Call on Trade and Economic Relations

BEIJING (Reuters) – Chinese Commerce Minister Wang Wentao and his U.S. counterpart will hold a call in the near future regarding trade and economic ties, as reported by China’s state-run Xinhua news agency on Tuesday, citing sources familiar with the matter.

Key Discussion Areas

They are expected to exchange views on bilateral economic and trade relations and key issues of mutual concern, particularly restrictions on electric vehicles (EVs).

Background Concerns

During a two-day working group meeting in Beijing last month with a U.S. delegation, Chinese officials raised “grave” concerns about additional U.S. tariffs, investment restrictions, and Russia-related sanctions.

A new round of U.S. tariffs on $18 billion worth of Chinese goods—including EVs, EV batteries, and solar panels—was implemented in late September, significantly impacting lithium-ion batteries. Currently, the U.S. imports nearly no Chinese EVs.

These tariffs emerged from a review by the Office of the U.S. Trade Representative of tariffs initially imposed by former President Donald Trump in 2018. The Biden administration asserted these tariffs aim to protect strategic domestic industries from China’s excessive production capacity. Beijing has threatened retaliation.

China’s Perspective

China has long accused the United States of hindering its economic growth and technological advancement due to what it views as paranoia. However, Beijing has kept the door open for talks, especially with the possibility of Trump returning to the presidency.

Trump has mentioned he might impose new tariffs of 60% or more on Chinese goods if re-elected in November.

Diplomatic Remarks

Xie Feng, China’s ambassador to the United States, stated, “In state-to-state relations, the No.1 and overarching question is: are we rivals, or partners?” He emphasized that “China’s success does not have to mean a failure of the United States.”

EU Relations

China’s relations with the European Union have also soured, as Brussels accuses Beijing of unfairly flooding the European market with EVs supported by industrial policies and subsidies. The EU is set to vote on implementing definitive levies on Chinese-made EVs this month.