China keeps door open for talks with US in measured reaction to tariff hike

But analysts warn that Beijing's response should not be seen as a form of weakness

- Aw Cheng Wei

Beijing has signaled its willingness to keep the door open for negotiation with the US by not striking back with retaliatory tariffs after US President Donald Trump signed into effect a sweeping 10 percent tax hike on all goods from China.

Instead, the Chinese ministries of foreign affairs and commerce said separately on Feb 2 that Beijing "firmly opposes" the new tariffs and would take the case to the World Trade Organization - a move that analysts said is largely symbolic, given that the US has since 2019 curtailed the multilateral body's power to enact countermeasures.

Beijing will also take "corresponding countermeasures to resolutely safeguard its rights and interests", the ministries added.

On Feb 2, Mr Trump signed orders imposing a 10 percent tariff hike on all Chinese goods into the US and a 25 percent increase on Canadian and Mexican imports, as these countries had allegedly not addressed his concerns about illegal immigration and drug trafficking.

The taxes are set to kick in on Feb 4.

The US shares a border with Canada and Mexico, and it blames China for producing the majority of chemicals used to make fentanyl, a form of opioid.

China's response this time to Mr Trump's tariffs was starkly different from July 2018, when the first Trump administration slapped duties of 25 percent on some US$34 billion (S$46.2 billion) worth of Chinese imports such as aviation parts, hard disks and cars.

Beijing retaliated with its own tariffs on US$34 billion worth of American imports, including farming and aquatic products, as well as cars.