Beijing, April 7 – A senior Chinese official has pledged to safeguard the interests of US companies and maintain China as a “promising land” for foreign investment, even as Beijing retaliates against US tariffs with sweeping measures. The announcement follows China’s imposition of 34% tariffs on US imports, mirroring levies introduced by President Donald Trump on what he termed “liberation day.”
In addition to the tariffs, China has implemented export controls on seven rare earth elements, including gadolinium, used in medical imaging, and yttrium, essential for consumer electronics. Vice Commerce Minister Ling Ji urged US firms to take pragmatic steps to stabilize global supply chains and foster mutual cooperation.
The trade conflict has sent shockwaves through financial markets. On April 7, Asian trading floors experienced a broad sell-off, with no sector spared. Tech giants Alibaba and JD.com saw their shares plummet by 14% and 13%, respectively, while Japanese investment firm SoftBank dropped over 10%, and Sony fell by 9.6%.
The US exported $144.6 billion worth of goods to China in 2024, significantly less than the $439.7 billion it imported. Key export sectors include electrical and electronic equipment, fuels, oilseed, and grains. However, the escalating trade war has raised concerns about the stability of these industries.
As tensions rise, both nations face mounting pressure to resolve the dispute, which threatens to disrupt global supply chains and economic stability. Investors remain cautious, bracing for further developments in the unfolding trade showdown.
