China’s Lead Diplomat Challenges US Trade Tactics In Tense Climate

American and Chinese flags on a conference table.

China’s foreign minister has openly criticized a major power, likely the United States, for using aggressive trade tactics by employing tariffs as a tool of coercion.

Quick Takes

China’s Foreign Minister criticized the belief that “might makes right” in international trade.
A 90-day pause on tariffs between the US and China is now in place.
Negotiations in Geneva, facilitated by Switzerland, aimed to address trade discrepancies.
President Trump has shown willingness to reduce tariffs significantly.

Diplomatic Strain Between the US and China

The recent pause on tariffs between the United States and China is significant, as it could help alleviate potential shortages of goods in both nations. The announcement comes amidst ongoing trade tensions, as China’s Foreign Minister criticized a “certain major power” for employing a might-makes-right strategy globally.

The US and China announced the temporary suspension of tariffs for 90 days. This development is crucial for American companies and consumers who were bracing for potential shortages. The negotiations in Geneva were facilitated by the Swiss government and intended to address the ongoing trade deficit between the two countries.

China Stands Firm Amid Trade Tensions#Chinese Vice Foreign Minister Hua #Chunying says China is "fully capable and confident" in facing U.S. trade challenges, asserting Washington’s current policies are unsustainable.

Ahead of bilateral talks in #Geneva, Hua declares, “If we… pic.twitter.com/PTSe7PBobK

— Briefing Block (@briefing_block_) May 10, 2025

Challenges of Economic Strategies

President Trump’s economic strategies, which include tariffs, tax cuts, and deregulation, have been criticized for being inconsistent. While the tariffs aim to balance trade outcomes, they contradict efforts to promote growth via tax cuts, which potentially increase demand and imports, including Chinese goods.

“It’s a little strange. If you’re working a pro-growth agenda, if that’s what you want, you’re not as worried about other things, you’re really worried about growth, tariffs are not pro-growth. So the tariff part of it doesn’t make sense. If you’re working to balance trade outcomes, then the tariffs make sense, but now your tax cut is actually going to boost the U.S. trade deficit, right? We’re going to boost demand. We’re going to increase growth in the country, which a lot of people would say is a good thing. That’s going to boost imports, including Chinese imports. So they don’t mix well together. It’s as if the administration has two different economic strategies at the same time and just jumps back and forth from one to the other whenever it’s convenient,” said Derek Scissors of the American Enterprise Institute.

In addition to the United States, China’s foreign minister expressed disapproval of the method of using tariffs as weapons for coercion by major powers. Wang Yi, representing China’s stance, advocated for upholding legitimate and lawful rights in international relations without resorting to domination.

China Agrees to Resume Trade Talks with U.S. in Switzerland as Treasury Chief Admits Tariff Strategy Rattles Markets

In a significant move toward easing tensions, China has agreed to hold trade talks with the U.S. in Switzerland this week. The announcement comes as U.S. Treasury… pic.twitter.com/U2Ew54PRIS

— AsianFin 亞財社 (@AsianFinPress) May 7, 2025

Long-term Implications and Global Impact

Historically, attempts to renegotiate trade agreements with China have resulted in limited success. Despite the challenges, the current pause on tariffs has been positively received by global markets, lifting stock market indices significantly. However, the deal’s fragile nature breeds skepticism about achieving a final, lasting agreement.

The implementation of this agreement reflects efforts from both nations to address the US’s substantial $1.2 trillion trade deficit with China. The temporary reduction in tensions signals a potential shift towards more balanced economic relationships, though other nations like India contemplate retaliatory measures against ongoing US tariffs.