China Escalates Trade War with U.S., Targets Services and Boeing Amidst Heightened Tensions

April 17, 2025
China Escalates Trade War with U.S., Targets Services and Boeing Amidst Heightened Tensions
  • New export controls from China will necessitate special licenses for exporting critical minerals vital for U.S. technology, impacting key industries such as semiconductors and missile-defense systems.

  • China is expanding its trade war to encompass the U.S. services sector, proposing restrictions on American legal consultancy firms and launching investigations into the monopoly advantages of U.S. companies.

  • On April 15, 2025, China ordered its airlines to stop taking deliveries of Boeing jets and to halt purchases of related equipment from U.S. suppliers, exacerbating Boeing's financial troubles amid ongoing quality-control concerns.

  • In response to ongoing trade disputes, President Trump has increased tariffs on select Chinese goods by as much as 245%, prompting China to retaliate with additional duties of up to 125% on U.S. imports.

  • Analysts anticipate that Beijing will continue to leverage non-tariff measures to strengthen its position ahead of negotiations with the Trump administration, potentially targeting major U.S. companies like Apple and Tesla.

  • Beijing is shifting its focus from tariffs on goods to non-tariff measures, including export controls on rare-earth minerals and antitrust investigations targeting U.S. companies such as DuPont and Google.

  • In 2024, U.S. services exports to China reached $55 billion, resulting in a significant trade surplus for the U.S. in services, particularly in travel and education, with over 270,000 Chinese students studying in the U.S.

  • China's recent initiatives to limit imports of U.S. films and discourage travel to the U.S. could significantly affect sectors such as entertainment, tourism, and education, with an estimated $24 billion at risk due to potential travel restrictions.

  • While condemning U.S. tariffs as bullying, China has indicated a willingness to negotiate, asserting that discussions must occur on equal terms.

  • In February 2025, China placed several U.S. businesses on an 'unreliable entity' list, restricting their trading and investment activities within China, affecting companies like PVH and Illumina.

  • Chinese authorities have issued notices to apprehend individuals allegedly involved in cyberattacks against China for the U.S. National Security Agency, reflecting heightened tensions between the two nations.

  • The White House has expressed that Trump is open to negotiations with China but expects China to take the initiative in resolving the ongoing trade conflict.

Summary based on 1 source


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