of ten percent on imports from the PRC, new tariffs on Chinese imports now total 20 percent. Beijing retaliated, imposing its own on some US ag machinery and LNG, restricting some critical mineral exports, sanctioning two US firms and placing Google under an anti-monopoly probe. Targeted and pretty even-handed for now, the clap-back aligned with commentariat calls for restraint and ‘doing our own thing well’.
Beijing sought public input on draft rules to monitor rare earth production. The aim was to tighten control over domestic output to prepare for restricting raw material exports in retaliation for tech sanctions.
A significant PRC lead in global trade, while positive, is unsustainable, argues Gong Jiong 龚炯 Chongyang Institute for Financial Studies; he urges stepping up foreign investment in the PRC. Concurring, Yao Yang 姚洋 National School of Development, forecast firms’ going global on an unprecedented scale.
Duty-free passage of low-cost packages, a key conduit for PRC e-commerce into the US, was suspended by Washington, which later paused the measures due to rollout concerns. Anticipating more headwinds, Song Yuru 宋玉茹 Chinese Academy of Social Sciences advised CBEC (cross-border e-commerce) firms to shift from low-cost competition to innovation and brand-building.