In a recent address at Forbes’ U.S.-China Business Forum held virtually in New York, China’s ambassador to the U.S., Xie Feng, pinpointed U.S. tariffs and export controls as the driving forces behind the drop in trade between the two nations. Xie’s speech, made via video, was shared by the Chinese Embassy in the U.S. and highlighted the challenges faced by both countries due to these measures.
China-U.S. trade has experienced a significant 14.5% decrease in the first half of this year when compared to the same period last year. Ambassador Xie drew a direct link between this decline and the imposition of Section 301 tariffs on Chinese imports by the U.S., along with the utilization of unilateral sanctions and stricter export controls. He emphasized that this situation has negatively impacted the lives of numerous families and has placed a burden on businesses from both sides.
Highlighting the importance of the China-U.S. trade relationship, Xie noted that the U.S. stands as China’s largest individual trading partner. Recent data from China’s customs authority demonstrated a continued decrease in U.S.-China trade, with a 15.4% decline in July compared to the same period in the previous year.
Xie underscored the potential risks associated with a decoupling of the two economies and emphasized the need for cooperation and stability. He expressed concerns about confrontations between the two nations, noting that shutting out China would limit opportunities, cooperation, and overall development.
Despite the shifting landscape, exports remain a crucial contributor to China’s economy, although their proportion has decreased in recent times. Meanwhile, the U.S. government recently revised its second-quarter domestic product figures, showing a lower-than-expected annualized pace of 2.1%. This revision was attributed to reduced business spending on equipment, according to reports from Reuters.
