China has reacted to the U.S. incredibly raising tariffs to the level now of 125% on Chinese goods, by raising its tariffs on U.S. goods to an additional 50%, which are to go into effect at noon on April 10. They have also put 12 more U.S. firms on the restricted list, preventing Chinese companies from supplying goods to these companies—goods that have both civilian and military applications. China has also intervened in capital markets in order to shore up investor confidence by increasing the purchase of A-shares by state-backed funds.
Speaking at a symposium with economists and entrepreneurs on April 9, Chinese Premier Li Qiang said, “We’ve made a full assessment and have been preparing for a variety of uncertainties.” President Xi Jinping also spoke at the symposium about the importance of strengthening China’s relationship with its neighboring countries, many of which will also be harmed by the Trump tariffs, stressing in particular the importance of the Belt and Road Initiative as a means for doing this. The conference called for viewing neighboring regions through a global perspective and strengthening the sense of responsibility and mission in advancing China’s neighborhood work.
