Hello everyone, welcome to “News Discussion”. I’m Jinshi, and I’m Fuyao. Today is April 9th, Wednesday.
Today’s focus: 104% tariffs cause widespread complaints! Due to China’s wrong move, the US can only escalate the trade war; 70 countries side with the US, while China is left to gamble alone; Panama pressuring Li Ka-shing to release control of the port?
Our guests for this episode are: China affairs expert and host of “Honghe Commentary”, Honghe; current affairs commentator and senior political and economic analyst, Qin Peng.
Jinshi: Today is April 9th, Wednesday. As the Chinese government failed to withdraw the retaliatory 34% tariffs to be imposed on the US by noon on the deadline of Tuesday, the US tariffs on China, according to President Trump’s order, have increased to 104% as of early this morning.
How did this 104% come about? Let’s summarize: 20% of the tariffs were imposed due to China’s failure to effectively stop fentanyl from entering the US; the 34% tariff is part of President Trump’s policy to impose reciprocal tariffs globally; and the remaining 50% tariff was imposed by Trump after China threatened retaliatory tariffs against the US.
Fuyao: In total, it is 104%. But let’s not forget, during Trump’s first term when he engaged in a trade war with China and later signed the Phase One trade agreement, some tariffs were not removed, averaging around 10% to 15%. Therefore, Chinese goods exported to the US now could face tariffs even higher than 104%.
Facing this situation, US Treasury Secretary Benson said that China’s choice to escalate the trade war is a major mistake, revealing their losing hand. However, China criticized the US for unilateralism and tariff abuse, vowing to “play till the end.”
Jinshi: Unlike the official stance of the Chinese government, the Chinese business sector is complaining.
A fashion business blogger wrote: With a swing of the US tariff stick, orders for over sixty thousand down jackets have been suspended. The orders ready for shipment are now piled in warehouses waiting for further notice. With weak consumer demand in the domestic market, the surplus from the sluggish foreign trade market will lead to more foreign trade companies rushing for domestic orders, resulting in even more overcapacity in the domestic market.
Fuyao: The owner of a clothing factory said in a video, “Now doing foreign trade feels very uncertain, with over fifty percent tariffs, it’s quite scary. Where will the orders come from? Domestic sales this year are not good either, as everyone understands, no one has money in their pockets. Do you think this market will improve?”
Qin Peng, the Chinese Ministry of Commerce said they will stick it out with the US, how do you predict China will handle this situation?
Jinshi: Both the US and China are displaying a tough stance, with Trump being very firm, not only raising tariffs by 50%, but also halting all negotiations related to tariffs with China. On the other hand, China ignored Trump’s warning to withdraw tariffs by the final deadline, appearing to be ready for a showdown.
Honghe, if this is the case, what will happen next? How will US-China relations, the relationship between Trump and Xi Jinping unfold?
Fuyao: As tensions escalate between the US and China on trade, other countries have been reaching out to the US in hopes of resolving tariff issues through negotiations. US Treasury Secretary Benson said on Tuesday that nearly 70 countries have been in contact with the US, with President Trump personally participating in negotiations to secure the best deal for the US.
Benson urged foreign officials to remain calm and not escalate the confrontation, while suggesting solutions to the US, including how to lower tariffs, eliminate non-tariff trade barriers, stop currency manipulation, and end financing subsidies.
Jinshi: Benson’s statement is likely the development direction the Trump administration hopes for, pressuring countries to lower tariffs on the US through reciprocal tariffs, remove non-tariff barriers, and ultimately establish true reciprocal free trade.
Qin Peng, it appears that other than China, most countries are showing willingness to cooperate with the US and make their own reforms. How do you see the different reactions between China and other countries in terms of attitude?
Honghe, with 70 countries siding with the US and China in a lone position, if China remains adamant, could it lead to a global invisible battle with China?
Jinshi: Let’s now turn our attention to the latest development of another topic: one of the core issues in the US-China game, the contract issue of the Panama Canal ports.
The Panama government released an audit report on Monday, revealing multiple contractual breaches by a subsidiary of Hong Kong’s Cheung Kong Holdings while operating ports at both ends of the Panama Canal, resulting in significant losses for the treasury. If the violations are confirmed, the company may lose its concession to operate the canal ports.
Fuyao: Since January 2025, the Panamanian audit department has been conducting audits on the subsidiary of Cheung Kong Holdings. Panama’s auditor general Flores stated that the tax benefits and advantages provided by the government in the contract resulted in the treasury “losing approximately $1.3 billion,” announcing legal action against relevant officials.
The final audit results will be submitted to the Panama Maritime Authority responsible for port oversight.
Jinshi: Aside from the audit controversy mentioned above, in February of this year, Panama’s Attorney General Gomez also issued a binding opinion, finding the port extension contract unconstitutional, with the case awaiting final determination by the Supreme Court.
Legal professionals and experts believe that if the audit confirms irregularities in the contract extension process, or if the Supreme Court rules the contract unconstitutional, the concession rights may be revoked.
Qin Peng, previously a consortium led by US investment company BlackRock planned to acquire the operational rights of Cheung Kong Holdings at the ports at both ends of the Panama Canal but was obstructed by China and put on hold. Now, with the audit report by Panama’s audit agency, there is a possibility of early termination of Cheung Kong’s control over the ports. How do you interpret this report and its timing?
Fuyao: While China is taking a tough stance in the tariff war with the US, Chinese soldiers have been arrested on the Russia-Ukraine battlefield, urging Ukrainian President Zelensky for an explanation.
On early Tuesday, April 8th, Zelensky posted a video on X showing that Chinese soldiers aiding the Russian army in the Donetsk region of Ukraine were arrested.
Jinshi: Zelensky stated that a total of two Chinese soldiers were arrested, with their own identification documents, bank cards, and personal information. However, according to Ukrainian military intelligence, the number of Chinese soldiers helping Russia far exceeds these two individuals. Currently, the Ukrainian military is conducting a larger scale investigation and demanding an explanation from Beijing.
Previously, the Ukrainian military arrested a large number of Korean soldiers assisting Russia on the battlefield, seen as a signal of multi-national involvement. If more Chinese military personnel are found on the front lines between Russia and Ukraine, could this lead to a re-escalation of the already-tense Russia-Ukraine conflict, an issue the world is closely monitoring.
Fuyao: Meanwhile, seeking support in Belgium, Zelensky appealed to the US. He stated that the US should pay special attention to this situation. Additionally, he urged the US to engage in dialogue with Ukrainians before negotiations with Russia.
In revealing Chinese soldiers while continuing to focus on military progress on the front lines, Zelensky confirmed that Ukrainian forces have made progress in the Berdyansk region near the Russian border. This is the first confirmation by Ukrainian officials of an area occupied in Russian territory aside from the Kursk region.
According to the military blog DeepState, Ukrainian forces have occupied a 13-square-kilometer area near the border village of Demidovka in Russian territory.
Fuyao: Since March, military conflicts between Russia and Ukraine have significantly increased. Both sides are trying to gain more land and control. However, as Russia and Ukraine have yet to reach an agreement on issues such as sovereignty, security assurance, and territorial integrity, the peace talks have made no progress.
Qin Peng, do you believe there are more Chinese military personnel involved on the Russian-Ukrainian front lines? Currently, only individual incidents have been discovered. Are they acting individually or supported by China?
Furthermore, there have been rumors among the public that China has sent mercenaries to support the war in Russia and Ukraine. Do you think Ukraine just found out about this news when discovering Chinese soldiers?
Honghe, regardless of whether the Ukrainian military discovers more Chinese military personnel later on, if China follows its past practices, they would likely deny state support for these individuals. However, how do you predict Zelensky will handle the “Chinese soldiers” situation? Will Ukraine gain more leverage in negotiations with the US because of this?
Addendum: How do you view the minor advances made by the Ukrainian military on the frontline?
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