As American President Donald Trump escalated his trade war against China by imposing sharp tariffs, while at the same time suspending similar actions for other countries, Chinese President Xi Jinping called on the European Union (EU) on Friday to stand together against what he termed Washington's "unilateral bullying."
"There is no winner in a tariff war, and acting against the world will only lead to self-isolation," Xi said, ending his silence since Trump imposed a series of tariffs that shook global markets.
While holding talks with Spanish Prime Minister Pedro Sanchez—a politician from the EU bloc of 27 nations—Xi highlighted China and the EU's joint responsibilities as a global force. "We need to work together to safeguard economic globalization and resist the pressure of unilateralism against the global trade system," he was quoted as saying by China's state-run Xinhua news agency.
"China and the EU are staunch advocates of economic globalisation and free trade," Xi said.
He also mentioned that staying united not only protects their shared interests but also preserves fairness and international justice by safeguarding global norms and rules.
In retaliation for China's retaliatory tariffs after Trump first imposed a 34 percent tariff on Chinese imports, the American president upped the ante by increasing duties to a record 145 percent. But he suspended duties on other countries temporarily, including those of the EU, for 90 days—isolate China in the spat.
In a mirror-to-mirror reaction, Beijing countered by hiking its own duties on US imports to 125 percent from 84 percent, showing a intensification of a standoff in the realm of global trade between the world's two greatest economies.
Earlier, the EU had also announced a 90-day halt of its counter-tariffs following Trump's move of imposing a corresponding pause on what he called "reciprocal" trade measures. "We want to give negotiations a chance," European Commission President Ursula von der Leyen said in an interview with CNN on Thursday.
Trump's unilateral tariff freeze took Beijing by surprise, as it had hoped to mobilize wider international opposition against the United States' protectionist initiatives.
Trump previously issued several tariff threats against the EU—25 percent tariffs on steel and aluminum, 25 percent tariffs on cars, and a 20 percent tariff on numerous other goods under the pretext of reciprocity.
China considers the EU as a key trade ally, together with the ASEAN bloc and the U.S., as one of its top three export markets.
Reflecting on China's development trajectory, Xi said the country has relied on its own strength over the past 70 years and more, never depending on outside benevolence nor fearing unjust suppression.
Regardless of changing global circumstances, Xi reaffirmed China’s confidence and commitment to managing its internal affairs effectively, Xinhua reported.
Xi highlighted that China and the EU, both economic powerhouses and staunch backers of globalization and free trade, now share a deeply interconnected relationship—with their combined output accounting for over a third of the global economy.
Prime Minister Sanchez, echoing Xi’s views, noted that China remains a vital partner for the EU. He reaffirmed the bloc’s dedication to open markets, multilateral cooperation, and rejection of unilateral tariff increases.
In the midst of this escalating tariff conflict, reports from the EU characterized the situation as a possible "trade decoupling," compelling Chinese exporters to look for new markets as their products encounter increasingly mounting barriers in the U.S.
The EU, worried about an inrush of cheap Chinese goods, has committed to acting in advance. "We are ready to activate every instrument in our trade defence toolbox in order to safeguard the EU single market, producers, and consumers," EU trade commissioner Maros Sefcovic said in an interview with the South China Morning Post on Friday.
Even prior to these recent developments, EU sectors were already dealing with the problem of Chinese overcapacity. In a note from Rhodium Group, those sectors simultaneously affected by higher Chinese imports and softer EU production represent 25 percent of the region's manufacturing employment.
On Tuesday, Chinese Premier Li Qiang and European Commission President Ursula von der Leyen spoke by phone, with von der Leyen confident in China's capacity to withstand outside shocks such as Trump's tariffs. She said China had "enough policy tools" to neutralize the effect.
Aside from the EU, China also intensified its diplomatic contacts with its regional neighbors. Xi will lead a state visit to Vietnam, Malaysia, and Cambodia from April 14 to 18, looking to bolster trade ties, strategic cooperation, and tackle supply chain issues in view of the continued tariff tensions with the U.S.
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