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China said it is ready for an “unexpected shock” ahead of US President Donald Trump’s impose high tariffs on the world’s second-largest economy and rival superpower.
Prime Minister Li Qiang, head of China’s economy under Leader XI Jinping, told foreign business leaders gathered in Beijing on Sunday that there was growing uncertainty and instability, but said China would choose the “right path” of globalization and multilateralism.
“There’s preparation for the possibility of an unexpected shock. This comes mainly from external sources, of course,” says Li.
The United States is expected to impose additional taxes on imports from China on April 2, when countries around the world announce “mutual tariffs.”
The tone of caution from the Chinese Prime Minister comes as Beijing seeks to improve consumer and investor sentiment, while also preparing potential retaliation measures against future U.S. tariffs and sanctions.
Since taking office, Trump has already slapped 20% tariffs on goods from China. The White House says it is designed to pressure Beijing to crack down on its own against companies that produce ingredients for fentanyl, a synthetic opioid that is deadly when triggered by the reproductive organs of US drug use.
Li’s comments stem from countries and businesses supporting the effects of mutual tariffs amid expectations that Trump does not tend to give exemptions before the deadline.
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Since Trump took office, there has been little top-level talks between the US and China.
Trump said last week that XI will be coming to the US in a “not too distant future,” but those familiar with the conversations in Washington and Beijing said there was no discussion about XI’s travel to the US.
Later Sunday, Lee is expected to meet Steve Daines, a Republican Sen. from Montana, who is very close to Trump. Daines, who previously worked in China in business, met his Deputy Prime Minister Lifeng on Saturday at a rare meeting between senior US lawmakers and Chinese officials.
Daines’ office said he used his talks with him to repeatedly use Trump’s appeal to China to stop the flow of chemicals used to make fentanyl. The senator added, “he expressed his hope that even higher levels of consultations between the US and China will take place in the near future.”
