China has decided to contest the new tariffs imposed by the Trump administration at the World Trade Organization (WTO) and is considering various countermeasures.
This was reported by Reuters.
The Chinese government condemned the introduction of a 10% tariff on Chinese imports on Sunday, February 2, while leaving the door open for negotiations with the United States.
The Ministry of Finance in China did not announce any decisive counteractions, stating only its intention to challenge the tariffs at the WTO. This approach contrasts with that of Canada and Mexico, which plan to enact proportional restrictions in response to the new U.S. tariffs.
The Chinese Ministry of Commerce stated that Trump's actions "seriously violate" international trade rules and urged the U.S. to engage in an honest dialogue and strengthen cooperation.
Filing a complaint with the WTO could allow Beijing to gain a public relations victory, but it will not eliminate Trump's tariffs. The WTO dispute resolution system has been effectively halted since 2019, when Trump blocked the appointment of judges to hear appeals.
The massive positive trade balance of China, which was nearly $1 trillion last year, presents a vulnerability for Beijing.
As reported by Reuters, Chinese exports in key industrial sectors, including automotive manufacturing, are growing faster in volume than in value, indicating that manufacturers are lowering prices to capture foreign markets as domestic demand sharply declines.
For this reason, analysts anticipated that China would seek to quickly reach an agreement with Trump to mitigate the impact of U.S. trade measures.
China has also been preparing for months for Trump's anticipated tariff measures, strengthening ties with allies, striving for greater self-sufficiency in key technology sectors, and setting aside funds to support its vulnerable economy.
Reminder:
U.S. President Donald Trump signed three orders to impose additional tariffs on goods from Canada, Mexico, and China, marking the first official decision in the trade war. Leaders of Canada and Mexico promised to respond with similar measures.
