beijing replaces key trade negotiator amid us tensions
beijing, Wednesday, 16 April 2025.
China has replaced its top trade negotiator with Li Chenggang. The move comes as trade talks with the us remain stalled and tensions escalate. This shift in Beijing’s approach could significantly impact major semiconductor companies, including Nvidia, ASML, and TSMC. The us has imposed cumulative tariffs of 145% on Chinese imports. China has retaliated with tariffs up to 125%. The white house insists that ‘the ball is in china’s court’ for a trade deal.
trade war escalates with tariff volleys
The ongoing trade war between the United States and China, which began in 2018, continues to intensify [2]. The us has escalated trade tensions by imposing cumulative tariffs of 145% on all imports from China [1]. This includes a 20% duty related to fentanyl trade [1]. China has retaliated with tariff increases of up to 125% on us goods [1]. Analysts suggest that such high duties could effectively halt trade between the world’s two largest economies [1].
semiconductor industry faces uncertainty
The semiconductor industry is particularly vulnerable amid these escalating trade tensions [4]. Trump stated his administration is examining semiconductors and the entire electronics supply chain as part of an upcoming national security tariff investigation [3]. Us Commerce Secretary Howard Lutnick emphasized the need to build semiconductors and electronics in America [3]. These factors contribute to market volatility for semiconductor stocks [4]. The potential for new tariffs adds further uncertainty [4].
china’s response and rare earth restrictions
China has responded to us tariffs with reciprocal measures, including halting exports of key minerals and magnets used in the car, semiconductor, and aerospace industries [4][6]. Shipments of magnets have been stopped at many Chinese ports [6]. These restrictions, which began on April 4, 2025, are a direct response to President Trump’s tariff increases [6]. China produces 90% of the world’s rare earth magnets, making these export restrictions a significant concern for manufacturers [6].
japan navigates us trade policy
Japan’s stock market experienced significant volatility amid us trade policy concerns [5]. The Nikkei 225 index once surged over 700 points, a gain exceeding 2%, following announcements that smartphones would be excluded from ‘reciprocal tariffs’ [5]. However, the Bank of Japan Governor, Ueda Kazuo, noted that us tariff policies have sharply increased uncertainty for the global and Japanese economies [5]. Japan’s economic minister, Akazawa Ryosei, is scheduled to visit the us this week to begin trade negotiations [5].
us trade strategy and global relations
The white house maintains that tariffs are a negotiating tactic to secure more favorable trade terms [3]. However, former us Ambassador to China, Nicholas Burns, described the situation as ‘one of the worst crises in relations since the full resumption of diplomatic relations between the us and China in 1979’ [4]. Rush Doshi, an expert on us-China relations, observed that the us currently lacks a grand strategy and is instead employing a series of unrelated tactics [4]. Doshi hopes for agreements with allies to address China’s trade practices [4].