US-China Trade War

Battles lines drawn between the world's two largest economies
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Background and explainers on the trade war between China, led by President Xi Jinping, and the United States, and its President Donald Trump. Having started in July 2018, the prolonged conflict reached a turning point in January 2020 with the signing of the phase one trade deal, but not after it had weighed heavily on the global economy for 18 months due to additional import tariffs levied by both China and the US. The US has accused China of unfair trading practices, including intellectual property theft, forced technology transfer, lack of market access for American companies in China and creating an unlevel playing field through state subsidies of Chinese companies. China, meanwhile, believes the US is trying to restrict its rise as a global economic power.

Latest News
News
US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent speak in Geneva. Photo: EPA-EFE
Daily Pulse|US-China trade war cools down
China and the US slashed reciprocal tariffs for 90 days following talks in Geneva, curtailing a trade war that had threatened to upend the global economy.
Senior officials from the United States and China met in Switzerland over the weekend to discuss a deal to de-escalate the ongoing trade war between the world’s two largest economies. Photo: Reuters
Global Economy
China, US reduce majority of tariffs after first round of trade talks
Beijing and Washington agreed to remove most tariffs imposed since April’s ‘Liberation Day’ package following two days of negotiations.
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US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer talk to the media on Sunday following talks with China in Geneva, Switzerland. Photo: Reuters
Economy
Watch: US Treasury chief Scott Bessent holds press briefing on trade talks
Two days of talks described as ‘constructive’ by China’s Vice-Premier He Lifeng earlier.
Vice-Premier He Lifeng speaks at a press briefing on Sunday following a high-level meeting with US representatives on economic and trade affairs in Geneva, Switzerland. Photo: Xinhua
Global Economy
US-China trade talks seen as politically symbolic, but is outcome a real ‘deal’?
With Beijing and Washington framing trade discussions in positive light, analysts say the stage may be set for a partial reduction in tariffs in weeks and months to come.
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An electric car charging station. Despite possessing some 6.9 million tonnes of rare earth reserves, India remains reliant on Chinese imports. Photo: Shutterstock
Economics
India’s EV drive risks stalling as China tightens grip on rare earth exports
Experts have urged India to explore innovative solutions to skirt the curbs, from e-waste recycling to extracting rare earths from oil wells.
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China’s offshore yuan has appreciated in value after progress was reported in trade talks with the US. Photo: AFP
China Economy
Offshore yuan gets a lift as market awaits outcome of US-China trade talks
With both China and the US reporting ‘progress’ in their first trade talks, the offshore yuan had strengthened to 7.22 per US dollar by Monday.
Illustration: Henry Wong
Global Economy
As unswerving superpowers meet unsustainable tariffs, Yao Yang breaks down the paradox
From the US-China trade war to China’s economic outlook for the months ahead, the economist and academic – known for his hot takes – talks policy and strategy.
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Members of the Chinese delegation leave a residence where trade talks between the US and China are taking place, in Geneva on Saturday. Photo: Reuters
Diplomacy
US-China agree to ‘trade consultation mechanism’, conduct further talks: He Lifeng
China is ready to work with the US to manage differences and make the ‘pie of cooperation bigger’, state media quotes vice-premier as saying.
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Hong Kong and Macau Affairs Office Director Xia Baolong (second left) and city leader Sam Hou-fai (left) inspect a site earmarked for development. Photo: Handout
Politics
Beijing’s point man on Macau affairs calls on city to ‘stand firm’ amid trade war
Xia Baolong also stresses need to explore new markets in meeting with city’s chief executive and local members of national governing bodies.
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People look at the Iphone 16 at an Apple store in Shanghai on April 11, 2025. US President Donald Trump abruptly paused tariffs on most countries, sparking euphoria on global markets on April 10, but upped the ante on a brutal trade war with superpower rival China. Photo: AFP
World Opinion
Opinion|US and China’s economic goals are complementary but will they cooperate?
One consumes too much, produces too little. The other produces too much, consumes too little. What if each could solve the other’s problem?
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Countries are looking to Hong Kong as an example of attracting foreign investment, finance chief Paul Chan says. Photo: Eugene Lee
Hong Kong Economy
Hong Kong will ‘play it safe’ with growth figures amid US tariff war: Paul Chan
US tariffs have huge impact, with ‘major uncertainties over the economic outlook’, Financial Secretary Paul Chan says.
Employees work on the assembly line inside a Sany factory in Zhejiang province in April 2023. Photo: Getty Images
Banking & Finance
Heavy equipment maker Sany to expand overseas after Hong Kong IPO
Aiming to raise up to US$1.5 billion in its proposed listing, company eyes lucrative overseas sales amid weak demand at home.
Temu, owned by PDD Holdings, is urging Chinese merchants to consider alternative overseas markets amid a US-China trade war. Photo: Shutterstock
Big Tech
Temu points Chinese sellers to new markets amid US tariff woes
US tariffs are prompting Chinese merchants to seek alternative markets, but some sellers remain hopeful that the worst is soon behind them.
Illustration: Henry Wong
Military
Rare earths aren’t rare, so why is the US worried about China’s export curbs?
As costs of Trump’s trade war rise, critical mineral curbs by China and supply chain gaps could disrupt US military programmes, experts say.
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European sources say the US trade deal with Britain shows that US President Donald Trump wants to ensure American allies will cut China out of important supply chains. Photo: Reuters
Diplomacy
China is the ‘elephant in the room’ as EU scrutinises US trade deal with Britain
European officials are studying the agreement for signs of how Trump might cajole them into adopting tougher policies on China.
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US President Donald Trump has proposed a 100 per cent tariff on films made outside the country, a move that has prompted confusion and alarm in the entertainment industry. Photo: Reuters
Global Economy
Will Trump’s film tariffs mean lights, camera, inaction for the world’s studios?
While it is unclear how film tariffs would be enforced, suggestion of new duties on non-US productions has put industry in panic mode.
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Charles Michel, president of the European Council from 2019 to 2024, says tensions could arise out of the EU and China’s different traditions, cultures and political systems but “stability and predictability is in everyone’s interests”. Photo: AFP
Diplomacy
Why EU-China stability is key in a world order ‘under constant attack’
Former top European official Charles Michel says there is room for Brussels to work with Beijing in various areas.
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Striking Hollywood writers picket outside Paramount Studios in 2023. Photo: AFP
Entertainment
How far has Hollywood fallen? Entry-level screenwriter jobs dry up
‘It shouldn’t be this hard’ for rookie screenwriters to get work in Hollywood, where effects of pandemic, actor and writer strikes linger.
Highly anticipated trade talks between the US and China are taking place in Switzerland over the weekend. Photo: Shutterstock
Global Economy
Trump calls day one of crunch talks in Geneva ‘a very good meeting’
Analysts predict a wide range of outcomes for the first round of US-China dialogue, from a ‘soft deal’ to a mutually acrimonious departure.
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Police officers stand guard on Shanghai’s Nanjing Road on Monday. A top security official has ordered China’s law enforcement agencies to swear “absolute loyalty” to the Communist Party. Photo: Reuters
Politics
China’s security system urged to handle duties with ‘passion’ as pressures mount
As external tensions weigh on China’s internal stability, security chiefs warn against ‘inadequacies’ in law enforcement and justice system.
Shoppers browse an international duty-free mall in Sanya, Hainan province. The island’s duty-free stores are expected to attract more customers amid the trade war with the United States. Photo: Xinhua
China Economy
The duty-free island trying to lure Chinese shoppers amid the trade war
Hainan, a tropical island in southern China, has special customs policies allowing shops to maintain low prices even amid sky-high tariffs.
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Illustration: Brian Wang
Banking & Finance
China dumping US Treasuries would be the nuclear option, economist says
Mutual trust between Washington and Beijing has deteriorated considerably, but a complete severing of ties is highly unlikely, economists say.
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Illustration: Lau Ka-kuen
Diplomacy
Yalta 2.0? Why Trump, Xi and Putin didn’t meet to carve up the world
The US president’s tariff war and his Ukraine policy are advancing China’s and Russia’s visions of a multipolar international order.
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US Treasury Secretary Scott Bessent awaits a meeting between Switzerland and the United States in Geneva, Switzerland, on Friday. Photo: Handout via Reuters
Diplomacy
US-China trade talks in Switzerland unlikely to yield breakthrough: analysts
Instead, top officials are expected to focus on frameworks, minutiae and setting boundaries with an agreement merely to meet again.
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Chinese President Xi Jinping (left) and Russian President Vladimir Putin have put on a united front in Moscow this week. Photo: AP
Diplomacy
United in Moscow, China and Russia spurn talk of a Trump ‘reverse Nixon’
The presidents of the two countries take aim at the US and its allies, accusing them of undermining peace and stability.
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Shipping containers are stacked at a port in Shanghai on Friday. Photo: AFP
China Economy
Will US-UK deal improve America’s position in trade talks with China?
The first deal in Donald Trump’s trade war may carry symbolic value, but analysts said it would have a limited effect in talks with China.
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US President Donald Trump announces a trade deal with Britain in the Oval Office of the White House in Washington on Thursday. Photo: Reuters
Diplomacy
Trump says 80% tariff on China imports ‘seems right’ ahead of high-level talks
Decision is ‘up to’ US Treasury Secretary Scott Bessent, American president adds, without elaborating.
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Opinion
Macroscope|World will need to borrow its way out of Trump’s tariff mess
The US president’s trade wars could push the mountain of global debt to the point of eruption and harm emerging economies.
Anthony Rowley
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Editorial|Talks in Russia send message to US ahead of key China meeting
Beijing refuses to be bullied in the eagerly awaited negotiations and has pledged with Moscow to defend multilateralism and oppose hegemony.
SCMP Editorial
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Outside In|Trump’s ‘make Hollywood great again’ script may not have a happy ending
The US president has proposed a 100 per cent tariff on films made abroad, but this is hardly what the entertainment industry needs.
David Dodwell
My Take|Facing US tariffs, Asia can transform to lead the world in innovation
Asia should move beyond its low-cost assembly model and scale up the value chain, such as in green technology.
Biman Mukherji
Macroscope|There’s more to Taiwan’s currency shock than meets the eye
The surge in the New Taiwan dollar has exposed how trade policy, capital flows, geopolitics and sovereign risk have become closely intertwined.
Nicholas Spiro
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Asian Angle|Trump’s tariffs: can Thailand escape the US trade trap after 90 days?
Thailand is seeking to boost imports from the US to address the challenges of Trump’s tariffs, but this is unlikely to improve its economic position.
Wannaphong Durongkaveroj
Asian Angle|The end of ‘Chimerica’ and what that means for Southeast Asia
The breakdown of US-China economic symbiosis leaves Southeast Asian nations bracing for unpredictable shocks.
John Z. Lee
My Take|Forget Mao, Clausewitz is a better guide to the real US-Chinese trade war
Trade wars, like real wars, are an implicit bargaining tool before the start of formal negotiations.
SCMP ColumnistAlex Lo
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Macroscope|Trump’s tariffs are waking Asia up from the dream of export-led growth
Asian economies responded to Western exhortations to pursue export-led growth. The resulting ‘economic miracle’ now looks like a mistake.
Anthony Rowley
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Outside In|Uncertainty unleashed by Trump 2.0 will exact a high price
Companies and countries alike are seeing hedging costs hit the roof amid a loss of trust and certainty in the US, the dollar and Treasuries.
David Dodwell
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My Take|Why China’s ‘Never Kneel Down’ video fails to change US trade war narrative
China’s ‘Never Kneel Down’ video employs nationalistic rhetoric to resonate with a Chinese audience, but is unlikely to influence the global narrative on tariffs.
Maria Siow
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Opinion|The US is fixated on ‘beating China’. It needs to stop beating itself
A bill introduced five years ago epitomises the emotion, chaos and inconsistency with which Washington approaches its ‘China anxiety’.
SCMP ColumnistChow Chung-yan
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