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String-attached deals will meet response

By LI YANG | China Daily | Updated: 2025-07-04 00:00
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With the July 9 deadline for the 90-day postponement of the United States' "reciprocal" tariffs looming, the US administration has accelerated its trade talks with relevant economies.

It is no secret that some economies are trying to play the "China card" in their tariff negotiations with the US to strive for a lower rate.

According to reports, the trade deals the US is looking to reach with some economies will include restrictions on China or ensure that the other party commits to following the US in confronting China in the trade field.

For instance, according to a Bloomberg report, the US-Vietnam trade deal, that the US leader claimed has been reached, contains special terms that will hit products that contain parts from China and some other countries, which are shipped through Vietnam or simply assembled there before being exported to the US.

Such terms are modeled on similar provisions in the US' existing trade agreements with Mexico and Canada. Another country that is believed to be close to reaching a deal with the US, India, has also been reportedly negotiating "rules of origin" targeting China.

Beijing has made it clear that it firmly opposes any party reaching a deal at the expense of China's interests in exchange for so-called tariff reductions. If such a situation occurs, it will never accept it and will resolutely take countermeasures to safeguard its legitimate rights and interests.

A spokeswoman of the Commerce Ministry reiterated that stance in a news conference on Thursday while answering a question on the deal between the US and Vietnam.

"China has noted the relevant situation and is conducting an assessment. The Chinese side believes equal consultation is the proper way to settle trade disputes, but it firmly opposes any party reaching a deal at the expense of China's interests," she said.

In stipulating these conditions, the US has put its trading partners, particularly those in Asia, in a very difficult situation. These economies rely on US demand while relying on China for raw materials, parts, equipment and technology. For these Asian economies, China is a larger trading partner than the US.

The pressure is not limited to Asia, with Europe also finding itself being coerced in the same way. It is not impossible that the European Union could sign similar terms to those in the UK-US deal, which included commitments around supply chain security, export controls and ownership rules in industries such as steel, aluminum and pharmaceuticals that might affect China's trade with the United Kingdom.

Yet there does seem to be a silver lining emerging. Another Bloomberg report indicates the US Department of Commerce has informed German company Siemens that it no longer needs to obtain a "government license" to export chip design software to China, which is said to be a part of the US' move to implement the outcomes of its trade talks with China in London and Geneva.

Likewise, China has been moving to implement the agreement by accelerating the review of rare earth-related export license applications in accordance with relevant laws and regulations, the Commerce Ministry said last month.

China has approved a certain number of compliant applications in accordance with the law and will continue to strengthen the review and approval of such applications. It is willing to enhance communication and dialogue with relevant countries on export controls and actively promote the facilitation of compliant trade.

"I am confident now... the magnets will flow," US Treasury Secretary Scott Bessent told the media late last month. "This is a de-escalation."

That said, there is no doubt the trade talks between the US and other economies, including China, are at a critical juncture. It is to be hoped that the US and China will work to meet each other halfway to jointly promote the healthy, stable and sustainable development of China-US economic and trade relations.

- Li Yang, China Daily

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