China has responded sharply to comments made by U.S. Vice President JD Vance, who referred to the country's population as "Chinese peasants" during a recent interview on Fox News. The remarks came as Vance defended the Trump administration’s tariff policies, specifically highlighting concerns about America's borrowing practices and dependency on Chinese manufacturing.
In the interview, Vance criticised what he described as the "globalist economy," stating, "We borrow money from Chinese peasants to buy the things those Chinese peasants manufacture." This comment prompted an immediate rebuttal from Chinese authorities. Lin Jian, a spokesperson for the Chinese foreign ministry, addressed the issue at a press conference on Tuesday, calling the vice president’s remarks “surprising and sad” and characterising them as “ignorant and impolite words.” He emphasised that China’s official stance regarding Sino-U.S. economic and trade relations “has been made very clear.”
The tensions come amid an intensifying trade conflict, with the Trump administration threatening to impose an additional 50 percent tariff on Chinese goods if Beijing does not withdraw its retaliatory tariffs on American imports. Should this additional tariff be applied, the total U.S. tariff on Chinese goods would reach 104 percent. In response, the Chinese Ministry of Commerce accused the U.S. of resorting to “blackmail” and vowed to “fight to the end” over the escalating trade dispute.
This trade war has already caused significant disruptions globally, contributing to volatility in financial markets. The U.S. imported $440 billion worth of goods from China last year, making China the second-largest source of American imports after Mexico. The impending imposition of the 104 percent tariffs is expected to further affect American consumers and businesses.
On Tuesday, the White House confirmed that the new tariffs would come into effect shortly after midnight. Simultaneously, the administration announced plans to initiate negotiations with other trading partners affected by Trump's tariffs, including South Korea and Japan. Italian Prime Minister Giorgia Meloni is also scheduled to visit for talks next week. However, White House economic adviser Kevin Hassett emphasised during a Fox News appearance that negotiations with China would not be prioritised at this time. He explained, "Right now, we've received the instruction to prioritize our allies and our trading partners like Japan and Korea and others."
The announcement triggered a downturn in stock markets after several global exchanges had shown gains based on expectations of broader negotiations to ease trade barriers. The ongoing standoff between the United States and China continues to dominate international economic discussions, with both sides maintaining firm positions on their respective trade policies.
Source: Noah Wire Services