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Home » China Condemns American ‘Protectionism’

China Condemns American ‘Protectionism’

April 9, 20253 Mins Read Business
China Condemns American ‘Protectionism’
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The Chinese government on Wednesday issued a lengthy denunciation of American trade policies, accusing the United States of years of protectionism and of violating the trade agreement the two sides had negotiated late in President Trump’s first term.

The document was issued by Beijing’s cabinet information office several hours after Mr. Trump raised to 104 percent the extra tariffs on Chinese goods that he has imposed in his second term.

The missive assailed the United States for preparing to impose additional 90 percent tariffs on May 2 on low-value parcels from China, which enter the United States with no customs inspection and no duties paid. The value of these so-called de minimis shipments has soared more than tenfold in recent years, exceeding $60 billion last year.

There were a few unexpected conciliatory notes in the Chinese statement. “As two major countries at different stages of development with distinct economic systems, it is natural for China and the U.S. to have differences and frictions in their economic and trade cooperation,” it said.

The report, issued by the State Council Information Office, criticized the United States for having considerably tightened export controls on the transfer to China of technologies with both civilian and military applications. The office suggested that this was a violation of the spirit of the so-called Phase One agreement reached in 2020.

It said that China had abided by the pact, which also called for China to increase its purchases of American energy, agricultural products and manufactured goods, such as aircraft from Boeing, the American aerospace giant.

“The Chinese side upheld the spirit of contract and endeavored to overcome multiple adverse factors, including the unexpected impact of the pandemic, subsequent supply chain disruptions, and global economic recession, to ensure implementation of the agreement,” the report said.

China cited production delays by Boeing during the pandemic as reasons for not fulfilling that part of the pact.

While Boeing has had delays, Chinese government-controlled airlines have refused to accept delivery of dozens of previously ordered planes for six years. At the same time, a heavily subsidized state-owned manufacturer, the Shanghai-based Commercial Aircraft Corporation of China, is racing to make its own single-aisle passenger planes.

The commentary praised de minimis shipments as giving greater choice to consumers and helping small businesses to compete. Large Chinese e-commerce sites like Shein and Temu have expanded their shipments from factories in China straight to American households.

The document noted that China allows de minimis shipments of parcels through delivery services. But in practice, China allows a far narrower exemption from tariffs than the $800 under the U.S. de minimis rules, limiting the value of many exempted parcels to $27.

The document also did not mention that Congress raised the American de minimis limit to $800 in 2016, from $200 previously, kicking off a huge surge in such shipments across the Pacific from China and fueling a boom for Chinese e-commerce companies.

China Donald J International Trade and World Market Protectionism (Trade) Trump United States
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