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TWN
Info Service on WTO and Trade Issues (May25/05) Yerevan, 29 Apr (D. Ravi Kanth) — China on 28 April dismissed United States President Donald Trump’s claim that Chinese President Xi Jinping called him, while the US Treasury Secretary reportedly said that Beijing has the responsibility to de-escalate the ongoing tariff and trade war even though it was caused by the Trump administration, which now seemingly finds itself in a quagmire, according to analysts and media reports. With the spokespersons of China’s foreign and commerce ministries respectively countering each statement made by either President Trump or his cabinet officials on a daily basis over the supposed ongoing consultations, China appears to be wearing out the US administration by not responding to any of its calls. On 28 April, the Chinese foreign ministry spokesperson Guo Jiakun flatly denied President Trump’s statement during an interview with Time magazine on 22 April that President Xi had called him. “As far as I know, there have not been any calls between the two presidents recently,” Guo said. “Let me make it clear one more time that China and the US are not engaged in any consultation or negotiation on tariffs,” the spokesperson said emphatically. However, President Trump continues with his seemingly bewildering posts on his social media website Truth Social, this time saying that “when Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!” The Trump administration is seemingly resorting to modern day propaganda techniques by constantly misleading people with “bombastic” statements while putting a gloss on the worsening ground realities, said analysts. DE-ESCALATE TRADE WAR In what appears to be a response to the Chinese spokesperson’s statement, the US Treasury Secretary Scott Bessent seemingly attempted to turn the tables by suggesting that China needs to de-escalate the ongoing tariff war due to the unsustainable high tariffs. In some brief remarks, Bessent told CNBC on 28 April that he believes that “it’s up to China to de-escalate [the ongoing tariff war], because they [China] sell five times more to us than we sell to them, and so these 120%, 145% tariffs are unsustainable.” It has been a common refrain on the part of US officials that many countries had approached the US, presenting “some very good proposals.” The US often maintained that it is evaluating the proposals from those countries that came to Washington to settle their tariffs in response to the “reciprocal” tariffs announced by President Trump on 2 April. While the varying levels of “reciprocal” tariffs have been paused for 90 days, the Trump administration has unilaterally imposed a 10% baseline tariff on all countries during this period. It remains to be seen whether the baseline tariff will continue even after countries settle with the US regarding the “reciprocal” tariffs. Meanwhile, there appears to be a sense of panic gripping the Trump administration because of a sharp fall in the offloading of goods from containers from China and other countries, according to a report in the Financial Times on 28 April. “Donald Trump’s trade war with Beijing is starting to affect the wider US economy as container port operators and air freight managers report sharp declines in goods transported from China,” the FT reported. According to another report by the AP news agency on 28 April, “America’s aim to mobilise the world to resist China’s increasing influence now seems to be coming apart.” The AP report suggests that “Trump’s tariffs on other countries have turned the US into a less stable partner, forcing many nations to hedge their bets by turning to China for stability and more predictable trade relations.” It argues that “while Trump has asserted that countries are “kissing my ass” to negotiate trade deals on his terms or risk stiff import taxes, Beijing is reaching out to countries far and near to foster deals.” Quoting Singaporean Prime Minister Lawrence Wong, who said that “America and China are now locked in a fierce contest for global supremacy,” the AP report said, “Both powers claim they do not wish to force countries to choose sides. But in reality, each seeks to draw others closer into their respective orbits.” According to the AP report, “Trump’s trade war with China has taken an unexpected toll on American companies.” With “tariffs on Chinese goods now as high as 145%, American companies are warning of rising costs, which could lead to inflation and shortages of products.” The US president, according to the AP report, said “they [China] want to make a deal obviously”, adding that the US had gone “cold turkey” on trade from China. “Right now, they’re not doing business with us,” President Trump is understood to have said. Commenting on China’s strategic efforts to build alliances, the AP report suggested that “Beijing, meanwhile, is capitalizing on the increasing uncertainty. Recently, Chinese President Xi Jinping visited Vietnam, Malaysia, and Cambodia, strengthening economic ties in each nation.” China’s efforts are not limited to Southeast Asia. In Japan, where tensions with China in the past have been high, Beijing is reaching out to cement relations and seek joint approaches to Trump’s trade policies, according to the AP report. The Chinese government is even applying its economic clout to pressure nations such as South Korea, threatening that companies shipping goods containing Chinese rare earth minerals to US defence firms could be sanctioned, the AP reported. +
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