China has indicated its readiness to handle any “unexpected shocks” ahead of anticipated tariff increases by US President Donald Trump on the Chinese economy, the world’s second-largest. Premier Li Qiang, who oversees economic matters under leader Xi Jinping, addressed foreign business leaders in Beijing, highlighting rising uncertainty and instability, yet affirming China’s commitment to globalization and multilateralism.
Li stated that preparations were in place for potential shocks, primarily from external sources. On April 2, the US is expected to introduce additional tariffs on Chinese imports as part of its strategy to implement “reciprocal tariffs” globally. This cautionary statement from Li comes as Beijing seeks to bolster consumer and investor confidence while preparing for possible retaliatory measures against future US tariffs and sanctions.
Since assuming office, Trump has already imposed 20 percent tariffs on Chinese goods, intending to pressure Beijing to take stronger action against companies producing ingredients for fentanyl, a synthetic opioid contributing to a drug epidemic in the US.
Li’s remarks coincide with global anticipation of the impact of reciprocal tariffs, amid expectations that Trump is unlikely to offer waivers before the deadline. Few high-level discussions have occurred between the US and China since Trump took office, except for a phone call between him and President Xi Jinping.
Recently, Trump mentioned that Xi would visit the US in the “not too distant future,” although sources familiar with US-China conversations stated there were no current plans for Xi’s visit. Later on Sunday, Li is expected to meet Steve Daines, a Republican senator from Montana with close ties to Trump. Daines, who has prior business experience in China, recently met with Vice Premier He Lifeng in a rare meeting between a senior American lawmaker and a top Chinese official.
According to Daines’ office, in his meeting with He, the senator reiterated Trump’s demand for China to stop the flow of chemicals used to make fentanyl. He also expressed optimism about future high-level talks between the United States and China.
