Trump Launches All-Out Offensive Against China... Countdown to Deteriorating Relations
U.S. Restricts Chinese Investment in Raw Materials and Energy
China Faces Complex Calculations Over End of Ukraine War
U.S. President Donald Trump has recently unleashed comprehensive regulatory policies targeting China's industry and capital, leading to analyses that U.S.-China relations will soon deteriorate significantly.
According to Bloomberg on the 23rd (local time), the Trump administration's successive China containment policies are rapidly freezing relations between the two countries.
Although there was a sense of relief when President Trump lowered his initial inauguration pledge of a '60% tariff on China' to a '10% additional tariff,' the regulatory intensity has recently been strengthening again.
Howard Lutnick, Secretary of Commerce, and other Trump administration officials met with Mexican authorities on the 20th, pressuring them to impose their own tariffs on China to avoid the U.S. 25% tariffs, signaling a mood of encircling China.
President Trump's memorandum on the 'America First Investment Policy,' signed on the 21st, is also considered strong. The memorandum designates six countries, including China, as hostile nations.
It states that all legal means, including the Committee on Foreign Investment in the United States (CFIUS), will be used to restrict Chinese investments in U.S. technology, critical infrastructure, healthcare, agriculture, energy, raw materials, and other strategic sectors. It also limits U.S. companies' investments in Chinese semiconductors, artificial intelligence (AI), quantum technology, and biotechnology.
Bloomberg explained that the memorandum also includes provisions to review the U.S.-China tax agreement that exempts individuals and companies from double taxation and the agreement related to variable interest entities (VIE) used when Chinese companies list in the U.S.
The Trump administration is also targeting China's shipbuilding and shipping industries, which hold a global market share of 50%.
The U.S. Trade Representative (USTR) announced on the 21st that it is pursuing a plan to impose fees on international maritime transport services related to Chinese shipping companies and Chinese-made vessels. President Trump has a clear policy to correct China's $295 billion (approximately 421 trillion KRW) trade surplus with the U.S.
China appears unsettled by this U.S. offensive. On the 21st, Chinese Vice Premier Huai Feng expressed concerns about the U.S.'s additional 10% tariffs during a video call with U.S. Treasury Secretary Steven Mnuchin.
President Trump's plan to end the Ukraine war through negotiations with Russia could also place a burden on China.
If President Trump excludes the European Union (EU) and ends the Russia-Ukraine war, relations between the U.S. and Europe could worsen, potentially benefiting China indirectly.
However, there are concerns both inside and outside China that if the U.S. restores relations with Russia following the end of the Ukraine war and intensifies its containment of China, the situation for China could worsen further.
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