The National Development and Reform Commission (NDRC), China's top economic planner, held a symposium in recent days with representatives of private companies on trade-ins of large-scale equipment and consumer products, according to a post seen on Monday on the NDRC's WeChat account.

The meeting added to a series of moves by the Chinese central government and departments to promote the upgrading of consumer items. Since the sweeping plan to shore up consumption was launched in March, spending on consumer goods has jumped, data from the country's e-commerce platforms showed. Sales of some items doubled during the just-concluded five-day May Day holidays that ended on Sunday.

Observers said that the spending spree presages a stepped-up recovery in the consumer market, which only grew mildly in the first quarter. Analysts expect that the trade-in fueled consumption could open up a huge market worth trillions of yuan throughout the year. They expect retail sales to grow more than 5 percent in 2024, helping the economy to navigate through rising headwinds and meet the GDP growth target of about 5 percent.

Private firms that took part in the NDRC meeting included battery maker Tianneng Group, equipment manufacturer Xizi UHC and Canny Elevator. Company attendees highlighted the huge market potential of equipment upgrades, which could help them improve their technology and competitiveness. Upgrades could also improve living standards and enhance the standards of public services such as education and healthcare, the NDRC post noted.

The meeting aligns with an overall plan the State Council, the country's cabinet, released in March, which aims to promote the large-scale renewal of equipment and trade-ins of consumer goods.

Since then, various Chinese departments have announced trade-in stimulus plans for different consumer goods, including vehicles, home appliances, industrial equipment and home decoration goods. The overarching plan has also been endorsed by dozens of localities such as Shanghai, East China's Zhejiang and Shandong provinces, and Central China's Henan Province, which issued corresponding detailed measures to fast-track the implementation of the plan.

These concrete efforts have borne fruit, the Global Times learned.

A spokesperson of e-commerce platform Suning told the Global Times on Monday that the new plan has "largely unleashed consumer vitality in the home appliance market."

The platform provided consumers who joined the trade-in plan during the May Day holidays with up to 5,000 yuan ($693.73) in subsidies and 10 percent price discounts on new consumer items.

According to data provided by Suning, sales of green, energy-saving appliances more than doubled during the May Day holidays thanks to the trade-in policy, while orders for home appliance renovations and replacements expanded by 96 percent year-on-year. Orders for replacement air conditioners jumped by 78 percent.

Another Chinese e-commerce platform, JD.com Inc, has not released its to-date sales data. But according to a statement the company sent to the Global Times on Monday, it is estimated that more than 20 million users will participate in the company's home appliance and home furnishings trade-in program, with more than 30 million units of used goods being recycled so far in 2024.

A number of Chinese vehicle makers including BYD, Xpeng and Nio have also joined the trade-in program, providing subsidies for consumers who scrapped old cars in exchange for new-energy vehicles, the Securities Times reported on Monday.

Observers said that consumer goods such as home appliances and vehicles are the leaders in taking advantage of the trade-in policy. The effects of the policy will gradually expand to large commodities such as industrial products and large-scale equipment.

He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Monday that the impact of the trade-in policy will be more apparent in the second half of the year.

"It is estimated that the policy could drive China's GDP by less than 1 percent in 2024, which is quite valuable," he said, calling for more substantial inputs from the government and companies to consolidate the result.

Analysts pointed out an imbalance in the recovery of China's consumption, as services consumption has been picking up while that of consumer goods remains "modest."

As the trade-in program is set to inject new vitality into goods consumption, He Weiwen projected that retail sales will accelerate in the second quarter and expand by 5-7 percent this year.

Retail sales rose 4.7 percent year-on-year to 12.03 trillion yuan in the first quarter, National Bureau of Statistics data showed.

China's Ministry of Commerce (MOFCOM) said on Wednesday it firmly opposes Washington's abuse of export controls and relentless attacks on certain Chinese firms, after the US revoked chip export licenses to Huawei amid suppression of China's tech sector.

The US revoked licenses that allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to Huawei, Reuters reported on Tuesday, citing people familiar with the matter.

The US Commerce Department confirmed that it had revoked some licenses, without specifying which, according to the report.

The US export restrictions on the purely civilian use of chips are a typical act of economic coercion, which violates WTO rules and harms the interests of US firms, the MOFCOM said.

The actions taken by the US seriously violate its commitments to "not seeking decoupling from China" and "not hindering China's development" and they contradict the claim of "accurately defining national security," the MOFCOM added.

The move came after Huawei launched its first artificial intelligence-enabled laptop last month that uses Intel's new Core Ultra 9 processor, which drew fire from some US politicians, who claimed that such licenses had contributed to Huawei's resurgence.

Huawei was put on a US trade restriction list in 2019 meaning that the company's suppliers have to seek a special, difficult-to-obtain license before shipping. The licenses allow Qualcomm to sell older 4G chips for Huawei's handsets and Intel to ship central processors to Huawei for use in its laptops, Reuters reported.

US House Foreign Affairs Committee Chairman Michael McCaul confirmed the administration's decision in an interview on Tuesday. He said the move is key to preventing China from developing advanced artificial intelligence (AI), Bloomberg reported.

Experts said that it is impossible for the US to stop China's development of advanced AI through these restrictions, and the measures taken by the US will only make Chinese companies more determined to develop alternatives.

These export restrictions mainly affect end products, which may have a short-term impact on the sales of some low-end Huawei phones and some laptops, but the long-term impact will not be significant, Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Wednesday.

Xiang said that the US sanctions have forced Huawei to become even stronger. Huawei last year launched a new phone using its self-developed Kirin 9000S chip, a breakthrough that it was forced to make under the US sanctions.

As for laptop chips, if they are truly cut off, it will also make Huawei more determined to develop its own computer chips, Xiang said.

Despite the US restrictions, Huawei's revenue continues to grow rapidly. In the first quarter, Huawei achieved revenue of 178.45 billion yuan ($24.69 billion), up 36.66 percent year-on-year. Net profit rose more than fivefold to 19.65 billion yuan.

According to market research firm Canalys, in the first quarter, Huawei regained the top spot in the Chinese mainland smartphone market after 13 quarters, with a share of 17 percent.

Ma Jihua, a veteran telecom industry analyst, said that in response to the increasing chip capabilities of Chinese technology companies, the US has no more cards to play except to constantly patch up existing restrictions, a move that shows its bitterness in the face of China's technological advances.

The tightening of restrictions is merely a maneuver by certain US politicians to showcase their toughness on China. The actual impact is likely to be minimal and the effectiveness of the restrictions will diminish over time, Ma told the Global Times on Wednesday.

Forcing malicious competition against China, decoupling and cutting supply chains will only result in mutual harm, experts said.

As Chinese companies are progressing toward self-sufficiency, the performance of US companies is severely affected by the restrictions, resulting in weak demand for their products.

Bloomberg reported that Huawei is no longer among the top 10 customers of Qualcomm, and it is also not on Intel's list of top customers.

In April, Intel said its second-quarter revenue and profit would be below market estimates as it faces weak demand for its traditional data center and personal computer chips and trails in the surging market for AI components.

China's Ministry of Finance and the Cyberspace Administration of China have released a series of interim measures for data security management by accounting firms, effective from October 1, 2024, with the aim of standardizing data processing activities, according to an announcement by the finance ministry on Friday.

According the announcement, the interim measures are a refinement of the relevant provisions for the national network and data security management in the certified public accountant (CPA) profession, providing a basis for CPA firms to carry out data security management activities.

The measures are conducive to promoting the institutionalization and standardization of data security management in the CPA profession, and they respond to the development of the digital economy and further improve the basic system of the CPA profession, read the announcement.

The provisional measures regulate six main areas including standardization of data classification and grading, standardization of the management of manuscripts and enhancement of network management.

Up to now, 35 accounting firms in China have joined or created 28 international accounting networks, and the profession has become increasingly close to foreign exchanges and cooperation. The provisional measures stipulate that audit working papers from accounting firms should be deposited in China in accordance with the relevant regulations.

Accounting firms are not allowed to include in engagement letters or contracts clauses such as domestic project information. If overseas regulators need to access the domestic audit working papers due to regulatory needs, they should obtain them through the corresponding cross-border regulatory cooperation mechanism in accordance with the law, and the corresponding audit working papers should go through the relevant approval procedures before leaving the country.

Accounting firms should establish a level-by-level review mechanism for audit working papers on exit matters and implement data security control responsibilities, according to the announcement.

In addition, the interim measures require accounting firms to establish a data backup system to ensure that relevant audit working papers can still be accessed, retrieved and utilized in the event that the audit-related application system is taken out of service or restricted for external technical reasons. Encryption equipment should be set up and operated and maintained by a team in China.

China and Hungary decided Thursday to elevate bilateral relations to all-weather comprehensive strategic partnership in the new era.

Editor's Note:

Chinese President Xi Jinping left Beijing on Sunday morning for state visits to France, Serbia and Hungary at the invitation of President Emmanuel Macron of the Republic of France, President Aleksandar Vucic of the Republic of Serbia, and President Tamás Sulyok and Prime Minister Viktor Orbán of Hungary. Ahead of his visit to France, Global Times reporters Chen Qingqing and Bai Yunyi (GT) interviewed former French prime minister Jean-Pierre Raffarin (Raffarin), talking about the significance of the state visit for China-France relations, reviewing the future development of bilateral ties, and discussing the role of China-France relations in China-EU relations.
GT: This year marks the 60th anniversary of diplomatic relations between China and France. Could you share some important historical moments and achievements from these 60 years of China-France relations?

Raffarin: First of all, General de Gaulle's decision to establish diplomatic relations with China in 1964 is itself historic. France's support for the Chinese authorities in their fight against the SARS pandemic in 2003 was a major act, as were the opening of the Airbus factory in North China's Tianjin and the commissioning of the first Franco-Chinese nuclear reactor in South China's Guangdong Province. I am also very struck by the beauty of the Beijing Opera House designed by French architect Paul Andreu. There have been many joint creations across numerous fields. In 60 years, I have made more than 100 trips to China; 100 opportunities for very fruitful sharing.

GT: Over the last 60 years, what have been the changes and constants in China-France relations?

Raffarin: The constant is France's desire for independence in its policy with China. The change has been the development of the European Union, which has made diplomatic work more complex. All French presidents have followed, in relation to China, Charles de Gaulle's major orientations: Respect for civilizations, frank discussions, and co-responsibility for the future.

GT: In your opinion, what is the core element that has allowed these relations to withstand tests and continue to progress?

Raffarin: The central core is the mutual cultural appetite.

Analyzing the differences in our two civilizations is particularly fruitful as demonstrated by the philosopher François Jullien.

Culture is the heart of our relationship. The joint curiosity has been intact for centuries. This is the source of the respect that allows us to live with deep differences.

GT: How do you assess the current relations between China and France? Given the challenges of globalization and changes in the international political and economic situation, in which areas can China and France strengthen cooperation?

Raffarin: France has stable relations with China unlike many other countries, including in Europe. Chinese President Xi Jinping and French President Emmanuel Macron are two leading figures who know each other very well. They have spent hours and hours in discussion together.

The priority of our future relations, in my opinion, is building peace. In the short term, it is to act together for peace in Ukraine. In the medium term, it is to build a new multilateralism capable of allowing peace and development on our common planet.

GT: In your opinion, what role does China-France relations play within the framework of China-Europe relations? How will Europe's position in Chinese foreign policy evolve?

Raffarin: France's role in Europe is very active. We defend our ideas vigorously in all European forums. Our vision for Europe's strategic independence is gaining ground.

We are allies of the US, but do not want to be aligned with their interests. Donald Trump's place in the American debate convinced many European leaders that it is urgent to promote our sovereignty.

I think that the China-France dialogue is the best way to bring about peaceful solutions.

GT: 2024 is the year of China-France culture and tourism, as well as the Olympic year for France. Could you present the plans for cultural cooperation and exchanges between China and France for this year?

Raffarin: Many public and private initiatives will mark this year. For example, the exhibition on Versailles and the Forbidden City are particularly creative. A cultural forum bringing together Chinese and French artists will take place in November in Deauville. France will be the guest of honor at the Shanghai Expo. And more than 100 initiatives are already being programmed.

Cultural exchanges are the best medium for fostering mutual understanding and reciprocal respect.

GT: What role do cultural and human exchanges play in China-France relations?

Raffarin: We will prioritize student exchanges because they are the best vectors for promoting joint projects and creating deep and authentic ties between the two countries.

GT: In the fields of emerging technologies, sustainable development, and green energy, how can China and France seek new opportunities for cooperation?

Raffarin: I think we need to work together on the theme that is very popular among young Chinese and French people, which I call "the Planetization of politics."

Only recently has the Planet become a political object. There is a shared conviction among the world's youth: We must protect the Planet to protect Humanity.

Global governance needs consensus to progress. It is around this theme that it should be possible to invent a new multilateralism that will correct the current multilateralism's impotence.

GT: Given the current uncertainty of the international commercial environment, what are the challenges and opportunities facing China-France economic cooperation? How do you view 2023's debates in Europe on "de-risking" and this year's on "over capacity" in China?

Raffarin: We must understand our differences to avoid misunderstandings. There is a real consensus in Europe that public money should be used to help Europeans, for example, buy electric vehicles. But these subsidies are not intended to assist the production of foreign industries.

Since the WTO is currently partially blocked, trade regulation should proceed through bilateral agreements. The only real way to cooperate sustainably is to balance concessions.

GT: What are your expectations regarding the visit of the Chinese top leader to France?

Raffarin: Peace in Europe. Let's remain faithful to the spirit of General de Gaulle when, 60 years ago, he decided to establish diplomatic relations with China. The differences were probably greater than now, but the central idea was that our destinies are linked and thus the path of cooperation is more fruitful than confrontation. For this, direct and frank dialogue, understanding of each other's interests and values, and respect for sovereignty are necessary.

Chinese President Xi Jinping on Tuesday extended festive greetings and best wishes to the country's working people ahead of International Workers' Day, which falls on May 1.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, sent the greetings on behalf of the CPC Central Committee.

This year marks the 75th anniversary of the founding of the People's Republic of China and a crucial year to fulfill the goals and tasks set in the 14th Five-Year Plan, Xi said, praising the important contributions made by the working people to the cause of the Party and the country.

Xi called on working people to actively participate in advancing Chinese modernization with high-quality development, and work tirelessly to promote the building of a strong country and the rejuvenation of the Chinese nation on all fronts.

Xi asked Party committees and governments at all levels to earnestly realize, safeguard and develop the legitimate rights and interests of workers, and encourage working people to realize dreams through their work.

China's cyberspace watchdog announced on Sunday the launch of a two-month nationwide campaign targeting illegal external links for online content including among group and social network circles and live streaming and video content with the help of artificial intelligence (AI) technology. 

The campaign also targets pornographic and content displayed in commercial promotion areas of channels frequented by minors.

Illegal website links are published in user profile pictures, nicknames, bios, signatures, and covers. Methods such as posting explicit and low-quality content, frequent likes and follows, and account bio promotions are used for promotion and redirection among illegal accounts, the Cyberspace Administration of China (CAC) said in a post published on Sunday. 

Illegal website links are also posted in comments under popular topics and live streams. Tactics such as "don't search this" or "ignore the text below" are used to induce users to search for illegal sites.

Links to pornographic and scam websites are shared within chat histories, H5 pages, document notes, and mini-program sharing links will be targeted. Fake group buying and game testing activities are used alongside hyperbolic language like "not forwarding makes you unpatriotic," to induce users to click on and spread illegal links.

New AI technology or false identities are used to post pseudo-success advice, "health courses," and financial tips, leading users to add friends or join groups for scams, the authority said. 

Suggestive content is shared during live streams through placards, quick mobile screen switches, and censored photo displays, or illegal URLs are embedded in live announcements, program lists, and stickers.

Accounts on dating platforms post revealing photos to attract the opposite sex for illegal activities related to pornography and gambling will be a focus on officials. Vulgar comics and novels are pushed in browser pop-up ads, enticing users to click "read full text" or "continue listening," redirecting them to external illegal websites. 

Illegal website links are artificially placed at the top of search results or generated as associated search terms to induce clicks, the CAC said. 

Pornographic games are sold under the guise of "emotional single-player games," with customer service leading to third-party platforms for the sale of erotic novels. Services like "video live streaming promotion" or "fan base engagement" are offered to entice private inquiries, which actually provide services like inflating views, controlling reviews, or increasing followers.

The CAC said some pornographic novels and vulgar online literature are displayed in commercial promotion areas of channels frequented by minors. 

Pornographic links are posted in apps used mainly by minors under the guise of free comics and video resources, leading them to illegal websites or to obtain pornographic material through cloud storage. These efforts aim to curb the spread of illegal content and protect the digital environment.

As spring breathes warmth into the air, kite festivals are being held worldwide, attracting thousands of kite enthusiasts and tourists alike. Flying kites, an ancient custom revitalized in modern society, is more than just an outdoor sport, but also a means of cultural preservation. 

These festivals bring together top kite fliers from various nations, who showcase their unique designs and flying skills. The diversity ranges from China's traditional dragon kites to India's fighting kites, from simple paper versions to those made with modern high-tech materials.

Kites, invented by the ancient Chinese during the Spring and Autumn Period (770BC-476BC) over 2,000 years ago, has a rich heritage. 

Legend has it that the philosopher Mozi crafted the first kite out of wood, a project that took three years to perfect. The inventor Lu Ban later improved on Mozi's designs using bamboo, and during the Eastern Han Dynasty (25-220), court official Cai Lun's improvements to papermaking technology led to the widespread use of paper in kite construction. 

Right now, kite festivals not only highlight the diversity of the kites themselves, but also illustrate the cultural exchanges and integration they foster. In the context of globalization, these events serve as significant platforms for cultural dissemination. 

On April 20, the 37th Berck-sur-Mer International Kite Festival in France opened, with China honored as the guest nation. This participation is a key part of the 2024 China-France Cultural Tourism Year. 

China, the birthplace of kite flying, made its debut as the first guest country at the Berck Festival, bringing an authentic Chinese kite art and cultural experience to viewers. 

The Berck Kite Festival, founded in 1987, is one of France's largest and most influential kite-themed events. The Paris Chinese Cultural Center, this year's organizer for the guest nation's activities, collaborated with Weifang city in East China's Shandong Province, known as the kite capital of China, to provide a wealth of kite resources and organize a variety of cultural experience activities, thus presenting Chinese culture from multiple perspectives. 

The event featured dragon and lion dances, martial arts displays, tea ceremonies, calligraphy, traditional Chinese music performances, a Hanfu (traditional Han clothing) show and experience, and kite-making workshops from the Weifang team, China News Service reported.

In 1958, a Chinese-French film titled The Kite premiered, using the kite as a medium to lay a solid foundation for diplomatic relations between China and France. The film tells the story of a Paris boy who receives a kite from Beijing with a letter, leading to a dream adventure in China and cross-continental kite-fueled correspondence.

In China, when people think of kites, they think of Weifang. The 41st Weifang International Kite Festival opened there on April 20, with kite enthusiasts from across the country bringing their carefully crafted kites to participate. The skies over Weifang were filled with kites of all shapes and creative designs.

This year's kite festival included the 20th World Kite Championship, which serves as an international venue for both economic and cultural exchanges and showcases rich traditional cultural elements. The championship commenced on April 20, featuring 137 teams from 46 different countries and regions and involving 465 participants who brought a total of 509 kites.

Khalil Hashmi, Ambassador of Pakistan to China, gave a speech at the opening ceremony held on April 19 in which he called the Weifang International Kite Festival a global event celebrating friendship, innovation, and the joy of flying kites.

Ali West Hill from India told the Global Times that he has been flying kites for 15 years but this was his first time in Weifang, as well as in China. He was very excited to see the country and experience the different culture here through the festival.  

Meanwhile, traditional swallow and goldfish-shaped kites no longer suffice for many kite experts. This year, kites shaped like trains, rockets, and even the Hong Kong-Zhuhai-Macao Bridge took to the skies, with a giant cockroach kite becoming one of the most eye-catching ones. 

One visitor remarked, "After coming here, I finally understand why there is a saying in Weifang that 'anything can reach the skies.'"

In response to why the Philippines did not attend the 19th Western Pacific Naval Symposium (WPNS), Liang Wei, a senior officer with China's Naval Research Academy (NRA) told media on Monday that China, as a member of WPNS, has invited the other 29 member countries and observer states and China is not aware of the specific reasons why the Philippine Navy did not participate in this forum. 

"We believe that this annual meeting will further promote international military cooperation and deepen mutual trust and friendship between the Chinese Navy and its counterparts from various countries," said Liang.

The 19th Western Pacific Naval Symposium (WPNS) is held in Qingdao, Shandong Province from Sunday to Wednesday, with more than 180 foreign representatives from high-level delegations of 29 countries participating, including major leaders of the maritime defense departments of 20 countries. The Philippines is a member of the WPNS. 

Analysts noted that over 30 years of development, the WPNS has become the most fruitful, vibrant, and potentially largest regional multilateral cooperation mechanism among naval forces. 

In mid-January this year, the working group meeting for the WPNS 2024, hosted by the Chinese Navy, was held in East China's Nanjing. About 70 representatives from 30 countries engaged in friendly, candid, and constructive discussions over three days. They discussed the revision and renewal of relevant documents such as the WPNS Business Charter, the Code for Unplanned Encounters at Sea and the Disaster Response Guide, as well as the symposium's future activities, according to media reports. Representatives from the Philippines attended the meeting and delivered speeches.

The reason for the Philippines to choose to attend the January meeting but skip the ongoing forum is unknown. Zhang Junshe, a Chinese military expert who also attended the WPNS in Qingdao, told the Global Times on Monday that while making provocations at the South China Sea, the Philippines has consistently played as the "victim" to gain sympathy from the international community.

"Therefore, it cannot be ruled out that the Philippines deliberately abstained from attending the WPNS, hoping to continue generating flashpoints, attracting international attention, and disrupting the symposium. However, the Philippines' actions are doomed to fail," Zhang said. 

Zhang said that the WPNS is not just a regional forum for the Western Pacific, but has become an important platform for naval forces from multiple countries to enhance communication, build mutual trust, and deepen cooperation with its influence far exceeding the geographical scope of the region.

"The Philippines' absence from the forum not only reduces the opportunity for exchanges between the Philippine Navy and navies of other countries including the Chinese Navy, but also shows that the Philippines' action contradicts the international rules and maritime order it has always advocated," said Zhang.

On Monday, the Global Times reporter noticed that all member states of the WPNS expressed gratitude for China's thoughtful arrangements for this meeting at the forum venue.

Pacific Fleet Commander Admiral Stephen Koehler, who attended the WPNS on behalf of the US, also expressed his thanks to China in his speech, and mentioned that the WPNS provides an opportunity for naval leaders of various countries to communicate.

The WPNS includes almost all countries in the Western Pacific region. Countries including Canada, which are in the Eastern Pacific, also participate. Some countries with significant connections or influences in the Pacific region are also included as observer countries. "It is puzzling that the Philippines, as a member state in the Asia-Pacific region, unreasonably abstained, which is baffling," Zhang said.

Zhang noted that China has always insisted that disputes in the South China Sea should be resolved through direct consultations between China and the parties concerned, and has advocated for China and ASEAN members to jointly maintain peace and stability in the South China Sea. 

China has indisputable sovereignty over islands and reefs in the South China Sea, including Ren'ai Jiao and Huangyan Island. China has been committed to managing the situation on the ground through dialogue and consultation with the Philippines, while resolutely safeguarding its territorial sovereignty and maritime rights and interests, said Zhang. 

"One of the topics related to the WPNS is global security initiatives and maritime peace and stability, which demonstrates that the Chinese Navy is willing to work with navies of various countries through exchanges and dialogues to jointly safeguard maritime security and stability and share the opportunities brought by maritime peace," said Zhang.

US President Joe Biden is reportedly pushing for tariffs to triple on Chinese steel and aluminum, a new sign that Washington - disregarding WTO multilateral rules, domestic inflation pressure and global supply chain stability - is targeting Chinese industries under the guise of "overcapacity" fallacy.

There is a chance that the tariff hike will be imposed, observers said, as Biden is in the rush to win more support in his presidential campaign from the steel industries, which account for a large number of voters in the swing states, and as the potential tariff rise could also pave the way for more ongoing probes into relevant Chinese advantageous industries such as shipbuilding and new-energy vehicle.

Biden's tariff threat adds to an array of escalating trade tensions between China and the US, and it runs in parallel with recent phased progress across multiple military, financial and economic aspects, which has been achieved through the two countries' intensive interactions.

Observers, while playing down the risks of another looming trade war, projected that bilateral trade tensions could grow wider ahead of the US presidential election in November, casting great uncertainty on whether the bilateral ties will maintain the stabilizing discourse. They stressed that the ball is in the US court to properly manage difference between the two sides, and more tellingly, to set aside its hegemonic and confrontational mind-set that has created numerous barriers to bilateral relations.

Biden's tariff threats

In a speech at the United Steelworkers headquarters on Wednesday, Biden called on US Trade Representative Katherine Tai to "consider tripling" the existing 7.5 percent tariff rate on Chinese steel and aluminum through a review of the Section 301 tariff rate on China "cheating," according to a CNN report. The section has been under review for four years.

The speech was reportedly made as part of Biden's economic competition pitch to Pittsburgh, a city in Pennsylvania that is in the heart of the American steel industry.

One of the intentions behind the tariffs increase is that Biden is considering an intense competition with Republican candidate Donald Trump in the run-up for US president. As a result, Biden is seeking to rally more union support in the swing states such as Pennsylvania, analysts noted.

In explaining the tariff, a US official said that it aims to "protect those investments and those workers from unfair exports associated with China's industrial overcapacity…which poses a serious risk to the future of the American steel and aluminum industry," the CNN report noted.

"The so-called Section 301investigation is a familiar playbook as the clause has been abused by the former Trump administration to justify tariffs in its trade war waged against China. This time, the Biden administration resorts the same tool again while disguising it with a recently invented bizarre 'overcapacity' tag," Gao Lingyun, an expert at the Chinese Academy of Social Sciences, told the Global Times on Thursday.

"Whatever the excuse is, it cannot cover up the US' flout of WTO rules and malicious attempt to suppress China," Gao said, stressing that the overcapacity allegation equates to an inherently pseudo-concept that lays bare how hegemonic Washington is.

In response to Biden's tariff rhetoric, China's Foreign Ministry spokesperson Lin Jian on Thursday said China has been asking the US to seriously respect the principle of fair competition, observe WTO rules, and immediately lift all trade protectionist measures against China.

Biden also called China "xenophobic" and said China "got real problems" in the speech. Responding to the remarks, Lin asked, "are those words meant for China or the US itself?"

China's Ministry of Commerce (MOFCOM) also voiced strong objection to the tariffs on Thursday.

"The US ignores international economic, trade order and rules, politicizes economic and trade issues, abuses the so-called Section 301 tariff review process, publicly demands arbitrary adjustments to tariffs on Chinese products, and passes on conflicts, which is a mistake on top of a mistake. Such a move does not help solve the problems faced by US industries," a MOFCOM spokesperson said.

In 2022, the WTO ruled that tariffs on steel and aluminum imports that were imposed by the US under former President Donald Trump in 2018 violate global trade rules. China Iron and Steel Association said at that time that relevant trade is based on "industrial complementary and fair market rules," which did not harm the US and benefited downstream clients at the same time.

In a similar vein, the USTR announced on Wednesday that it was launching a new Section 301 investigation into China's trade practices in the shipbuilding, maritime and logistics sectors. The move has immediately drawn strong opposition from China, with China's Ministry of Commerce issuing a statement overnight on Wednesday, lambasting the probe as a "mistake on top of a mistake."

Gao pointed out that there's a correlation between the investigations into China's steel industries and the downstream sectors such as shipbuilding and automobile.

"Tariffs on steel, which have a chance to be levied taking account of US' bad records in weaponizing trade tools, could pave the way for subsequent crackdown on industries which China has a competitive edge, but Biden could also be weighing the follow-up move more carefully as it would further fuel domestic inflation and meanwhile, send bilateral relations to a downward spiraling mode," Gao explained.

The imports of steel from China accounted for about 0.6 percent of total US steel demand, the CNN report said, quoting a US official as saying.

Escalating trade tensions

China's Foreign Ministry confirmed on Thursday the upcoming visit of US Secretary of State Antony Blinken to China. The visit adds to a flurry of recent interactions and dialogues between the world's two largest economies that have injected stability into bilateral relations.

Chinese Defense Minister Dong Jun held a video call with US Defense Secretary Lloyd Austin on Tuesday. And at the same day, the economic and financial working groups of China and the US held their fourth meeting in Washington DC. Last week, US Treasury Secretary Janet Yellen wrapped up a high-stakes six-day visit to China.

The mixed signal underscores that the US is taking a "two-dimensional" approach to China, that is to maintain the overall dynamic stability of bilateral relations yet relentlessly ratchet up pressure on China in areas where the US deems China as competitors, analysts said, while stressing that China - on the other hand - is prepared in both ways.

Washington will continue flaring up tensions throughout the US presidential election in November, with "more aggressive and confrontational" policies as both Biden and Trump wanted to cast themselves as "tough on China" to garner support amid US' toxic political environment, Li Haidong, a professor at the China Foreign Affairs University, told the Global Times on Thursday.

The trilateral summit held among the US, Japan and the Philippines last week vowed to enhance military ties to cope with "China's threats," which analysts said is another smearing against China that ignores US' deeds that undermine regional peace and stability.

Gao said Washington will play some "small tricks" that cast uncertainties on how the bilateral relations progress, though it will do a careful trade-off as they can't afford the risk of the conflicts veering into a broadside trade war.

Analysts warned that scapegoating China won't help Biden score the political points he desires, and more importantly, the incumbent administration won't easily walk away with stepped-up crackdown on Chinese industries.

In response to the 301 investigation, China's MOFCOM and Foreign Ministry vowed that the country "will take all necessary measures to firmly safeguard its own interests."

"China adheres to the basic principle of equality and reciprocity in its discourse with the US. It is likely that China will come up with countermeasures of 'similar scale' if US dares to engage in further unfair practices against China," Li said.

A more pragmatic solution to address China-US relations, according to Gao, is to reach consensus on "smaller areas of mutual interests," such as expanding direct air flights and launching joint initiative on anti-money laundering, before moving to other "larger areas" that the two sides hold divergence.

A fair and nondiscriminatory perception of China lays the basic framework for further exchanges between the two countries, and in this regard, observers said it is particularly important for the US to approach issues from the perspective of China-US economic and trade relations themselves, putting aside any hegemonic competitive mentality and politicization of economic matters.

Zhang Yiyi also contributes to the story.