News Analysis
On May 14, U.S. President Joe Biden enacted legislation imposing tariffs on Chinese electric vehicles and lithium batteries. In a parallel move, European authorities hinted at scrutinizing subsidies associated with Chinese imports in these sectors. In response, China is retaliating with anti-dumping investigations on vehicles imported from Europe and the United States. Amid this escalating tension, one key discussion during the recent G7 finance ministers’ gathering focused on China’s unfair trade practices and surplus production capacity. These developments suggest a de-globalization-driven global trade war is underway. What does the future hold for this conflict?
The New US-China Trade War Officially Begins—Yellen Seeks a Unified Front
During a recent interview on NTD’s “Pinnacle View” program, independent TV producer Li Jun discussed the start of a new trade war. For the United States, this represents an inevitable struggle. The escalating tension between the United States and China stems from the longstanding practice of the Chinese Communist Party’s (CCP) flooding of U.S. markets with surplus goods, particularly affecting American manufacturing for nearly two decades. The recent tariff hike by the United States marks just the initial phase of its response. Some Republicans criticize President Biden for a restrained approach, advocating for broader tariffs on Chinese goods. However, the current tariff escalation by the United States is expected to create a ripple effect across numerous nations, which concerns the CCP the most, prompting its retaliation.
