Beijing’s Defiant Stand
China has bluntly demanded the immediate revocation of all U.S. tariffs while denying any ongoing negotiations, signaling a hardening stance in the protracted trade war. Commerce Ministry spokesman He Yadong dismissed speculation of backchannel talks, stating: “Unilateral U.S. trade bullying must end before dialogue can begin.”
Key Developments
No Compromise: China rejects “piecemeal solutions” to $550B tariff battle.
Tech War Front: New export controls on gallium & germanium take effect August 1.
WTO Gambit: Beijing files fresh complaint over CHIPS Act subsidies.
Why This Matters Now
Biden-Xi Thaw Falters: Comes weeks after supposed “stabilization” talks.
Global Ripple Effect: EU manufacturers report 30% component shortages.
Corporate Exodus: 400+ foreign firms quietly shifting supply chains from China.
China’s Retaliation Toolkit
• Rare Earth Squeeze: 70% production cut in magnet-critical dysprosium.
• Dollar Diversion: Petro-yuan deals with Gulf states accelerated.
• Domestic Stimulus: $72B package for tariff-hit exporters.
U.S. Countermoves
– Treasury preparing new investment curbs on AI/quantum sectors.
– Pentagon stockpiling 5 years’ worth of Chinese-made drones.
– Bipartisan bill to revoke China’s “developing nation” WTO status.
By The Numbers
▸ $1.2T: Bilateral trade at stake.
▸ 25%: Average U.S. tariff on $370B Chinese goods.
▸ 0: Progress meetings since balloon crisis.
What’s Next
1. August 1: China’s chip metal controls bite.
2. September: Expected U.S. TikTok ban decision.
3. Q4: Make-or-break APEC summit chance.
The world’s largest trade divorce just got messier—with no mediators in sight.
