Chinese leader Xi Jinping has warned that “bullying” and “hegemonism” will only backfire, in a veiled reference to the United States, just a day after a temporary truce was agreed in the trade war between the world’s two largest economies. Xi chose to deliver this message at a summit of Latin American and Caribbean officials in Beijing on Tuesday, painting China as a global leader and defender of free trade.
“There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation,” Xi said, reiterating a warning he has made throughout the trade showdown with US President Donald Trump. “Great changes unseen in a century are accelerating, which have made unity and cooperation among nations indispensable,” he added.
Temporary Tariff Truce
The trade agreement reached over the weekend effectively means the US will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%, according to the joint statement. Trump’s 20% fentanyl-related levies on China, imposed in February and March, will stay, and so will China’s countermeasures against the US for those tariffs.
Chinese state media have cast the reduction in tariffs as being on equal terms, emphasizing that both sides are suspending the 24% “reciprocal tariffs” for 90 days and removing the 91% additional tariffs mutually imposed during the rapid-fire retaliatory escalation in April. “This shows that China’s firm countermeasures and resolute stance have been highly effective,” Yuyuan Tantian, a social media account affiliated with state broadcaster CCTV, wrote on microblog Weibo.
China’s Tough Stance
Hu Xijin, the former editor of the state-run Global Times, wrote in a Weibo post that the agreement “is a huge victory for China’s commitment to the principles of equality and mutual respect.” Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing, said China’s tough stance was a matter of principle in terms of upholding the multilateral and free trade principles of the World Trade Organization.
“This is something China must stand firm on. If even China can’t hold the line, wouldn’t that mean the whole world has to beg the US for mercy?” he said. The agreement bought both sides time, he added, “Because the economic and trade ties between China and the US are so deeply intertwined, both sides are feeling the pain.”
Strengthening Ties with Latin America
Xi also vowed to strengthen “solidarity” with Latin America and the Caribbean, a region that Trump has sought to pull closer to Washington’s orbit. Trade between China and the region exceeded $500 billion for the first time last year, the Chinese leader said. Xi announced plans to provide 66 billion yuan ($9.2 billion) worth of credit lines to CELAC countries to support their development, denominated in yuan, as part of larger efforts to popularize the Chinese currency in the region.