Xi Jinping's defiance against Donald Trump paid off for China: Report
The US and China announced their decision to lower tariffs on each other's products for a period of 90 days, proving that Xi Jinping's firm stance against Donald Trump turned out to be beneficial for the former's country. Following two days of high-level talks in Switzerland's Geneva, a joint statement said that the combined US levies of 145 per cent on most Chinese imports will be reduced by 30 per cent while China's duties on American goods will drop to 10 per cent.
During the discussions, the United States ended up meeting all of China's core demands. The elevated "reciprocal" tariff, which Trump set up for China at 34 per cent on April 2, has been suspended, leaving Beijing with the same 10 per cent levy that applies to the UK, reported Bloomberg.
The deal provided some much-needed relief for American markets as well as for Trump as the dollar and stocks went soaring, while Chinese equities also saw an uptick.
At the talks in Geneva, the two sides agreed to take "aggressive actions" to curb the flow of fentanyl, which could subsequently result in the elimination of the extra 20 per cent tariff.
Chinese President Xi Jinping maintained his stance against the US despite Trump raising their tariffs to the highest level in any country. He refused to get on a call with Trump in contrast to other world leaders and stood his ground.
Beijing reportedly instead opted to cut key interest rates and other measures to protect China's economy, while also sending out diplomats around the world to lock in fresh markets for Chinese products and slam America's "bullying".
While economic difficulties did indeed strike China amid the rising US tariffs, nationalist spirit back home encouraged Xi to not give in to American coercion. Trump, on the other hand, faced immense pressure from market players and business lobbies.
Trey McArver, co-founder of research firm Trivium China, said, "This is arguably the best outcome that China could have hoped for; the US backed down."
"Going forward, this will make the Chinese side confident that they have leverage over the US in any negotiations," McArver was quoted as saying by Bloomberg.
Meanwhile, Gerard DiPippo, associate director of the RAND China Research Centre, said the lesson out of this trade talk is that "economic power matters".
"For Beijing, it's a strategic vindication, and one that makes Xi's focus on manufacturing and self-reliance harder to argue against, at least from an economic security perspective," DiPippo added.
The Trump administration's retreat from sky-high tariffs wouldn't have occurred if China hadn't responded so forcefully, not only with retaliatory duties but also export controls and other steps, according to Scott Kennedy, a China expert at the Washington-based Center for Strategic and International Studies.
'This will strengthen Xi's political standing at home and his diplomatic standing internationally,' Kennedy said. 'He's the big winner from this round of the conflict.'
On Monday, the US President said that he could speak to Xi as soon as the end of this week, touting a "total reset" in Washington's relations with China. However, he said that the trade deal does not include the sectoral tariffs on cars, steel, aluminium, and possibly pharmaceuticals.
At a briefing, Trump said that the "relationship is very good" with China, adding that America is not looking to hurt Beijing. "China was being hurt badly. They were closing up factories. They were having a lot of unrest, and they were very happy to be able to do something with us," the US President added.
With the tariff war between the US and China on a halt for 90 days, Beijing now has a three-month time to strike a wider deal with Washington to rebalance trade and safeguard its own interests as well.
China's white paper on national security, as cited by the state-run Xinhua news agency, said that it is committed to the stable development of relations with the US. However, it added that imposing pressure and threats is not the right way to deal with China.
With Bloomberg inputs
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
39 minutes ago
- Time of India
UK's Long Harbour proposes $852 million bid for PRS REIT
BENGALURU: UK property investor Long Harbour has made a 631.6 million pound ($852 million) takeover proposal for Britain's PRS REIT at below the market price, sending PRS REIT shares down around 2% on Wednesday. PRS, a real-estate investment trust that has put itself up for sale, said London-based Long Harbour was proposing to offer 115 pence per share in cash, a 3.3% discount to PRS' closing price of 118.8 pence on Tuesday. The shares hit a record high of 125 pence earlier in the day after Sky News reported the possible offer and said Long Harbour had secured financing to launch a 700 million pound bid. A deal could add to a flurry of recent transactions within the UK-listed REIT industry, and underscore the growing appetite among players to bolster operations against an uncertain economic backdrop. "Intra-REIT M&A ... makes fewer, larger and more investable stocks, so less is more," Jefferies analysts said in a note on Tuesday. Last week, Unite Group proposed to buy Empiric Student Property for about $976 million, while Warehouse REIT agreed to be bought by investment firm Blackstone for $635 million. LondonMetric agreed to buy Urban Logistics for $925 million in May. PRS, which focuses on family homes in the private rented sector, said in February it had received several proposals from unidentified parties. The company said on Wednesday it expected to provide an update on its sale process by the end of June. The process followed the launch of a strategic review in October after PRS replaced two board members, including its then chair, in agreement with a group of shareholders who had demanded these changes.
India Today
an hour ago
- India Today
Trump won't allow mob rule in America, says White House amid LA unrest
US President Donald Trump 'will never allow mob rule to prevail in America,' the White House said on Wednesday, following escalating protests in Los Angeles sparked by the administration's aggressive immigration enforcement House Press Secretary Karoline Leavitt, speaking at a press briefing, said President Trump remains firmly committed to upholding law and order in the face of what she described as organized unrest. 'The most basic duty of government is to preserve law and order, and this administration embraces that sacred responsibility,' she said, as images of burning vehicles and masked demonstrators were displayed during the unrest follows a series of Immigration and Customs Enforcement (ICE) raids carried out in Los Angeles last week, a city governed by Democrats, which has long opposed Trump's immigration agenda. Though many protests were peaceful, several incidents of violence, including the torching of self-driving taxis and clashes with police, prompted a militarized gas and other non-lethal methods were deployed, and President Trump authorized the National Guard to intervene, a rare move in recent Gavin Newsom and Los Angeles Mayor Karen Bass sharply criticized the deployment, calling it excessive and politically motivated. In response, Leavitt accused both leaders of dereliction of duty. 'Governor Gavin Newsom and Mayor Karen Bass shamefully failed to meet their sworn obligations to their citizens,' she said, also alleging that Newsom had 'fanned the flames and demonized our brave ICE officers.'advertisementPresident Trump, speaking Tuesday at Fort Bragg military base, promised to 'liberate' Los Angeles, intensifying tensions with California's Democratic administration has also raised concerns about the organization behind the protests. Trump referred to some demonstrators as 'paid insurrectionists' equipped with professional anti-riot gear, a claim Leavitt said is under investigation. 'It's a good question the president is raising, and one we are looking into, about who is funding these insurrectionists,' she told news agency backlash is intensifying as the fast-growing 'No Kings' protest movement prepares for a massive, coordinated demonstration on June 14, coinciding with both a pro-Trump parade in Washington, DC, and the president's 79th birthday. Organizers estimate that nearly 3 million people could flood streets in cities across the country in what they describe as a unified stand against response, the White House remains defiant. 'President Trump will never allow mobs to take over the United States,' Press Secretary Karoline Leavitt said, signaling no intention to yield to mounting public inputs from agenciesTune InMust Watch
Hindustan Times
an hour ago
- Hindustan Times
Pete Hegseth confirmed Iran working towards nuclear weapon, claims US senator
US senator from Arkansas Tom Cotton on Thursday claimed that defence secretary Pete Hegseth had confirmed that Iran was working towards building a nuclear weapon amid a stalled nuclear deal between the countries. In a post on X, Tom Cotton said, 'Today @SecDef confirmed that Iran's terrorist regime is actively working towards a nuclear weapon. For the sake of our national security, the security of our allies, and millions of civilians in the region this cannot be allowed to happen.' Also Read: Israel preparing strike on Iran's nuclear facilities, suggests US intelligence: Report The US and Iran have been negotiating a nuclear deal for around two months, with Oman mediating. They have held five rounds of talks. US President Donald Trump, after being elected for his second term, had said he wants a deal that curbs Iran's atomic activities and that the US could strike Iran if the talks break down. Also Read: Trump travel ban shows 'deep hostility' towards Iranians, Muslims, says Iran Israel, which believes a nuclear-armed Iran would pose an existential threat has also threatened to attack Tehran, with or without US help. Iran has long denied having plans to build a nuclear weapon, although it has been enriching uranium to a higher point than required for civilian purposes, leading to wariness from the US and other western countries. Earlier this week, Trump said he was "much less confident of a deal being made. 'They seem to be delaying, and I think that's a shame," he told the New York Post. Also Read: A thaw in Iran-Canada ties? Tehran says 'ready for talks' to restart relations Iran has warned of retaliation against US military assets in the Middle East if the talks collapse and the Islamic Republic is attacked. 'I sincerely hope it won't come to that and that the talks reach a resolution,' Iran's Defense Minister Aziz Nasirzadeh said. 'But if they don't, and conflict is imposed on us, the other side will undoubtedly suffer greater losses. We will target all US bases in host countries without hesitation," he added.
