Earlier this week, China's tariffs on some US products came into effect, in response to the 10% increase in duties that the Trump istration imposed on all Chinese products, starting on February 1st.
China created a 15% tariff on coal and Liquefied Natural Gas (LNG) and a 10% tariff on crude oil, agricultural machinery, cars with large engines and pickup trucks.
On February 4, Xi Jinping's government filed a lawsuit against the US government's tariff rise with the World Trade Organization's dispute settlement mechanism.
China has also implemented export controls on five metals: tungsten, tellurium, bismuth, molybdenum, and indium. These materials have various uses, including in technology, metallurgy, and the oil industry. China produces between 70% and 80% of the world's total production of these materials.
The spokeswoman for China's Ministry of Commerce, He Yongqian, said on Wednesday (12) that the country is willing “to resolve problems through dialogue and consultation,” but that “in the face of unilateral intimidation measures, China will take the necessary measures to defend its rights and interests.”
Guo Jiakun, spokesman for the Chinese Foreign Ministry, called on the United States to “correct its mistakes and stop politicizing and instrumentalizing economic and trade issues”.
Following the intensification of the conflict in Ukraine, which increased European demand for LNG, the United States became, in 2023, the world's largest exporter of this fuel for the first time, exporting 91.2 million tons. That same year, China sured Japan to become the world's largest LNG importer, with 72 million tons.
China is also the world's largest coal producer, consumer and importer. In 2024, the country imported almost 543 million tons of coal, according to China's General istration of Customs (GACC).
Tariffs' likely reverse effect
Trump’s tariffs could get the US into trouble. The 25% tariffs on Canadian mineral imports could cost US buyers around US$11.75 billion more, according to an analysis by Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies (CSIS).
In February, the implementation of tariffs was paused for 30 days after a meeting between Canadian Prime Minister Justin Trudeau and Trump.
Baskaran also said that the 25% retaliatory tariffs – announced by Canadian PM Trudeau – could lead Canadian companies to pay around US$7.6 billion, which could encourage them to look for alternatives to US products.
Targeting Taiwan
Trump also announced he may impose tariffs on chip imports from Taiwan. Taiwanese companies for more than 60% of the world's chip production.
The US president said that Taiwan's main semiconductor company, TSMC, had “stolen” US business, and accused the Taiwanese government of depending on US military funding without paying for it.
Zhu Fenglian, spokesman for the Taiwan Affairs Office of China's State Council, said that “the more the authorities of the ruling Democratic Progressive Party (DPP) rely on the United States, the more they harm Taiwan's interests.”
“US unilateralism and trade protectionism have proven once again that they will always put 'US interests first'. The so-called 'solutions' are nothing more than 'selling Taiwan to favor the United States', a move that would damage the basis of Taiwan's industrial development and sacrifice the interests and well-being of the Taiwanese people,” Zhu said.
This week, the Vice Minister of Economy, Cynthia Kiang, and the Deputy Director General of the island's Industrial Development istration, Chen Pei-li, traveled to Washington to meet with Trump istration officials and try to prevent the implementation of tariffs on Taiwanese chips, according to the local newspaper Focus Taiwan.
Five minerals under restriction
Tungsten, tellurium, bismuth, molybdenum and indium have not been banned from export but will have export controls. In a statement, China's Ministry of Commerce said that exports will follow the criteria of “non-proliferation and other international obligations.” Non-proliferation refers to chemical and nuclear weapons. The ministry said the decision was taken “based on the need to safeguard [China’s] national security and interests.”
China produces more than 80% of the world's tungsten production (63,000 tons in 2023) and also has the world's largest reserves of this mineral. It is used in the metallurgy, mining, construction and weapons industries.
That same year, China was the largest producer of refined tellurium, ing for 67% of global production. In the US, it is used mainly in the chemical and metallurgical industries.
China's bismuth reserves are estimated at around 240,000 tons, almost two-thirds of the world's total. From 2021 to 2023, China ed for more than 75% of global production. Bismuth in the US has mainly cosmetic, industrial, laboratory and pharmaceutical applications.
China has the largest molybdenum production: 110,000 tons, 42.31% of the global total, according to 2023 data. It is mainly used in the iron and steel industry and, to a lesser extent, in chemicals.
Indium is used in the electronics industry, semiconductor production, atomic energy, solders and alloys. China produced 646 tons of the metal in 2023, almost 50% of the world's total production.
