China warned nations against succumbing to US tariff threats, emphasising that appeasement will only encourage the US. Chinese Foreign Minister Wang Yi asked BRICS nations to resist US pressure, asserting that silence and compromise would embolden the US further.
Chinese Foreign Minister said negotiations with the US will encourage the “bully” at a BRICS meeting on Monday, seeking the group of emerging-market nations to fight back against US tariffs.
“The US, which has long benefited enormously from free trade, is now going so far as to use tariffs as a bargaining chip to demand exorbitant prices from all countries,” according to a Bloomberg News report quoting Wang at the gathering of senior diplomats in Brazil. “If one chooses to remain silent, compromise and cower, it will only make the bully want to push his luck more," he added.
On Tuesday, the Chinese Foreign Ministry released a video with bilingual subtitles, emphasising that Beijing would not give up, the report stated.
“China won’t kneel down. Because we know standing up for ourselves keeps the possibility of cooperation alive, while compromise snuffs it out," the video narrator said.
China's recent statement urging the international community to resist tariffs comes at a time when the US is reshaping the global trade dynamics.
The Chinese “want to show resolve because I think they believe that showing weakness is playing a losing card,” said Dylan Loh, assistant professor at the Nanyang Technological University in Singapore told Bloomberg News. “But that does not mean they won’t want to cut a deal or create off ramps," Loh added.
Meanwhile, the US Secretary of the Treasury Scott Bessent claimed that Beijing wants to de-escalate the tensions.
“That the Chinese are exempting all these goods tells me that they want a de-escalation,” he said in an interview with CNBC, mentioning China's reported measure to suspend 125% tariffs on US imports such as medical equipment, plane leases and at least eight semiconductor-related products.
“What we haven’t done is escalate by embargoing those goods or putting a trade ban on those goods, which we could if we needed to, to gain more leverage,” Bessent said.
China, on the other hand, has constantly denied engaging in trade talks with the US.
On Thursday, China's commerce ministry again denied that Beijing and Washington were conducting any economic or trade negotiations.
Previously, in an interview with Time magazine, US President Donald Trump claimed that China reached out to him. However, he did not specify the details regarding the call.
"He's called," Trump said. “And I don't think that's a sign of weakness on his behalf,” the US President said.
China's plea to the international community comes amid an escalating trade war between the two biggest economies in the world. The trade war began after the US imposed reciprocal tariffs on all trading partners, and China followed with retaliatory tariffs.
Amid the ongoing trade tensions, the Chinese officials on Monday announced that they would provide more incentives to exporters affected by US tariffs, including loans needed for firms impacted. Additionally, they sought to free up more cash for banks and cut interest rates appropriately to promote growth.
(With inputs from Bloomberg)
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