03-06-2025
China accused the US of violating a May 12 trade truce by imposing AI chip export controls, stopping chip design software sales, and planning to revoke Chinese student visas, escalating tensions in the trade war. The US and China had agreed to a 90-day tariff pause, but China's Commerce Ministry said the US actions "seriously undermine the existing consensus" and damage China's interests. Treasury Secretary Scott Bessent remains "confident" that a trade dispute will be resolved when Trump and Xi Jinping talk. The renewed tensions caused Wall Street to fall, with the S&P 500 slipping 0.2%.
03-06-2025
China's Foreign Ministry criticized US Defense Secretary Pete Hegseth for labeling China a threat, saying his comments were "filled with provocations" and touted a "Cold War mentality." Hegseth had spoken at the Shangri-La Dialogue security conference in Singapore, saying China's military is "rehearsing for the real deal" and the threat it poses is "real" and "could be imminent." China responded by stating that the US is the primary factor undermining peace and stability in the Asia-Pacific and urged the US to abide by the one-China principle and stop supporting "Taiwan independence" separatist forces.
03-06-2025
The US economy and trade are experiencing significant developments, particularly with regards to the ongoing trade war with China. US Commerce Secretary Howard Lutnick expressed optimism for a potential US-India trade deal, while criticizing efforts by the BRICS bloc to de-dollarize. US President Donald Trump has imposed tariffs on China, which have been met with resistance from the Chinese government. The US Court of International Trade blocked some of Trump's tariffs, citing that he overstepped his authority, but an appeal court later allowed them to stay in effect. Trump's administration has also imposed tariffs on other countries, including the EU, and has taken a hardline stance on trade negotiations. Meanwhile, US businesses are feeling the effects of the trade war, with farmers experiencing a decline in soybean exports to China, while companies like Boeing are seeing potential opportunities in the Chinese market. The US has also taken steps to restrict China's access to advanced technologies, including AI chips.