In response to Trump’s imposition of a 10% tariff on Chinese goods, the Chinese government issued several statements.
Ministry of Foreign Affairs Spokesperson Answers Questions from Journalists Regarding the U.S. Announcement of a 10% Tariff on Chinese Goods
(February 2, 2025, 11:28)
Question: On February 1 (U.S. Eastern Time), the United States announced that it would impose a 10% tariff on products imported from China. What is China’s comment on this?
Answer: The U.S. has cited the fentanyl issue to impose a 10% tariff on Chinese goods. China is extremely dissatisfied with and firmly opposed to this action, and will take necessary countermeasures to resolutely safeguard its legitimate rights and interests.
China’s position has always been consistent and firm: there are no winners in trade wars or tariff wars. The U.S. unilateral imposition of tariffs seriously violates WTO rules. This approach will not resolve its own issues, is detrimental to both sides, and benefits no one in the world.
China has one of the strictest and most thoroughly implemented anti-drug policies in the world. Fentanyl is primarily a U.S. problem. Out of humanitarian concern, China has provided support for the U.S. in dealing with fentanyl. At the request of the U.S., China announced in 2019 that it would officially place the entire class of fentanyl-related substances under control, becoming the first country in the world to do so. China and the U.S. have carried out extensive anti-narcotics cooperation and achieved significant results, which is widely recognized. The U.S. should view and address its own fentanyl issue objectively and rationally, rather than frequently resorting to tariff threats against other countries. Imposing tariffs is not constructive and will inevitably affect and undermine future cooperation between the two sides on drug control.
China urges the U.S. to correct its wrong practices, uphold the hard-won positive momentum in China-U.S. cooperation on drug control, and promote the stable, healthy, and sustainable development of China-U.S. relations.
Spokesperson of the Ministry of Commerce Issues Statement on the U.S. Announcement of a 10% Tariff on Chinese Goods
On the evening of February 1 (U.S. Eastern Time), the White House released a factsheet announcing a 10% tariff on Chinese goods imported into the U.S., citing issues such as fentanyl. China is extremely dissatisfied and firmly opposed to this.
The U.S.’s unilateral imposition of tariffs seriously violates WTO rules. This action not only fails to address its own problems, but also disrupts normal China-U.S. economic and trade cooperation. In response to the U.S.’s wrong practices, China will file a lawsuit at the WTO and will take corresponding countermeasures to firmly defend its own interests.
China hopes that the U.S. will objectively and rationally view and address its own issues related to fentanyl, among others, instead of frequently threatening other countries with tariffs. China urges the U.S. to correct its erroneous approach, work with China in the same direction on the basis of equality, mutual benefit, and mutual respect, face the problems squarely, engage in candid dialogue, enhance cooperation, and manage differences.
Ministry of Public Security Spokesperson Expresses Strong Dissatisfaction and Firm Opposition to the U.S. Announcement of a 10% Tariff on Chinese Goods, Citing Fentanyl
Question: On February 1 (U.S. Eastern Time), the U.S. announced a 10% tariff on Chinese goods. What is China’s comment?
Answer: The U.S. has used the fentanyl issue as an excuse to impose a 10% tariff on Chinese goods. China is extremely dissatisfied with and firmly opposed to this.
China is one of the countries with the strictest and most thoroughly enforced anti-drug policies. As a State Party to the three United Nations drug control conventions, China has consistently fulfilled its international anti-drug obligations and actively conducted international anti-drug cooperation with countries worldwide, including the United States. Even though there is no large-scale abuse problem within China itself, China, out of humanitarian goodwill and at the request of the U.S., became the first country in the world to officially place the entire class of fentanyl-related substances under control in 2019, whereas the U.S. has yet to permanently place the entire class of fentanyl under control. Since China’s all-class scheduling, we have not received any further reports from the U.S. of seizures of such substances originating from China.
In recent years, China and the U.S. have carried out extensive practical cooperation in anti-drug work. This includes the control of substances, intelligence exchange, case collaborations, removing online advertisements, technological exchanges in drug detection, and multilateral interactions, all of which have yielded many visible results that are evident to all.
The root cause of the U.S. fentanyl crisis lies within the United States itself. Reducing domestic drug demand and strengthening law enforcement cooperation are the fundamental solutions. Constantly shifting blame to other countries does nothing to solve the real problem and will seriously harm China-U.S. cooperation and the foundation of mutual trust in the anti-drug field. China urges the U.S. to correct its wrong approach, safeguard the hard-won positive momentum of China-U.S. cooperation on drug control, and promote the stable, healthy, and sustainable development of China-U.S. relations.
On the basis of the above responses, the Chinese government has adopted a series of countermeasures.
1. Filing a Lawsuit at the WTO
Ministry of Commerce Spokesperson Answers Questions Regarding China’s WTO Complaint Over U.S. Tariff Measures
Question: It is reported that China has initiated a lawsuit at the World Trade Organization concerning the U.S. imposition of a 10% tariff on Chinese products. Could you provide more details?
Answer: On February 1, the U.S. announced a 10% tariff on certain Chinese products. In order to safeguard its legitimate rights and interests, China has filed a complaint against these U.S. tariff measures under the WTO dispute settlement mechanism.
The U.S. imposition of tariffs on Chinese exports seriously violates WTO rules. The nature of such actions is egregious and constitutes typical unilateralism and trade protectionism. These actions by the U.S. severely undermine the rules-based multilateral trading system, damage the foundation of China-U.S. economic and trade cooperation, and disrupt the stability of global industrial and supply chains. The U.S. has repeatedly placed unilateralism above multilateralism, drawing strong condemnation from many WTO members. China firmly opposes the U.S. actions and urges the U.S. to immediately rectify its mistakes.
China is a staunch supporter of and a major contributor to the multilateral trading system. We are willing to work with other WTO members to jointly respond to the challenges posed by unilateralism and trade protectionism to the multilateral trading system, and to safeguard the orderly and stable development of international trade.
2. The Customs Tariff Commission of the State Council: Imposing Tariffs on Certain Energy, Machinery, and Automotive Products Originating in the U.S.
Announcement of the Customs Tariff Commission of the State Council on Imposing Tariffs on Certain Imported Goods Originating in the United States
(Tax Commission Announcement [2025] No. 1)On February 1, 2025, the U.S. government announced, citing issues such as fentanyl, that it would impose a 10% tariff on all goods imported from China. The U.S.’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization, not only failing to address its own problems but also undermining normal economic and trade cooperation between China and the U.S.
Pursuant to the Customs Law of the People’s Republic of China, the Foreign Trade Law of the People’s Republic of China, and other relevant laws, regulations, and fundamental principles of international law, and with the approval of the State Council, effective February 10, 2025, tariffs will be imposed on certain goods originating in the United States. The relevant details are as follows:
A 15% tariff will be imposed on coal and liquefied natural gas. For the specific range of goods, see Attachment 1.
A 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement automobiles, and pickup trucks. For the specific range of goods, see Attachment 2.
For imported goods originating in the U.S. as listed in the Attachments, an additional tariff will be imposed on top of the current applicable tariff rate. Current policies on bonded and duty-free imports remain unchanged, and no exemptions will be granted for the tariffs added this time.
3. MOFCOM and General Administration of Customs Announce Export Controls on Critical Metals Tungsten, Tellurium, Bismuth, Molybdenum, and Indium
Ministry of Commerce Spokesperson Answers Questions Regarding Export Controls on Tungsten and Other Items
Question: On February 4, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement on export controls on tungsten and related items. What are China’s considerations in introducing this policy?
Answer: On February 4, China’s Ministry of Commerce, together with the General Administration of Customs, issued an announcement on imposing export controls on tungsten and related items, placing export controls on 25 rare metal products such as ammonium paratungstate and related technologies. This policy took effect as of the date of issuance. We have already notified relevant countries and regions beforehand.
Imposing export controls on tungsten and other related items is a common international practice. As the world’s major producer and exporter of tungsten and other related items, China has long been committed to fulfilling its international obligations on non-proliferation and other matters. In accordance with the need to safeguard national security and interests, and based on law, China imposes export controls on specific items. This latest addition of controlled items reflects a management philosophy that balances development and security, helping to better safeguard national security and interests, better fulfill obligations such as non-proliferation, and ensure the security and stability of global industrial and supply chains. Exports that meet the relevant regulations will be licensed.
4. Ministry of Commerce: U.S. Companies PVH and Illumina Have Been Added to the “Unreliable Entity List”
Ministry of Commerce Spokesperson Answers Questions on Including Two U.S. Companies in the Unreliable Entity List
Question: On February 4, 2025, China placed U.S. companies PVH and Illumina on its “Unreliable Entity List.” What are the considerations?
Answer: Upon investigation, it has been found that U.S. PVH Corporation and Illumina have violated normal market transaction principles by suspending normal transactions with Chinese enterprises and adopting discriminatory measures that seriously damage the legitimate rights and interests of Chinese enterprises. In order to safeguard national sovereignty, security, and development interests, and pursuant to the Foreign Trade Law of the People’s Republic of China, the National Security Law of the People’s Republic of China, the Law of the People’s Republic of China on Countering Foreign Sanctions, and other relevant laws, as well as the provisions of the Regulations on the Unreliable Entity List, the interdepartmental working mechanism on the Unreliable Entity List has decided to include the above two entities in the Unreliable Entity List. In accordance with relevant laws and regulations, corresponding measures will be taken against these entities.
China has always handled matters related to the Unreliable Entity List prudently, and it only applies to a very small number of foreign entities that endanger our national security. Foreign entities that adhere to honesty and compliance need not worry at all. As always, the Chinese government welcomes enterprises from all over the world to invest and do business in China and is committed to providing a stable, fair, and predictable business environment for law-abiding foreign-invested enterprises operating in China.
5. State Administration for Market Regulation Launches Anti-Monopoly Investigation into Google
China’s anti-monopoly enforcement agency, the State Administration for Market Regulation (SAMR), announced on its official website a brief statement indicating that it has opened an investigation into Google for alleged violations of the Anti-Monopoly Law of the People’s Republic of China.
Overall Analysis of the Countermeasures
In general, these countermeasures appear largely symbolic.
China imports little coal, LNG, and crude oil from the U.S., sourcing more from Australia, Russia, and the Middle East. It also imports relatively few agricultural machinery, large-displacement automobiles, and pickup trucks from the U.S.
China’s newly announced tariffs will affect about 8.5% of total U.S. exports to China in 2024.
When it comes to large-displacement vehicles, German automakers are once again bearing the brunt—BMW and Mercedes are particularly impacted. U.S. car manufacturers, on the other hand, face minimal effects: overall, American imported vehicles still hold a certain share of China’s import car market, although their sales have been on the decline.Ford exported fewer than 2,000 vehicles to China last year, while GM shipped only about 300.
GM owns many automobile brands. Among these, numerous sedan and SUV models under Buick, Cadillac, and Chevrolet are produced locally in China. However, certain Chevrolet models—as well as vehicles from GM’s commercial vehicle brand GMC and its off‐road brand Hummer—rely on imports for sales in the Chinese market (for example, the TAHOE and GMC Yukon).
Another major American automaker, Ford, sells its Mustang fuel vehicles in China exclusively as imports. The classic pickup truck, the Ford F-150 Raptor, sold in China is also produced in the United States and is nicknamed the “Ford money printer” within the industry.
Additionally, vehicles from Chrysler’s brands, such as Dodge and Jeep, must also enter China via import channels.
According to data recently released by the China Passenger Car Association, By country of origin, in 2024, American vehicles ranked third in Chinese import car sales—behind Japan and Germany—with 109,300 units imported, reflecting a 13% year-on-year decline.
In Yiche’s 2024 Top 40 list of imported vehicle sales in China, American vehicles are nearly absent. This is partly because American automaker brands have established joint ventures in China to achieve local production, and partly because most of the imported models are large-displacement vehicles, which are difficult to register and thus affect their sales.
As for Tesla, the company remains untouched by the new tariffs. It sent around 2,000 Model S and Model X units to China, but since EVs are not included in this round of tariffs, it stays exempt.
As for the five minor metals under new export controls, the U.S. dependence on China for these—tungsten, tellurium, bismuth, molybdenum, and indium—is not as high as it is for gallium, germanium, and antimony.
Regarding the two U.S. companies added to the Unreliable Entity List:
PVH had already been under investigation(see here and here), which was expected. On January 16, it was stated that an investigation found that PVH indeed violated the provisions of the Unreliable Entity List and that its executives would be interviewed again. It is thus speculated that authorities may have been waiting for Trump to impose tariffs before formally announcing this decision.
Illumina is believed to be targeted in retaliation for damage caused to the Chinese biotechnology company MGI (a subsidiary of BGI), resulting from Illumina’s lobbying in the U.S. to crack down on MGI (similar to Micron and Fujian Jinhua).
Competition between Illumina and MGI began in 2019. In 2019, Illumina filed patent infringement lawsuits against MGI in Germany and Denmark, among other places, seeking a sales ban on MGI’s products. MGI responded by filing a countersuit in the U.S., accusing Illumina of infringing its patent on “dual-color sequencing technology.”
Eventually, the U.S. District Court for the District of Delaware found that Illumina had willfully infringed the patent, awarding MGI US$334 million in damages and declaring that Illumina’s countersuit patents were invalid. The two parties reached a settlement in which Illumina paid US$325 million and pledged not to file new lawsuits in the U.S. for three years.
In 2024, Illumina spent US$530,000 in a single quarter lobbying Congress, pushing to include clauses in the Biosafety Act and the National Defense Authorization Act that, under the banner of “national security,” would prohibit U.S. agencies from purchasing BGI equipment. Specifically, Illumina hired Avenue Solutions and other top firms, paying US$60,000 in one quarter to focus on the Biosafety Act. In September 2024, the company hired a former aide to House Majority Leader Steve Scalise at a high salary, directly lobbying during the National Defense Authorization Act review process. Illumina also joined forces with the Biotechnology Innovation Organization (BIO) and other groups to conduct a campaign that framed the technology competition as “China’s systematic threat to genetic data.”
Regarding the anti-monopoly investigation into Google:
Given Google’s limited presence in China, there is speculation that this investigation may relate to the Android operating system, which restricted mobile phone manufacturers and users within the EU from choosing other competing products. China has for a long time been concerned about Chinese software/applications's reliance on Android. The violation to China's antitrust law could lead to heavy fines amounting to 10% of Google's annual revenue in China.
However, considering that Google has no physical presence in China and offers limited products and services in the country, such a penalty would be largely symbolic. At this stage, the authorities have merely launched an investigation, keeping the leverage in their own hands for potential future actions.
The Observer Network (观察者网), which aligns closely with China’s official stance, also shares a similar view. It argues that China’s response, while firm, remains measured and strategic. Beijing’s countermeasures are designed to signal its resolve to defend its interests without provoking excessive escalation. It leaves room for potential negotiations and diplomatic maneuvering in the future.
“In response to the Trump administration’s “tariff stick,” China swiftly implemented a tit-for-tat trade retaliation against the U.S., heightening market concerns. Multiple foreign media outlets have observed that, compared to the U.S.’s across-the-board tariff hike, China’s countermeasures appear to be relatively restrained and carefully calculated. They suggest that China aims to send a signal to the U.S. while avoiding excessive damage, thus preserving time and space for future negotiations between both sides.
Some scholars also point out that while China has adopted a moderate response for now, the trajectory of the situation depends on the next steps taken by the U.S. If Trump interprets China’s reaction as a cautious move that leaves room for negotiation, it could lay the groundwork for dialogue. However, if he sees it as a direct challenge, the U.S. government may introduce additional trade restrictions in retaliation, further escalating the conflict.”
Classic U.S.: “My addiction is somehow your responsibility” Foreign Policy 101
Actions: U.S. invades Mexico and Canada for not interdicting drugs
Counteractions, same logic: Mexico, or China, invades U.S. to eliminate domestic drug use.