China and US to Discuss Economic and Trade Issues, Reports Xinhua

BEIJING (Reuters) – Chinese Commerce Minister Wang Wentao is set to have a call with his U.S. counterpart in the near future to discuss trade and economic relations, according to reports from China’s state-run Xinhua news agency.

The two ministers will talk about bilateral economic and trade issues, focusing on concerns such as restrictions on electric vehicles (EVs). Last month, during a two-day working group meeting in Beijing with a U.S. delegation, Chinese officials voiced serious concerns regarding additional U.S. tariffs, investment restrictions, and sanctions related to Russia.

A recent round of U.S. tariffs affecting $18 billion of Chinese goods, including EVs, EV batteries, and solar panels, took effect in late September. Lithium-ion batteries faced the most significant impact in terms of value, with the U.S. currently importing almost no Chinese EVs.

These tariffs were instituted following a review by the Office of the U.S. Trade Representative of duties that were first implemented by former President Donald Trump in 2018. The Biden administration has indicated that these tariffs are designed to protect key domestic industries from China’s state-driven overproduction. In response, Beijing has promised to retaliate.

China has long accused the United States of stifling its economic growth and technological progress out of what it perceives as unfounded fears. However, Beijing remains open to dialogue and negotiations, especially with the possibility of Trump’s return to the presidency. He has suggested he would consider imposing tariffs of 60% or more on Chinese goods if re-elected.

During a reception on the eve of China’s National Day, Xie Feng, China’s ambassador to the United States, posed a key question for state relations: "Are we rivals, or partners?" He emphasized that China’s success does not have to equate to a failure for the United States.

China’s relationship with the European Union is also facing renewed tension as Brussels accuses Beijing of saturating the European market with EVs, supported by what it calls unfair Chinese industrial policies and subsidies. The EU is expected to vote on implementing definitive tariffs on Chinese-made EVs this month.