Washington D.C. – Chinese Premier Li Qiang delivered sharp criticism of unilateralism and protectionist trade policies on Monday, warning against returning to “the law of the jungle” in international commerce. His remarks at the Association of South East Asian Nations Summit in Kuala Lumpur came just one day after significant developments in the China US trade deal negotiations, with Washington confirming that the threatened 100% tariff on Chinese goods is now “off the table.”
Initial Consensus Reached on China US Trade Deal
The timing of Li’s statement is particularly significant as it follows announcements from both Beijing and Washington that they have reached an “initial consensus” on a potential China US trade deal. This breakthrough emerged after intensive two-day negotiations between Chinese Vice Premier He Lifeng and the US delegation, led by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, on the sidelines of the ASEAN summit.
China confirmed through official channels that a “basic consensus” has been established regarding the China US trade deal framework, marking a crucial step forward in resolving the prolonged trade tensions between the world’s two largest economies.
Premier Li’s Strong Message Against Unilateralism
Speaking at the summit, Premier Li emphasized that “economic globalisation and multipolarity are irreversible,” adding that “the world should not return to the law of the jungle where the strong bully the weak.” Though Li did not explicitly mention the United States, his comments were widely interpreted as a direct reference to the Trump administration’s tariff policies that have affected numerous countries, particularly China.
These remarks underscore China’s position that the China US trade deal must be based on mutual respect and multilateral principles rather than coercive measures. Li’s statement reflects Beijing’s broader strategy of positioning itself as a defender of free trade and international cooperation.
100% Tariff Threat Eliminated
US Treasury Secretary Scott Bessent provided crucial details about the China US trade deal progress in an interview on Sunday, confirming that President Donald Trump’s threat to impose an additional 100% tariff on Chinese goods “has gone away.” This represents a significant de-escalation in trade tensions.
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Bessent explained that the proposed tariffs were originally Trump’s response to Beijing’s expanded export controls on rare earth materials, which are critical for global industries including electronics and defense. “I would believe that the—so it would be an extra 100% from where we are now, and I believe that that is effectively off the table,” Bessent stated. “I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
Trump-Xi Meeting Set for Thursday
The progress on the China US trade deal sets the stage for a crucial face-to-face meeting between President Donald Trump and Chinese President Xi Jinping scheduled for Thursday in South Korea. This high-stakes summit aims to finalize an agreement that would effectively end the ongoing trade war between the two nations.
Trump expressed optimism about reaching a comprehensive China US trade deal during his travel to Japan, a close US ally. The president indicated his hopefulness about the Thursday meeting’s outcome, suggesting that both sides are committed to finding common ground.
Significance of the Two-Day Negotiations
The recent two-day meeting between Chinese and American officials proved instrumental in advancing the China US trade deal. The discussions addressed multiple contentious issues, including tariff structures, export controls, and broader trade framework agreements. Both delegations worked intensively to bridge gaps and establish a foundation for the upcoming Trump-Xi summit.
The negotiations took place during the ASEAN Summit in Malaysia’s Kuala Lumpur, providing a neutral setting for these critical discussions. The choice of venue during a multilateral gathering underscored the global significance of the China US trade deal and its potential impact on international trade dynamics.
Global Implications
The potential China US trade deal carries enormous implications for the global economy. As the world’s two largest economies, any agreement between Washington and Beijing would likely stabilize international markets, restore business confidence, and potentially reshape global supply chains that have been disrupted by years of trade tensions.
The resolution of trade disputes through the China US trade deal could also signal a return to more predictable international trade relations, benefiting not only the two nations directly involved but also countries throughout Asia, Europe, and beyond that have been affected by the trade war’s spillover effects.
With Thursday’s meeting approaching, the international community watches closely as Trump and Xi prepare to potentially conclude one of the most significant trade negotiations in recent history.
