23/04/2025
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23/04/2025
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THE US tariff policy recently sparked global controversy, due to the United States imposing unusually high tariffs on China. China has made it clear that it does not seek to engage in any tariff or trade war. However, it has also emphasized that it is not afraid of such a war. In this context, I would like to explain to our Kuwaiti friends why China is not afraid of a tariff war.
The solid foundations and pillars of China’s economic development: China is the only country in the world that possesses all the industrial categories listed in the United Nations Industrial Classification. This gives China a manufacturing advantage that other countries cannot easily match in the short term. Relying on its well-established supply chains, Tesla’s Shanghai factory has an annual production capacity of 950,000 vehicles, nearly half of Tesla’s global production.
China’s strong economic resilience: In 2024, total retail sales of consumer goods in China reached 48.8 trillion yuan (approximately 2.05 trillion Kuwaiti dinars), with consumption contributing 44.5 percent to economic growth. Domestic consumption, rather than exports, is now the primary driver of the Chinese economy. China’s foreign trade structure is steadily improving, and its exports to the United States account for only 14.7 percent of its total exports. In the first quarter of 2025, China’s GDP grew by 5.4 percent, which showcased the resilience and strength of the Chinese economy. China is a staunch advocate of international fairness and justice. It prioritizes the common interests of all nations. Committed to promoting high-level opening-up, China shares its opportunities with the world. It has become a major trading partner for over 150 countries and regions, and has signed more than 20 free trade agreements with over 30 nations and regions.
On December 1, 2024, China granted zero tariffs on the goods of 43 least developed countries (LDCs) with diplomatic relations, resulting in an 18.1 percent increase in their exports to China. In contrast, the United States uses tariffs as a weapon for exerting maximum pressure and pursuing its own interests. This action seriously infringes on the legitimate rights and interests of other countries, flagrantly violates WTO rules, and severely damages the rules-based multilateral trading system. It also destabilizes the global economic order, going against the interests of the entire world.
China, however, has taken the necessary measures to not only protect its own interests but also defend international justice, fairness, and the common interests of all countries. The US tariff policy harms others rather than benefiting itself. In today’s highly integrated global industrial and supply chains, imposing high tariffs disrupts these networks, reduces the efficiency of various industries, and negatively impacts the economic development of all countries.
The US’s imposition of tariffs and its isolationist policies will harm its cooperation with other countries and weaken the foundations of international collaboration. Its decisions have faced strong opposition and countermeasures from many countries, including its own allies. Research conducted by the US-China Business Council shows that the first trade war launched by the United States against China in 2018 resulted in the loss of 245,000 jobs in the US. After the US announced a new tariff policy in early April 2025, former US Treasury Secretary Lawrence Summers warned that it could lead to losses of $30 trillion. Also, JPMorgan raised the probability of a global recession to 60 percent.
There is a Chinese proverb, “When the sun sets in the east, the west rises.” China’s economy is closely integrated with the economies of the Gulf Cooperation Council (GCC) countries, including Kuwait. As the largest trading partner of the GCC, China is ready to collaborate with the GCC to expedite the completion of Free Trade Agreement negotiations and jointly promote the development of economic and trade cooperation between China, the GCC, and Arab countries. China is also committed to strengthening practical cooperation with Kuwait, guided by the important consensus reached by the leaders of the two friendly countries, for the benefit of both the Kuwaiti and Chinese peoples.
The solid foundations and pillars of China’s economic development: China is the only country in the world that possesses all the industrial categories listed in the United Nations Industrial Classification. This gives China a manufacturing advantage that other countries cannot easily match in the short term. Relying on its well-established supply chains, Tesla’s Shanghai factory has an annual production capacity of 950,000 vehicles, nearly half of Tesla’s global production.
China’s strong economic resilience: In 2024, total retail sales of consumer goods in China reached 48.8 trillion yuan (approximately 2.05 trillion Kuwaiti dinars), with consumption contributing 44.5 percent to economic growth. Domestic consumption, rather than exports, is now the primary driver of the Chinese economy. China’s foreign trade structure is steadily improving, and its exports to the United States account for only 14.7 percent of its total exports. In the first quarter of 2025, China’s GDP grew by 5.4 percent, which showcased the resilience and strength of the Chinese economy. China is a staunch advocate of international fairness and justice. It prioritizes the common interests of all nations. Committed to promoting high-level opening-up, China shares its opportunities with the world. It has become a major trading partner for over 150 countries and regions, and has signed more than 20 free trade agreements with over 30 nations and regions.
On December 1, 2024, China granted zero tariffs on the goods of 43 least developed countries (LDCs) with diplomatic relations, resulting in an 18.1 percent increase in their exports to China. In contrast, the United States uses tariffs as a weapon for exerting maximum pressure and pursuing its own interests. This action seriously infringes on the legitimate rights and interests of other countries, flagrantly violates WTO rules, and severely damages the rules-based multilateral trading system. It also destabilizes the global economic order, going against the interests of the entire world.
China, however, has taken the necessary measures to not only protect its own interests but also defend international justice, fairness, and the common interests of all countries. The US tariff policy harms others rather than benefiting itself. In today’s highly integrated global industrial and supply chains, imposing high tariffs disrupts these networks, reduces the efficiency of various industries, and negatively impacts the economic development of all countries.
The US’s imposition of tariffs and its isolationist policies will harm its cooperation with other countries and weaken the foundations of international collaboration. Its decisions have faced strong opposition and countermeasures from many countries, including its own allies. Research conducted by the US-China Business Council shows that the first trade war launched by the United States against China in 2018 resulted in the loss of 245,000 jobs in the US. After the US announced a new tariff policy in early April 2025, former US Treasury Secretary Lawrence Summers warned that it could lead to losses of $30 trillion. Also, JPMorgan raised the probability of a global recession to 60 percent.
There is a Chinese proverb, “When the sun sets in the east, the west rises.” China’s economy is closely integrated with the economies of the Gulf Cooperation Council (GCC) countries, including Kuwait. As the largest trading partner of the GCC, China is ready to collaborate with the GCC to expedite the completion of Free Trade Agreement negotiations and jointly promote the development of economic and trade cooperation between China, the GCC, and Arab countries. China is also committed to strengthening practical cooperation with Kuwait, guided by the important consensus reached by the leaders of the two friendly countries, for the benefit of both the Kuwaiti and Chinese peoples.
By Zhang Jianwei
Ambassador of People’s Republic of China to Kuwait
Ambassador of People’s Republic of China to Kuwait
