China's Proposed Response to US Tariffs
In response to the latest round of tariffs imposed by the US administration, China plans to prioritize the following measures, as reported by the Wall Street Journal:
* Restoring the Phase 1 Trade Deal: China aims to reinstate the 2020 trade agreement, which it believes was undermined by the pandemic. This involves increasing China's purchases of US goods to meet the agreed-upon targets.
* Currency Stability: China pledges to maintain the value of its currency against the US dollar, addressing concerns about currency devaluation.
* Investment in the US: China expresses its intention to invest more in the US, contributing to the economic growth of both nations.
* Fentanyl Reduction: China commits to curtailing exports of fentanyl precursors, substances used in the production of the potent opioid.
These proposals indicate China's willingness to engage in negotiations with the US to resolve the trade dispute. They also include measures aimed at addressing US concerns regarding intellectual property theft, currency manipulation, and trade imbalances.
International Response
Canada, a close US ally, has retaliated against the tariffs by imposing reciprocal measures on US goods. In contrast, China has remained open to dialogue, recognizing the importance of preventing a further escalation of the conflict.
Outlook for TikTok
The Wall Street Journal also reported that China intends to treat TikTok as a commercial matter, allowing investors in ByteDance to negotiate a deal with potential US bidders. The US government has previously indicated its preference for a bidding war over the popular app.