China and U.S. Wait for Other to Blink in Tariff War

The report outlines key developments in China over the past week, covering topics from trade negotiations with the U.S. to advancements in various industries.

**Trade Negotiations:** The Sino-U.S. trade tensions continued, with U.S. President Donald Trump calling on China to initiate trade negotiations, asserting that Beijing needed to strike a deal for access to American consumers. He underscored that the U.S. did not need to compromise, given its strong economic position. Meanwhile, Beijing retaliated against the U.S.’s 145% import tariffs on Chinese goods with reciprocal 125% duties on U.S. products, dismissing Washington's tariff hikes as a "joke" [para. 2].

In response, China expressed willingness to engage in trade consultations but emphasized that the U.S. bore full responsibility for starting the disputes through tariff impositions. It urged the U.S. to stop using tactics of pressure and coercion, proposing dialogue on equal terms for resolving the issue [para. 3].

**TikTok Deal and Tariff Linkage:** Trump indicated that potential progress on the sale of TikTok's U.S. operations, involving its Chinese owner ByteDance Ltd., would depend on trade negotiations with Beijing. His administration had previously linked easing tariffs to a TikTok deal. While Washington delayed the app's ban for 75 days, Trump’s comments tied the app's fate to ending the tit-for-tat tariff conflict, recognizing the potential negative impact of heightened tariffs on U.S. consumer spending [para. 4].

**Export Growth Surge:** Despite trade barriers, China’s exports surged by 12.4% year-on-year in March, achieving their highest growth in five months. This boost stemmed from a rush to fulfill orders before new U.S. tariffs took effect. Notable growth areas included labor-intensive goods like textiles and high-tech product exports, with sales expanding not only to the U.S. and EU but also to emerging markets such as Latin America and Southeast Asia. However, the trade surplus of $102.64 billion may face challenges with new tariffs expected in April, as China's export environment becomes increasingly complex [para. 5].

**Insurance Sector Boost:** To strengthen long-term investments, China approved Taikang Insurance Group's establishment of a private fund firm. This decision aligns with Beijing's earlier commitment to inject 100 billion yuan into stock markets during the year's first half. These measures aim to stabilize domestic equity markets after volatile conditions triggered by U.S. tariffs. The insurance sector's enhanced involvement is projected to add significant long-term capital worth several hundred billion yuan to Chinese equities [para. 6].

**Huawei’s Electric Vehicle Venture:** Huawei and SAIC Motor launched their new EV brand, Shangjie. It marks Huawei’s deeper integration into the auto sector, shifting from a supplier to a collaborator with state-owned automakers. With a 6 billion yuan investment and a 5,000-member team, this initiative underscores Huawei’s commitment to incorporating smart, technology-forward features into vehicles, enhancing its competitive edge in China's automotive market [para. 7].

**U.S. Chip Export Restrictions:** Nvidia disclosed it now requires U.S. government approval to export its H20 chips to mainland China, Hong Kong, and Macao. Despite Chinese clarifications exempting U.S.-designed chips made outside the U.S. from import tariffs, Washington’s tighter export controls have heightened concerns about access to advanced semiconductor technology. Although the developments have significant implications for AI and semiconductor industries, China remains reliant on extranational manufacturers for competitive tech [para. 8].

These highlights reflect ongoing geopolitical tensions, significant domestic developments, and evolving industrial dynamics in China. [para. 2][para. 3][para. 4][para. 5][para. 6][para. 7][para. 8]