U.S.A's Action Met with China's Countermeasure: Refusal to Submit Kneels to Pressure
In a bold move at the BRICS foreign ministers' meeting in Brazil, Chinese Foreign Minister Wang Yi slammed the U.S., branding them as "arrogant" and "bully" for their trade tactics. The event, held in Rio de Janeiro, saw Wang urging fellow BRICS nations to band together against American trade pressure.
In a fiery speech, Wang accused the U.S. of using tariffs like a battering ram, claiming this tactic gives them the upper hand in demanding exorbitant fees from other countries. He also said that the U.S.'s silence would only embolden them further. The Chinese Foreign Ministry backed up his sentiment with a video message: "China won't back down. Standing up for ourselves maintains the possibility of unity; retreat would be fatal."
Financial markets felt Beijing's force as Asian markets responded favorably following the People's Bank of China's interest rate hike. Offshore Yuan grew by 0.2%, reaching its highest level in over three weeks. Chinese stocks in Hong Kong rose by 1.1%, while mainland-listed stocks saw a slight decline during the day. However, trading volumes remained below average.
Despite U.S. signals of new trade talks with China, Chinese officials have denied any capitulation. The Chinese side insists that negotiations cannot begin until all U.S. tariffs are removed and both countries move forward on equal terms. In response, U.S. Treasury Secretary Scott Bessent stated that they "don't want to escalate tensions."
China's exporters are under threat due to increasing U.S.-China trade tensions. Nomura's analysis suggests that current tariff policies could put 15.8 million Chinese export-related jobs at risk. Sectors like textile and chemical, highly dependent on U.S. exports, could be particularly affected.
To ease the pressure, China's administration has shown support for exporters by announcing that the central bank may consider interest rate cuts and inject more liquidity into the market. Last year, one-third of China's economy was driven by exports.
As China steps up as a champion of free trade, Wang Yi concluded his speech with a warning to the BRICS nations: "Don't be fooled by the U.S.'s use of free trade as a threat."
This stance is part of a broader strategy by China, as it seeks to position itself against U.S.-centric trade norms and advocate for multilateral agreements with other nations. BRICS, having a combined GDP representing over 40% of the global economy, is striving to present itself as a non-Western economic counterweight.
Enrichment Data:- The BRICS nations, consisting of Brazil, Russia, India, China, South Africa, and recently expanded members like Egypt, Saudi Arabia, the UAE, Ethiopia, Indonesia, and Iran, have united against U.S. trade pressures, primarily targeting President Donald Trump’s tariff policies.- The bloc criticized the “revival of trade protectionism” and reaffirmed their rejection of unilateral tariffs, while advocating for multilateral trade systems.- BRICS members aim to offset U.S. trade pressures through regulatory cooperation, such as pharmaceuticals, and are discussing a shared currency to reduce dollar dependence, partly in response to U.S. sanctions and trade pressures.- China's central role in BRICS lies in leveraging its economic heft to steer the bloc toward greater geopolitical influence, while maintaining China's broader de-dollarization efforts.
- The Chinese Foreign Minister, Wang Yi, emboldened BRICS nations at a meeting in Brazil, urging them to stand together against American trade pressure.
- Wang accused the U.S. of using tariffs like a battering ram, warning BRICS about the dangers of US trade tactics.
- Following Beijing's assertive stance, Finance markets, like the stock-market, felt the impact with Asian markets responding favorably to China's interest rate hike.
- Despite U.S. signals of new trade talks with China, Chinese officials have denied any capitulation, insisting on equal terms in negotiations.
- China's exporters face threats due to increasing U.S.-China trade tensions, with sectors like textile and chemical particularly at risk, according to Nomura's analysis.
- To ease the pressure, China's administration has shown support for exporters by considering interest rate cuts and injecting more liquidity into the market.
- BRICS, led by China, is striving to present itself as a non-Western economic counterweight against US-centric trade norms and advocate for multilateral agreements with other nations.
