China vows to stay 'safe and promising land' for foreign investment

China vows to stay 'safe and promising land' for foreign investment

Beijing has retaliated against levies at the same level announced by US President Donald Trump on what he called 'liberation day'
Beijing has retaliated against levies at the same level announced by US President Donald Trump on what he called 'liberation day'. Photo: WANG Zhao / AFP
Source: AFP

A top Chinese official has vowed to protect US firms and pledged his country will remain a "promising land" for foreign investment, Beijing said Monday, after it slapped 34 percent tariffs on US imports.

China retaliated last week against levies at the same level announced by US President Donald Trump on what he called "liberation day".

It also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in magnetic resonance imaging -- and yttrium, which is used in consumer electronics.

Vice commerce minister Ling Ji told a panel of US company representatives on Sunday that the tariffs "firmly protect the legitimate rights and interests of enterprises, including American companies", his ministry said.

Those levies -- which come into effect on Thursday -- "are aimed at bringing the United States back onto the right track of the multilateral trade system", he told the representatives, including of GE Healthcare and Medtronic.

Read also

Equities savaged as China retaliation to Trump tariffs fans trade war

Also present was a representative of electric vehicle giant Tesla, run by close Trump advisor and tech billionaire Elon Musk, who has extensive business interests in China.

"The root cause of the tariff issue lies in the United States," Ling said.

He urged the firms to "take pragmatic actions to jointly maintain the stability of global supply chains and promote mutual cooperation and win-win outcomes".

The United States exported $144.6 billion in goods to China in 2024, much less than the $439.7 billion it imported, Commerce Department data shows.

Among its exports, key sectors include electrical and electronic equipment and various fuels, alongside oilseed and grains.

Trading floors were overcome by a wave of selling on Monday, in response to the showdown.

The selling in Asia was across the board, with no sector unharmed -- tech firms, car makers, banks, casinos and energy firms all felt the pain as investors abandoned riskier assets.

Read also

Leading garment producer Bangladesh holds crisis talks on US tariffs

Among the biggest losers, Chinese e-commerce titans Alibaba tanked more than 14 percent and rival JD.com shed 13 percent, while Japanese tech investment giant SoftBank dived more than 10 percent and Sony gave up 9.6 percent.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.