Donald Trump is set to visit China from March 31 to April 2, marking his first trip there in over eight years. The visit revives memories of Richard Nixon’s historic 1972 outreach to Beijing, a turning point in U.S.-China relations.

Over decades of diplomatic engagement and economic interdependence, critics argue that China has gained more from normalization than Washington anticipated. As trade tensions, technology rivalry, and geopolitical competition intensify, this special edition of Gravitas examines what the United States seeks from China—and what it actually gets in return.

Gravitas Special: From Nixon To Trump, Reality Check Of What U.S. Wants But Gets From China

Top officials from the United States and China claimed to have held “very constructive” talks on Saturday in Kuala Lumpur after the first day of negotiations. The two biggest economies of the world are trying to avert trade war escalation and ensure that a meeting happens next week between US President Donald Trump and Chinese President Xi Jinping on the sidelines of the Association of Southeast Asian Nations summit. Trump had threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1 after China announced massive export controls on rare earth magnets and minerals.The recent flare-up disrupted the trade truce crafted by US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng after four meetings since May.&nbsp;“Today’s talks have concluded. They have been very constructive, and we expect them to resume in the morning,” a US Treasury spokesman told AFP.&nbsp;Also Read: <a href="https://www.wionews.com/world/-us-controlled-pak-s-nuclear-arsenal-didn-t-eliminate-aq-khan-on-saudi-pressure-former-cia-agent-1761325963520">‘US controlled Pak’s nuclear arsenal, didn’t eliminate AQ Khan due to Saudi pressure’: Former CIA agent</a>&nbsp;US Treasury Secretary Scott Bessent met with China’s Vice Premier He Lifeng at Merdeka 118—the world’s second-tallest building.China’s top trade negotiator, Li Chenggang, is also participating in the talks.The officials will try to pave the way for Trump and Xi to meet next Thursday at an Asia-Pacific Economic Cooperation summit in South Korea, a high-stakes conversation that could revolve around some interim relief on tariffs, technology controls, and Chinese purchases of US soybeans.&nbsp;<h2>‘We have a lot to talk about with President Xi,’ says Trump</h2>&nbsp;Minutes before the talks started, Trump left Washington for his tour of Asia and said farmers, hit by a Chinese freeze on US soybean purchases, and the democratic island of Taiwan, which China claims as its own territory, would be on the list of topics for talks.&nbsp;Trump also flagged the release of jailed Hong Kong media tycoon Jimmy Lai, whose arrest is viewed as a high-profile example of China’s crackdown on rights and freedoms in the Asian financial hub.“We have a lot to talk about with President Xi, and he has a lot to talk about with us. I think we’ll have a good meeting,” Trump said.Trump left Washington for a five-day trip to Malaysia, Japan, and South Korea, his first to the region and longest journey abroad since taking office in January.He told reporters aboard Air Force One that he would also like China to help in Washington’s dealings with Russia.&nbsp;Also Read: <a href="https://www.wionews.com/world/-all-is-not-well-with-the-un-jaishankar-slams-pakistan-over-protecting-terror-outfit-trf-in-unsc-1761318154530">‘All is not well with the UN’: Jaishankar slams Pakistan over protecting terror outfit TRF in UNSC</a><h2>Both economic powers trying to avoid escalation</h2>&nbsp;The two major economies are trying to avoid a return of their tariff escalation to triple-digit levels on both sides. Bessent and Greer’s first meeting with He in Geneva in May led to a 90-day truce, which brought down tariffs sharply to about 55% on the US side and 30% on the Chinese side and restarted the flow of magnets. It was extended after subsequent talks in London and Stockholm and was due to expire on November 10.But the truce frayed by September-end, when the US Commerce Department expanded an export blacklist, banning US exports to thousands more Chinese firms.&nbsp;Also Read: <a href="https://www.wionews.com/world/fresh-us-strike-on-venezuelan-gang-s-drug-smuggling-boat-kills-6-narco-terrorists-says-hegseth-1761313089618">Fresh US strike on Venezuelan gang’s drug-smuggling boat kills 6 narco-terrorists, says Hegseth</a>&nbsp;On October 10, China hit back with new global rare earth export controls aiming to prevent their use in military systems.Bessent and Greer blasted China’s move as a “global supply chain power grab” and vowed the US and its allies would not accept the restrictions.&nbsp;On Friday, the Trump administration announced a new tariff probe into China’s “apparent failure” to meet the terms of the 2020 US-China “Phase One” trade agreement that halted their trade war during Trump’s first term.

US Treasury Secretary Scott Bessent met with China’s Vice Premier He Lifeng at Merdeka 118—the world’s second-tallest building—for trade negotiations. China’s top trade negotiator, Li Chenggang, is also participating in the talks.

Top officials from the United States and China claimed to have held “very constructive” talks on Saturday in Kuala Lumpur after the first day of negotiations. The two biggest economies of the world are trying to avert trade war escalation and ensure that a meeting happens next week between US President Donald Trump and Chinese President Xi Jinping on the sidelines of the Association of Southeast Asian Nations summit. Trump had threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1 after China announced massive export controls on rare earth magnets and minerals. The recent flare-up disrupted the trade truce crafted by US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng after four meetings since May. “Today’s talks have concluded. They have been very constructive, and we expect them to resume in the morning,” a US Treasury spokesman told AFP. Also Read: ‘US controlled Pak’s nuclear arsenal, didn’t eliminate AQ Khan due to Saudi pressure’: Former CIA agent US Treasury Secretary Scott Bessent met with China’s Vice Premier He Lifeng at Merdeka 118—the world’s second-tallest building. China’s top trade negotiator, Li Chenggang, is also participating in the talks. The officials will try to pave the way for Trump and Xi to meet next Thursday at an Asia-Pacific Economic Cooperation summit in South Korea, a high-stakes conversation that could revolve around some interim relief on tariffs, technology controls, and Chinese purchases of US soybeans. ‘We have a lot to talk about with President Xi,’ says Trump Minutes before the talks started, Trump left Washington for his tour of Asia and said farmers, hit by a Chinese freeze on US soybean purchases, and the democratic island of Taiwan, which China claims as its own territory, would be on the list of topics for talks. Trump also flagged the release of jailed Hong Kong media tycoon Jimmy Lai, whose arrest is viewed as a high-profile example of China’s crackdown on rights and freedoms in the Asian financial hub. “We have a lot to talk about with President Xi, and he has a lot to talk about with us. I think we’ll have a good meeting,” Trump said. Trump left Washington for a five-day trip to Malaysia, Japan, and South Korea, his first to the region and longest journey abroad since taking office in January. He told reporters aboard Air Force One that he would also like China to help in Washington’s dealings with Russia. Also Read: ‘All is not well with the UN’: Jaishankar slams Pakistan over protecting terror outfit TRF in UNSC Both economic powers trying to avoid escalation The two major economies are trying to avoid a return of their tariff escalation to triple-digit levels on both sides. Bessent and Greer’s first meeting with He in Geneva in May led to a 90-day truce, which brought down tariffs sharply to about 55% on the US side and 30% on the Chinese side and restarted the flow of magnets. It was extended after subsequent talks in London and Stockholm and was due to expire on November 10. But the truce frayed by September-end, when the US Commerce Department expanded an export blacklist, banning US exports to thousands more Chinese firms. Also Read: Fresh US strike on Venezuelan gang’s drug-smuggling boat kills 6 narco-terrorists, says Hegseth On October 10, China hit back with new global rare earth export controls aiming to prevent their use in military systems. Bessent and Greer blasted China’s move as a “global supply chain power grab” and vowed the US and its allies would not accept the restrictions. On Friday, the Trump administration announced a new tariff probe into China’s “apparent failure” to meet the terms of the 2020 US-China “Phase One” trade agreement that halted their trade war during Trump’s first term.

US Treasury Secretary Scott Bessent met with China’s Vice Premier He Lifeng at Merdeka 118—the world’s second-tallest building—for trade negotiations. China’s top trade negotiator, Li Chenggang, is also participating in the talks.

US, China hold ‘constructive talks’ in Malaysia to pave way for Trump-Xi meeting

US President Donald Trump announced an immediate end to all trade talks with Canada, citing an ad that misrepresented former US President Ronald Reagan. Trump accused Ottawa of falsely quoting Reagan in an ad campaign aimed at criticising US tariffs. “The Ronald Reagan Foundation has confirmed that Canada used a fabricated advertisement with Reagan’s voice, making false claims about tariffs,” Trump posted on Truth Social. “This was an attempt to influence the Supreme Court’s decisions and other legal proceedings. Tariffs are crucial for US national security and economic stability. Due to these actions, all trade negotiations with Canada are now terminated.”&nbsp;Also Read: <a href="https://www.wionews.com/world/-i-didn-t-kill-anybody-alabama-man-s-last-words-before-execution-by-nitrogen-gas-for-1993-murder-amid-legal-challenges-1761273080973">'I didn’t kill anybody’: Alabama man’s last words before execution by nitrogen gas for 1993 murder amid legal challenges</a><h2>The controversial ad escalates tensions</h2>In Canada, Ontario launched an anti-tariff campaign featuring an excerpt from a 1987 radio address by Reagan, originally aimed at justifying tariffs on Japanese electronics. The ad warns of the dangers of long-term tariffs, predicting negative consequences like trade wars and economic collapse. The ad aired on networks such as Newsmax and Bloomberg, and Ontario Premier Doug Ford announced a $75 million budget for the campaign, aiming to spread the message across Republican districts in the United States. Ford, a self-proclaimed Reagan admirer, emphasised the importance of this issue for Canada's economic interests.

'All trade negotiations with Canada are terminated': Trump ends talks after dispute over controversial ad featuring Reagan

US President Donald Trump announced an immediate end to all trade talks with Canada, citing an ad that misrepresented former US President Ronald Reagan. Trump accused Ottawa of falsely quoting Reagan in an ad campaign aimed at criticising US tariffs. “The Ronald Reagan Foundation has confirmed that Canada used a fabricated advertisement with Reagan’s voice, making false claims about tariffs,” Trump posted on Truth Social. “This was an attempt to influence the Supreme Court’s decisions and other legal proceedings. Tariffs are crucial for US national security and economic stability. Due to these actions, all trade negotiations with Canada are now terminated.” Also Read: 'I didn’t kill anybody’: Alabama man’s last words before execution by nitrogen gas for 1993 murder amid legal challenges The controversial ad escalates tensions In Canada, Ontario launched an anti-tariff campaign featuring an excerpt from a 1987 radio address by Reagan, originally aimed at justifying tariffs on Japanese electronics. The ad warns of the dangers of long-term tariffs, predicting negative consequences like trade wars and economic collapse. The ad aired on networks such as Newsmax and Bloomberg, and Ontario Premier Doug Ford announced a $75 million budget for the campaign, aiming to spread the message across Republican districts in the United States. Ford, a self-proclaimed Reagan admirer, emphasised the importance of this issue for Canada's economic interests.

US President Donald Trump announced an immediate end to all trade talks with Canada, citing an ad that misrepresented Ronald Reagan. Trump accused Ottawa of falsely quoting Reagan in an ad campaign aimed at criticising US tariffs

United States President Donald Trump said Tuesday (Sep 16) extended the deadline for a ban on TikTok again, this time until December. He also said America and China had reached a deal over TikTok and an ‘American buyer’ will be announced soon. Washington had maintained that ownership of TikTok should be given to the US amid concerns of national security. Earlier, US Treasury Secretary Scott Bessent said that Trump was ready to ‘let TikTok go dark' while negotiating the deal. Speaking to reporters ahead of his UK visit, Trump said that he will reveal everything after speaking to Chinese President Xi Jinping on Friday (Sep 19). "We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up," Trump told reporters.&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-to-extend-china-tariff-deadline-by-90-days-as-us-finalises-framework-tiktok-deal-what-we-know-1757952516763">Trump to extend China tariff deadline by 90 days as US finalises 'framework' TikTok deal? What we know</a>

<blockquote class="twitter-tweet" data-media-max-width="560">&quot;We have a deal on TikTok ... We have a group of very big companies that want to buy it,&quot; says US President Donald Trump <a href="https://t.co/bSoIQq5lub">pic.twitter.com/bSoIQq5lub</a>&mdash; WION (@WIONews) <a href="https://twitter.com/WIONews/status/1967961221912727583?ref_src=twsrc%5Etfw">September 16, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Also Read: <a href="https://www.wionews.com/world/-young-people-will-be-very-happy-trump-gives-big-update-on-us-china-tiktok-deal-here-s-what-he-said-1757940408681">'Young people will be very happy': Trump gives BIG update on US-China TikTok deal - Here's what he said</a><h2>What we know about the TikTok framework agreement so far?</h2>This comes a day after US Treasury Secretary Scott Bessent confirmed that a ‘framework’ agreement had been reached after a second day of talks with Chinese Vice Premier He Lifeng in Madrid, regarding TikTok. He also said that the Wednesday (Sep 17) deadline for the TikTok shutdown has forced the Chinese to reach a potential deal, adding that the deadline could be extended by 90 days again to allow the deal to be finalised. If this is done, this would be the third straight pause for a total of 270 days. While Bessent did not reveal anything else about the meeting, he said that in the final deal “Chinese characteristics” of the app will be preserved as well as America's concerns about “national security” will be addressed. He also said that Trump was ready to ‘let TikTok go dark' while negotiating the deal. It is the second time this year that the two sides have said they were nearing a TikTok deal. The earlier announcement in March ultimately did not pan out.

Also Read: <a href="https://www.wionews.com/world/-we-may-let-it-die-or-trump-hints-tiktok-deal-could-fail-cites-china-as-a-key-factor-1757902458021">'We may let it die, or...': Trump hints TikTok deal could fail, cites China as a key factor</a>

US President Trump announced a deal with China over TikTok, with an American buyer to be named soon. He said full details would follow after his call with President Xi on Sep 19. The US had threatened to shut down TikTok over national security concerns

United States President Donald Trump said Tuesday (Sep 16) extended the deadline for a ban on TikTok again, this time until December. He also said America and China had reached a deal over TikTok and an ‘American buyer’ will be announced soon. Washington had maintained that ownership of TikTok should be given to the US amid concerns of national security. Earlier, US Treasury Secretary Scott Bessent said that Trump was ready to ‘let TikTok go dark' while negotiating the deal. Speaking to reporters ahead of his UK visit, Trump said that he will reveal everything after speaking to Chinese President Xi Jinping on Friday (Sep 19). "We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up," Trump told reporters. Also Read: Trump to extend China tariff deadline by 90 days as US finalises 'framework' TikTok deal? What we know

US President Trump announced a deal with China over TikTok, with an American buyer to be named soon. He said full details would follow after his call with President Xi on Sep 19. The US had threatened to shut down TikTok over national security concerns

'We have a deal': Trump extends TikTok deadline till Dec 16, hints at new US owner

Chinese investors are increasingly funnelling capital into Indonesia to sidestep high US tariffs on Chinese goods, with inflows from China and Hong Kong rising 6.5 per cent year-on-year to $8.2 billion in the first half of 2025. The shift comes as the US maintains tariff rates exceeding 30 per cent on Chinese imports, while Indonesian exports face a comparatively lower 19 per cent rate, on par with Malaysia, Thailand, and the Philippines, and just below Vietnam’s 20 per cent.Reuters&nbsp;reported that Jakarta-based Gao Xiaoyu, founder of PT Yard Zeal Indonesia, has seen a surge in calls from Chinese enterprises eager to establish operations in the country. “We have meetings from morning till night,” Gao said, noting that demand for industrial real estate has pushed up warehouse and property prices by 15 per cent to 25 per cent year-on-year in Q1 2025, marking the fastest rise in two decades.West Java’s sprawling Subang Smartpolitan industrial park has been inundated with enquiries from Chinese manufacturers, ranging from toy makers and textile firms to electric vehicle producers. The province’s proximity to the Patimban deep-sea port is a key draw for investors seeking quick market access.<h2>Economic growth and market potential draw foreign capital</h2>Indonesia, Southeast Asia’s largest economy and the world’s fourth most populous nation, expanded by 5.12 per cent in the second quarter, the fastest pace in nearly two years, fuelled by robust household spending, which accounts for over half of GDP. For Chinese firms, Indonesia offers not only a production base but also a consumer market of more than 270 million people.“If you can establish a strong business presence in Indonesia, you’ve essentially captured half of the Southeast Asian market,” said Zhang Chao, a Chinese motorcycle headlight manufacturer who has seen profit margins in Indonesia reach 20-30 per cent, compared to as low as 3 per cent in China.Mira Arifin, Indonesia country head at Bank of America, cited the country’s young, skilled workforce and favourable demographics as factors encouraging rapid scale-up by foreign investors.<h2>Opportunities tempered by structural and geopolitical risks</h2>Despite the optimism, significant hurdles remain. Investors point to Indonesia’s bureaucratic red tape, incomplete industrial supply chains, and infrastructure gaps. There are also domestic concerns about the over-reliance on Chinese investment in strategic sectors such as nickel, where China controls around 75 per cent of smelting capacity. President Prabowo Subianto has strengthened ties with Beijing, meeting Chinese President Xi Jinping in November 2024 and hosting Premier Li Qiang in May. However, his recent trip to Washington underscores Jakarta’s balancing act between China and the US.The global trade environment remains volatile. Although Washington and Beijing have extended a 90-day tariff pause, uncertainty persists, with US President Donald Trump threatening to double tariffs on Indian exports. Analysts warn that global supply chains are undergoing significant realignment, with Indonesia emerging as a prime beneficiary, provided it can address regulatory and logistical constraints. As Chinese firms race to secure land and facilities, Indonesia’s challenge will be to convert this wave of interest into sustainable, long-term economic gains without compromising strategic autonomy.&nbsp;(With inputs from agencies)

The shift in Chinese investors comes as the US maintains tariff rates exceeding 30 per cent on Chinese imports, while Indonesian exports face a comparatively lower 19 per cent rate, on par with Malaysia, Thailand, and the Philippines, and just below Vietnam’s 20 per cent.

Chinese investors are increasingly funnelling capital into Indonesia to sidestep high US tariffs on Chinese goods, with inflows from China and Hong Kong rising 6.5 per cent year-on-year to $8.2 billion in the first half of 2025. The shift comes as the US maintains tariff rates exceeding 30 per cent on Chinese imports, while Indonesian exports face a comparatively lower 19 per cent rate, on par with Malaysia, Thailand, and the Philippines, and just below Vietnam’s 20 per cent. Reuters reported that Jakarta-based Gao Xiaoyu, founder of PT Yard Zeal Indonesia, has seen a surge in calls from Chinese enterprises eager to establish operations in the country. “We have meetings from morning till night,” Gao said, noting that demand for industrial real estate has pushed up warehouse and property prices by 15 per cent to 25 per cent year-on-year in Q1 2025, marking the fastest rise in two decades. West Java’s sprawling Subang Smartpolitan industrial park has been inundated with enquiries from Chinese manufacturers, ranging from toy makers and textile firms to electric vehicle producers. The province’s proximity to the Patimban deep-sea port is a key draw for investors seeking quick market access. Economic growth and market potential draw foreign capital Indonesia, Southeast Asia’s largest economy and the world’s fourth most populous nation, expanded by 5.12 per cent in the second quarter, the fastest pace in nearly two years, fuelled by robust household spending, which accounts for over half of GDP. For Chinese firms, Indonesia offers not only a production base but also a consumer market of more than 270 million people. “If you can establish a strong business presence in Indonesia, you’ve essentially captured half of the Southeast Asian market,” said Zhang Chao, a Chinese motorcycle headlight manufacturer who has seen profit margins in Indonesia reach 20-30 per cent, compared to as low as 3 per cent in China. Mira Arifin, Indonesia country head at Bank of America, cited the country’s young, skilled workforce and favourable demographics as factors encouraging rapid scale-up by foreign investors. Opportunities tempered by structural and geopolitical risks Despite the optimism, significant hurdles remain. Investors point to Indonesia’s bureaucratic red tape, incomplete industrial supply chains, and infrastructure gaps. There are also domestic concerns about the over-reliance on Chinese investment in strategic sectors such as nickel, where China controls around 75 per cent of smelting capacity. President Prabowo Subianto has strengthened ties with Beijing, meeting Chinese President Xi Jinping in November 2024 and hosting Premier Li Qiang in May. However, his recent trip to Washington underscores Jakarta’s balancing act between China and the US. The global trade environment remains volatile. Although Washington and Beijing have extended a 90-day tariff pause, uncertainty persists, with US President Donald Trump threatening to double tariffs on Indian exports. Analysts warn that global supply chains are undergoing significant realignment, with Indonesia emerging as a prime beneficiary, provided it can address regulatory and logistical constraints. As Chinese firms race to secure land and facilities, Indonesia’s challenge will be to convert this wave of interest into sustainable, long-term economic gains without compromising strategic autonomy. (With inputs from agencies)

The shift in Chinese investors comes as the US maintains tariff rates exceeding 30 per cent on Chinese imports, while Indonesian exports face a comparatively lower 19 per cent rate, on par with Malaysia, Thailand, and the Philippines, and just below Vietnam’s 20 per cent.

Chinese investors pivot to Indonesia amid escalating US-China trade tensions

China's exports surged by 8.1 per cent year-on-year in April, surpassing economists&rsquo; expectations of a modest 2 per cent growth.
The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China&rsquo;s economy.
Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent&mdash;with cumulative duties on some goods soaring to a whopping 245 per cent.
Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US.
Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China&rsquo;s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China&rsquo;s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent.
The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships.
China&rsquo;s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March.
&nbsp;
<h2 dir="ltr">The upcoming trade talks</h2>
The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war.
The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March.
While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation.
&nbsp;
<h2 dir="ltr">Broader impact on the Chinese economy</h2>
Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs.
In April, China&rsquo;s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022.
There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs&mdash;about 2 per cent of its workforce&mdash;in sectors tied to US-bound goods.
The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave.
To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

Business & Economy: China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth.

China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth. The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China’s economy. Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent—with cumulative duties on some goods soaring to a whopping 245 per cent. Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US. Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China’s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China’s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent. The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships. China’s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March. The upcoming trade talks The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war. The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March. While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation. Broader impact on the Chinese economy Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs. In April, China’s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022. There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs—about 2 per cent of its workforce—in sectors tied to US-bound goods. The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave. To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

China's exports surge amid decline in shipments to the US as trade war intensifies

By raising tariffs on Chinese products, the United States will harm the interests of its businesses and consumers in the long term, according to Chinese economic experts at a seminar on China-US trade in Beijing on Sunday.

US raising tariffs will harm American businesses, consumers: Chinese experts