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WORLD

China Blames US for Delay in Ties

China accused the United States of “wants to reignite the sense of national purpose by making China an ‘imaginary enemy’,” Vice Foreign Minister Xie Feng said at the meeting with Deputy Secretary of State Wendy Sherman, state television reported. Sherman came to the eastern city of Tianjin for a meeting with Xie Feng and Chinese Foreign Minister Wang Yi on Sunday, a day after Wang had warned that China would not allow the United States to take a superior position in the relationship.


Senior US officials had described Sherman’s expected position during the meeting, saying the United States greeted competition with Beijing but would request on a level playing field and guardrails to avoid conflicts. The US government have been openly disapproving of China’s policy in Hong Kong and Xinjiang, which is a bill to ban imports from the far western region, mentioning forced labour concerns.


At the meeting in Alaska, Chinese officials protested against US democracy, while US officials blamed China for grandstanding during the session. Ties have continued to worsen since, with measures such as tit-for-tat sanctions and diplomatic points having dominated in the Tianjin talks. Sherman will continue the discussions on Monday before travelling to Geneva to head a US commission at negotiations with Russia over nuclear arms control.

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WORLD

China Opposes New US Tariffs, Vows Retaliation

Dhruva Kulkarni

China has strongly opposed the new US export tariffs and pledged countermeasures to protect its interests. It criticised the move as unilateral bullying and urged Washington to cancel the tariffs, warning of risks to global economic stability.

Under President Trump, the US has imposed a 10% tariff on imports worldwide, with harsher duties on key trading partners. China faces a 34% tariff and a 20% duty imposed earlier. In response, Beijing has placed up to 15% tariffs on US agricultural goods like soybeans, pork, and chicken. The escalating trade war threatens China’s economic recovery, already strained by a property sector crisis and weak consumption.

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While Trump calls the tariffs “reciprocal,” experts argue his claims about US trade losses are exaggerated. China accused the US of ignoring years of trade negotiations and benefiting from global trade. Beijing has called for dialogue, warning that protectionism will not resolve the US’s economic challenges.

The US has also imposed a 25% tariff on steel and aluminium imports, though China is not a major exporter of these products to the US.

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India, Chile Strengthen Ties with Focus on Critical Minerals & Defence

Dhruva Kulkarni

India and Chile have agreed to launch talks on a comprehensive economic partnership to strengthen bilateral trade.

Prime Minister Narendra Modi and Chilean President Gabriel Boric Font met in New Delhi on 1st April to discuss trade, defence, critical minerals, and health, with Chile as a key Latin American partner for India.

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Both leaders agreed to begin negotiations for a trade pact to expand investment opportunities and economic ties. Collaboration on critical minerals will focus on building resilient supply and value chains, while defence cooperation will include industrial manufacturing and supply networks tailored to mutual needs.

Additionally, both nations will work together on security challenges, including organised crime and terrorism, while simplifying visa procedures to promote student exchanges.

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China’s Private Factory Output Beats Forecasts Despite Trump Tariffs

Dhruva Kulkarni

China’s manufacturing activity grew at its fastest pace in four months, defying expectations ahead of Trump’s planned tariff hikes on exports to the US.  

The Caixin manufacturing PMI rose to 51.2 in March from 50.8 in February, surpassing forecasts and indicating expansion.  

Supply and demand improved, and exports grew, but the job market remained weak, and deflationary pressures persisted.

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The private survey focused on small and export-driven firms and showed stronger results than the official poll.  

Despite US tariffs, China’s manufacturing sector displayed resilience, with new export sales rising at the fastest pace in nearly a year.  

Trump’s administration plans new reciprocal tariffs on 2nd April, with China warning of retaliation, adding to trade uncertainty.

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German Retail Sales Climb, But Import Costs Weigh on Outlook

Dhruva Kulkarni

German retail sales rose 0.8% in February, surpassing analyst expectations of 0.2%, but increasing import prices pose inflation risks that could impact consumer spending.

Economists remain cautious, citing weak consumer sentiment. Chief economist Alexander Krueger noted that growing job concerns are limiting spending. Unemployment increased by 26,000 in March to 2.92 million, nearing the 3 million mark for the first time in a decade.

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Import prices jumped 3.6% year-over-year in February, the highest in over two years, driven by food costs. As Germany imports many raw materials, these higher costs could push inflation up.

March inflation data, set for release on Monday, is expected to drop slightly to 2.4% from 2.6% in February.

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Xi Jinping Meets Global CEOs Amid Slowing Investment

Dhruva Kulkarni

Chinese President Xi Jinping met with global CEOs in Beijing to attract foreign investment and support China’s slowing economy amid geopolitical tensions.  

Beijing faces challenges reassuring investors about its $18 trillion economy, with concerns over strict regulations, crackdowns on foreign firms, and a business environment favouring state-owned companies.  

Xi thanked foreign enterprises for contributing to trade, industry, tax revenue, and job creation. Around 40 executives, mostly from the pharmaceutical sector, attended the meeting as China seeks to reverse a sharp 27.1% drop in foreign direct investment (FDI) in 2024—the steepest decline since the 2008 financial crisis.

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He emphasised the role of multinational corporations in stabilising the global economy and urged them to support economic cooperation. The meeting followed the China Development Forum, where Premier Li Qiang called for open markets amid rising global uncertainty.  

Xi has also engaged domestic businesses, including a rare meeting with China’s top tech leaders last month, signalling efforts to restore economic confidence.

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