China avoids escalation in customs confrontation with the USA.

China plans to challenge Trump's new tariffs at the WTO

China plans to challenge the new tariffs imposed by the Trump administration at the World Trade Organization (WTO) and respond with countermeasures. The Chinese government condemned the introduction of a 10% tariff on Chinese imports by the USA but left the door open for negotiations. The Ministry of Commerce of China stated that Trump's move 'seriously violates' the rules of international trade and called on the USA to restore dialogue and strengthen cooperation.

The Chinese government is not prepared for decisive countermeasures, as Canada and Mexico did, but has expressed its intention to challenge the tariffs at the WTO.

Filing a complaint with the WTO may help China win in the public domain but will not cancel Trump's tariffs. The WTO dispute resolution system has been stalled since 2019, when Trump blocked the appointment of judges to hear appeals.

China seeks ways to mitigate the impact of US trade measures

The huge positive trade balance of China (almost 1 trillion dollars last year) is a vulnerability for Beijing. Chinese exports in key industrial sectors are growing faster in real terms, indicating falling prices, and analysts expect China to attempt a deal with Trump to mitigate the impact of US trade measures. Additionally, China has been preparing for tariffs for months, deepening ties with allies, developing independence in key technology sectors, and investing in the development of its vulnerable economy.