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Economy

China remains committed to foreign investment despite Trump’s tariff war

10:00

A high-ranking Chinese official has assured that China will continue to be a "promising land" for foreign investment, despite ongoing trade tensions with the U.S. and the recent implementation of 34% tariffs on American imports. This move came as retaliation against similar tariffs introduced by President Donald Trump.

In addition to the tariffs, China imposed export restrictions on seven rare earth elements, including gadolinium, commonly used in medical imaging, and yttrium, crucial for consumer electronics. These actions were seen as part of China’s broader strategy to challenge the U.S.’s trade policies.

During a meeting with representatives of American companies such as GE Healthcare and Medtronic, Vice Minister of Commerce Ling Ji emphasized that the tariffs were intended to protect the legitimate rights of businesses, including U.S. firms operating in China. He stressed that these measures were aimed at encouraging the U.S. to return to the multilateral trade system.

Ling also suggested that American companies, including those like Tesla, led by Elon Musk, should cooperate with China to ensure the stability of global supply chains and work towards mutually beneficial outcomes. He placed the blame for the trade conflict squarely on the U.S.

Despite China’s continued engagement with foreign businesses, the trade conflict had immediate effects on the stock markets. Shares across various sectors, including technology, automotive, and energy, experienced significant declines. Major Chinese e-commerce companies like Alibaba and JD.com saw losses of 14% and 13%, respectively, while other firms such as Sony and SoftBank also witnessed sharp drops.

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