“We can do without your grain and oil”: China is not backing down in trade war with the US
29 April 12:47
Senior officials of the economic bloc of the Chinese government have said that the country is able to provide for itself without imports of American agricultural goods and energy resources. This statement was made against the backdrop of an escalating trade conflict with the United States, Komersant ukrainskyi reports citing the Financial Times.
Zhao Chengxin, vice chairman of the National Development and Reform Commission, said that China can meet its needs for grain and energy through domestic production and supplies from alternative sources. According to him, the refusal to purchase American fodder crops and oilseeds will not have a significant impact on the country’s food security.
“Even if we don’t buy feed grains and oilseeds from the United States, it won’t cause significant damage to our grain balance,” Zhao said,
– Zhao said during a press conference on Monday, at which Chinese officials tried to reassure the public about the state of the economy.
He also added that energy imports from the United States-oil, natural gas, and coal-are not critically necessary and can be easily replaced by other sources.
In 2023, China purchased about $33 billion worth of American agricultural goods and $15 billion worth of energy. However, these figures should not be misleading. For example, the share of Brazil and Argentina in exports to China is growing. In particular, the share of the United States in food imports to China decreased from 20.7% in 2016 to 13.5% in 2023, while Brazil’s share increased from 17.2% to 25.2%.
Zhao Chengxin said that Beijing is confident in achieving this year’s GDP growth target of 5%, although he admitted that external shocks are becoming more noticeable.
For his part, Chinese Vice Minister of Commerce Shen Qiuping said that exports remained positive in April despite the trade war.
China is not backing down
Despite the Trump administration’s growing calls for the resumption of negotiations with Beijing, the Chinese side has not demonstrated readiness for dialogue. On the contrary, Beijing has repeatedly called Washington’s statements about the allegedly ongoing negotiations a lie. Last week, China voiced a demand that the United States should cancel the duties before talking about resuming negotiations.
The total mutual duties in trade between the two superpowers have already exceeded 100%, and this has begun to affect manufacturing activity in China. Some Chinese factories are forced to send workers on forced furloughs due to reduced orders.
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External and internal measures of the PRC
The government promises to speed up the implementation of measures to stabilize employment and economic growth. These measures include expanding credit support for exporters and stimulating sales of Chinese goods in the domestic market and in new foreign regions.
Deputy Governor of the People’s Bank of China Zou Lan promised to ease reserve requirements for banks and cut the discount rate when appropriate. He also emphasized that the central bank is focused on stabilizing the yuan exchange rate.
The Ministry of Human Resources and Social Security reported on new initiatives: state-owned companies have been instructed to hire young university graduates more actively. In addition, funding for employment support programs has been increased.
According to official data, the unemployment rate in Chinese cities in March was 5.2%, while among young people this figure was significantly higher – 16.5%.
“Chinese government officials are on high alert. While there have been many promises to support business and stimulate consumption, the number one priority is actually to stabilize the labor market,”
– said Louise Lu, lead China economist at Oxford Economics.
Trade war between the US and China: the beginning
The trade confrontation between the world’s two largest economies escalated sharply in early 2025 after Trump’s re-election. on February 1, Washington imposed a 10% tariff on all Chinese imports, accusing Beijing of “unfair trade” and manipulating the yuan exchange rate. on March 4, tariffs were raised by another 10%, bringing the total level of duties to 20%.
In response, China announced the introduction of 15% duties on American agricultural products and 10% duties on other goods. This was followed by a series of announcements of new tariffs from both sides.
As a result, as of April 22, 2025, the United States increased duties on Chinese imports to 145%, leaving temporary exemptions for certain technology goods at a rate of 20%. In response, China has introduced mirror measures, imposing duties on US goods up to 125% and restricting exports of critical rare earth metals. The trade confrontation between the two countries is escalating, with no signs of de-escalation.
