[Source/Observer Network Xiong Chaoyan] In response to the United States' unreasonable initiation and escalation of the tariff trade war, China once again took a tough countermeasure on April 11 by announcing an increase in tariffs on US goods to 125%. The Ministry of Commerce pointed out on the same day that the US side's repeated imposition of exorbitant tariffs on China has already become a numerical game and a joke, with no practical significance in economics. If the US side continues this numerical game, China will not respond. However, China also emphasized that if the US side persists in substantially infringing upon China's rights and interests, it will firmly counteract and see it through to the end.
American consumer news and business channel CNBC reported on April 16, taking this statement as a starting point, pointing out that although China seems to no longer focus on imposing tariffs on goods, some signs indicate that a series of non-tariff restrictive measures are becoming countermeasures against the US. Previously, China had expanded its export control of rare earth minerals and listed several American companies on the Unreliable Entity List and under anti-monopoly investigations, while the latest reports about Boeing continue to make the US side "nervous."
Scholars from think tanks believe that China is clearly sending a signal to the US - it's not just the US that can take action; China also has multiple tools for response. Apart from this, in the attention-grabbing service trade sector, some institutions and analysts also believe that China is accumulating advantages.
The general expectation among analysts is that China's subsequent non-tariff policy tools remain strong and effective. A senior economist said: "Only when a country has suffered enough self-inflicted harm might it consider softening its stance and truly return to the negotiating table."
Trump waiting in the Oval Office at the White House to answer a call. CNN file photo
Beyond tariffs, China has a set of "countermeasure combinations."
CNBC noticed and believed that during Trump's continued imposition of tariffs, China has launched a series of non-tariff restrictive measures, including expanding export controls on rare earth minerals and conducting anti-monopoly investigations on American companies like DuPont and Google.
Earlier, China had begun tightening its export controls on key mineral elements to the US, meaning that Chinese enterprises must obtain special permits to export these resources, which effectively restricts the US's access to critical mineral resources needed for producing items such as semiconductors, missile defense systems, and solar cells.
Before Trump announced the high "reciprocal" tariffs, he had already imposed multiple rounds of tariffs on China as part of a series of "countermeasure combinations." China listed ten American enterprises, including Tecom, on the Unreliable Entity List; placed 15 American entities that endanger China's national security and interests on the export control list, prohibiting dual-use items from being exported to them. After Trump escalated the tariff war with China, more American companies were added to China's Unreliable Entity List.
According to media reports, the "latest countermeasure" was a report by Bloomberg on April 15, citing sources saying that as part of its retaliation against US tariffs, China has requested domestic airlines to stop receiving aircraft from Boeing and suspend purchases of related equipment and components.
In the fleet of Chinese airlines, Airbus leads Boeing. Bloomberg chart
Bloomberg noted that this is another significant setback for Boeing in one of its largest markets. Since the beginning of this year, Boeing's stock price has fallen by more than 10%. CNBC pointed out that halting deliveries of aircraft to China would further exacerbate Boeing's financial difficulties, as the company struggles to cope with a long-standing quality crisis.
Wendy Cutler, deputy director of the Asia Society Policy Institute (ASPI), stated: "China is clearly sending a signal to the US - in this 'game of brinkmanship,' both sides can act. China has many means at its disposal, and all these measures will bring varying degrees of pain to the US side." She added: "Under the influence of high tariffs and other restrictive measures, the two economies are accelerating their decoupling."
In the service trade sector, the US maintains a large surplus with China.
CNBC noted that some people believe that in response to the tariff war initiated by the US, China is seeking to include service trade sectors, including tourism, law, consulting, and financial services, where the US has maintained a huge surplus for many years.
On April 10, a responsible person from the Ministry of Commerce pointed out that objectively recognizing and evaluating whether bilateral trade between China and the US is balanced requires a comprehensive and in-depth examination, and one cannot only look at the goods trade balance. The US has a significant advantage in service trade. The US is China's largest source of service trade deficits, with the scale generally showing an expanding trend. In 2023, the deficit reached $26.57 billion, accounting for approximately 9.5% of the US's total service trade surplus. Taking into account three factors—goods trade, service trade, and local sales revenue of enterprises based in each other's countries—China and the US have roughly balanced benefits from economic exchanges.
Nomura Securities, Japan's largest securities company, stated in a report on April 15 that over the past 20 years, China's imports of services from the US have surged from $5 billion in 2000 to $55 billion in 2024, increasing more than tenfold. In 2024, the US's service trade surplus with China reached $32 billion. The report believes that China's countermeasures in the service trade front have already begun last week.
On April 9, the Ministry of Culture and Tourism released a message stating that due to the deterioration of Sino-US economic and trade relations and the domestic security situation in the US, the Ministry of Culture and Tourism reminded Chinese tourists to fully assess the risks of traveling to the US and proceed cautiously.
On April 10, the National Film Bureau indicated that it would follow market rules and respect audience choices, moderately reducing the number of American films imported. As a result of this news, shares of several American film companies fell sharply that day. Walt Disney's and Warner Bros. Discovery's stocks fell by 6.79% and 12.53%, respectively.
CNBC noted that these situations may suggest that China intends to exert pressure on the US entertainment, tourism, and education industries.
"These measures target highly visible industries in the US that are politically sensitive, such as aviation, media, and education," added Qian Jing, executive director of ASPI's China Analysis Center. Although these industries are small, the actual economic losses they cause may be limited, "but the reputation effect—such as reduced numbers of Chinese students or more cautious Chinese employees—may trigger a chain reaction in academic circles and the science and technology talent ecosystem."
Nomura Securities estimated that if China significantly increases restrictions on travel to the US, it could impact $24 billion in economic interests. Data shows that tourism services dominate the US's service exports to China, primarily reflected in millions of Chinese tourists consuming in the US, with 71% of expenditures related to education, mainly from tuition fees and living expenses of over 270,000 Chinese students studying in the US.
"We may witness deeper decoupling—not limited to supply chains but also spreading to cultural exchanges, knowledge sharing, and regulatory systems. This may mark a shift in the relationship between the two countries from transactional friction to 'systemic divergence,'" Qian Jing stated.
On April 10, a reporter from Agence France-Presse asked at the regular press conference of the Foreign Ministry, why did China remind its citizens to fully evaluate various risks when planning trips to the US and to proceed cautiously? What risks is the Chinese government reminding its citizens about?
Los Angeles, California, USA. AP Photo
"China's subsequent non-tariff policy tools remain strong and effective."
CNBC cited analysts' general expectations, indicating that China will continue to use non-tariff policy tools, with many trump cards in hand. The report also noted that although a final agreement may lead both sides to cancel some confrontational measures, the prospects for an agreement between the two countries remain slim at present.
William Xu, senior economist at Natixis Greater China, believed: "Ultimately, only when a country has suffered enough self-inflicted harm might it consider softening its stance and truly return to the negotiating table."
Bloomberg published an article on April 14 stating that so far, China's response has not only been a counterattack on the tariff level but also a determined and principled position on issues concerning negotiations, without being led around by the US side.
On April 15, the Financial Times quoted Julian Evans-Pritchard, chief China economist at Capital Economics, who added: "Judging solely by market reactions, I believe the US feels the pain more strongly right now... The US is under greater pressure to sit at the negotiating table for talks."
On April 16, Foreign Ministry spokesperson Lin Jian presided over the regular press conference. NHK journalist asked about the US imposing tariffs, citing Trump's statement that "the ball is in China's court" and "China needs to reach an agreement with the US, while the US does not need to reach an agreement with China." What is China's response?
"This tariff war was initiated by the US side, and China's necessary countermeasures are to uphold its legitimate rights and interests and international fairness and justice, which is entirely reasonable and legal," Lin Jian stated.
Lin Jian emphasized that China's position has always been clear: there is no winner in a tariff war or a trade war. China does not want to engage in one, but it is not afraid to do so either. If the US side genuinely wants to resolve issues through dialogue and negotiation, it should stop its extreme pressure tactics, stop threats and blackmail, and engage in dialogue with China on the basis of equality, respect, and mutual benefit.
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Original source: https://www.toutiao.com/article/7494270088217002536/
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