China Urges US to Halt Trade Weaponization: Will Tensions Ease?

China demands US stop weaponizing trade, accuses Washington of using trade to serve national security agenda. Liu Pengyu, spokesperson for Chinese Embassy in the US, says this goes against the principles of fair competition and free trade that the US claims to uphold.

In an interview with TASS, Liu called on the US to “stop politicizing and weaponizing economic and trade issues” and create “necessary conditions for economic and trade cooperation” between the two countries. This comes after the Trump administration recently restricted Chinese investments in the US to protect American intellectual property and technology from perceived foreign threats.

Last week, President Trump issued a memo to limit Chinese investment in key sectors citing national security concerns. This is part of the administration’s broader effort to curb foreign influence and protect domestic industries. But China says this violates international trade norms and undermines the free market principles that the US has always touted.

Impact of US Trade Barriers on China-US Relations

Tensions between the US and China have been escalating since the Trump administration imposed 10% tariffs on Chinese imports. China hit back with 10% tariffs on American coal, gas and other goods. The tit-for-tat approach is straining economic ties between the two largest economies in the world.

China has also filed a complaint with the World Trade Organization (WTO) calling the US tariffs “discriminatory and protectionist”. Beijing says the tariffs violate global trade rules and are based on “ untenable and false” allegations that China is behind the fentanyl flow to the US. This has further complicated diplomatic relations with both sides accusing each other of undermining global trade stability.

Liu said the US is “overstretching the concept of national security” to justify its trade restrictions. He said such actions hinder normal economic exchanges and go against the spirit of free market policies. “To deliberately block normal economic and trade exchange for political agendas goes against the principles of market economy and fair competition,” Liu said.

Outlook: Will Trade Tensions Ease?

The trade tensions between the US and China show no signs of resolving. Unless both sides talk, the situation could escalate further and impact global supply chains and growth.China is looking for normalization of trade but not willing to surrender to unfair practices. The US is sticking to its national interest especially on technology and intellectual property. Investors and markets are watching.