Today’s Focus: US Treasury Secretary Warns Tariff War May Lead to 10 Million Job Losses in China; France Plans to Impose Taxes on Importing Small Packages, Road to Europe for Mainland E-Commerce Stalls; From Bustling Crowds to Empty Spaces, What Happened at Chinese Airports?
On April 29, the 100th day of Trump’s return to the White House, President Trump posted on the social media platform “Truth Social,” saying, “100 very special days. Making America great again!”
To celebrate his 100 days in office, the White House held a press conference with US Treasury Secretary, Mr. Besent in attendance.
During the press conference, a reporter raised a question about US-China trade negotiations, in which China stated that they had not conducted any consultations or negotiations with the US. Could the Treasury Secretary clarify if the Trump administration had discussed tariff issues with Beijing?
Mr. Besent replied, “We will not discuss who is talking to whom.” Clarifying the confusion, he added that they, referring to the Chinese government, have different forms of governance and cater to different audiences. Therefore, he did not want to delve into the details of who is talking to whom. However, over time, it will be seen that these tariffs are unsustainable for China. In the past few days, I have seen some very large numbers, and if these numbers continue, China may lose 10 million jobs.”
Besent pointed out that such losses are irreversible, even if tariffs were reduced, they could still lose 5 million jobs.”
Besent emphasized that the US already has a trade deficit, where the goods exported from China to the US are five times the goods exported from the US to China. The current tariff policy is unsustainable for China, not the US. Therefore, the key to removing tariffs lies not with the US but with Beijing, as they bear the primary responsibility.
Besent noted that there are concerns that the US-China trade war may impact retailers. However, in reality, the US increasing tariffs on China will not affect the US supply chain. He said, “I believe retailers have prepared, managing their stocks in advance. I communicate with dozens of companies, not necessarily every day, but every week. Retailers know that President Trump is dedicated to fair trade, and they have made corresponding plans.”
As for trade negotiations between the US and other Asian countries, Besent indicated that they are currently progressing actively. He mentioned that Vice President Watts visited India recently, and both the US and India are working towards an agreement; the agreement framework with South Korea is also taking shape, and substantive negotiations have begun with Japan.
Currently, the US has increased tariffs on China to 145%, meaning Chinese goods can no longer enter the US. Additionally, the US has effectively stopped Chinese goods from “relabeling” through third countries by imposing high tariffs, forcing China to sell goods intended for the US to other economic entities.
Many countries are concerned about this, fearing an influx of cheap Chinese goods that could impact their local economies. Hence, they have strengthened control over China’s excess production capacity, especially on China’s cross-border e-commerce.
On April 29, French Budget Minister, Amelie de Montchalin, while inspecting a package sorting center near Paris Charles de Gaulle Airport, stated that France does not intend to wait for the EU’s comprehensive reform in 2028 but plans to implement fixed handling fees on these low-cost packages two years earlier.
She emphasized that these fees are not a tax on consumers but rather a requirement for e-commerce platforms to provide more resources for customs security checks.
Currently, the EU exempts import packages below 150 euros (approximately 170 US dollars) from tariffs. France is concerned that the increase in the cost of Chinese goods by the US will lead to more cheap goods flowing into France, affecting local businesses.
French Finance Minister, Eric Lombard, pointed out that many imported products pose security issues and unfair competition. He stated that in 2024 alone, France received around 800 million overseas small packages, of which 90% were from China.
The EU has proposed tariff system reforms, eliminating the tax exemption policy for small packages, but the full implementation of the plan is expected to wait until 2027 or even 2028.
However, France believes that the implementation of this plan is too late and has already negotiated with several European countries to implement early handling fees on small packages. If other large importing countries do not synchronize with France’s policy, importers in the EU single market may bypass France’s unilateral actions.
Montchalin stated that she has discussed this idea with the Dutch government and will hold consultations with the new German government in the coming weeks to implement this fee policy before 2026. She said, “Our goal is to convene all EU Customs Ministers so that measures that will not disrupt market stability can be taken in the next few weeks.”
Lombard emphasized that the proposal has no direct connection to US tariffs. They are not responding to US tariff policies but aiming to protect the French people.
Recently, many netizens have been questioning why Chinese airports have become so deserted. They pointed out the stark contrast from crowded and bustling places to now finding them empty like ghost towns. What exactly is happening here?
On April 27, a netizen captured scenes at Shanghai Hongqiao Airport, showing the vast terminal empty, which was hard to believe.
On April 26, another netizen filmed scenes at Shanghai Pudong Airport, questioning why there were so few people around 2 pm when normally it would be busy, with the departure lounge nearly empty and most duty-free shops closed.
In another video, the filmmaker lamented the eeriness, saying, “It’s terrifying, such a large airport like Shanghai Pudong, and the departure hall is so empty. The economic downturn makes it feel so scary!”
Others were perplexed, recalling how crowded Pudong airport was last month, wondering why there were no people now?
A netizen replied, noting that they were referring to the duty-free shops. This is the international departure area, so having few people is normal. “Mission accomplished,” showing understanding of the situation.
Not only in Shanghai but also at Xi’an Xianyang International Airport, Xinjiang Dihua Bao Airport, Beijing Capital International Airport, Dalian Zhou Shuizi International Airport… similar scenes were observed. Videos uploaded by netizens were extremely similar, summarized with the phrase “no people.”
From the videos shared by netizens, it can be seen that not only are they surprised by the lack of people at the airports but also express dissatisfaction with the rampant development of airports by the Chinese authorities.
The netizen filming at Dalian airport mentioned that due to the poor economy, there aren’t many people at the airport, indicating that the current airport in Dalian is sufficient. Yet, the local authorities are spending a huge amount to construct a new airport, Dalian Jinzhaowan International Airport, 18 km away from the current airport. After its construction, who will use the airport? It seems like a waste of resources.
Overseas netizens wonder, are Chinese people not traveling anymore? Why are there no people at the airport? In general, there are three reasons:
1. With the continuous decline of the Chinese economy, the downgraded national consumption has led many people to stay at home more to save money, reducing outings.
2. Real estate collapse, foreign withdrawals, a large number of businesses going bankrupt, closing, or reducing operations have significantly decreased business activities.
3. during the epidemic, China’s policies of “zero tolerance” have deterred many foreigners. Even now, the enthusiasm of foreigners for traveling to China has not returned.
Although the Chinese authorities have expanded visa-free areas, for example, last November, China announced that from November 30, 2024, to December 31, 2025, it would implement a trial visa-free policy for nationals of nine countries holding ordinary passports such as Bulgaria, Romania, and Japan, extending the stay period from 15 to 30 days for passport holders of 38 visa-free countries.
While these policies may sound sincere, foreign tourists are not convinced.
Many wonder, with China’s beautiful landscapes, delicious food, affordable prices, and excellent infrastructure, why are foreigners not willing to come?
Firstly, there is an issue with internet access. China’s internet firewall prevents foreigners from using their apps, such as Google, Facebook, Instagram, Airbnb, all of which are inaccessible in China.
Secondly, there are problems with accommodation and registration. Foreigners cannot stay casually in homestays but must stay in licensed hotels and register at the local police station. This process seems cumbersome even to Chinese, let alone foreigners who do not speak the language.
Furthermore, China’s payment systems are not foreigner-friendly. The popular payment methods in China are Alipay, WeChat Pay, etc., applications that have high verification thresholds. Even if foreigners download them, they cannot verify their identities or make payments.
Moreover, last year, China witnessed frequent attacks against foreigners, raising doubts about the safety in China for foreigners.
Finally, there are underlying reasons. Economist Huang Dawei mentioned that many western travelers are concerned about China’s human rights, information censorship, legal transparency, among other issues. To them, traveling to China is not just about visiting but also a values balancing act.
According to the latest official data from the Chinese Communist Party, in 2024, the number of foreigners entering and exiting China was 26.94 million, which is more than two-thirds less than the 97.675 million in 2019!
Not only tourists, but various airlines from other countries are opting to exit the market. After 2024, several airlines, including Virgin Atlantic from the UK, Royal Brunei Airlines, Qantas from Australia, LOT Polish Airlines, Scandinavian Airlines, among others, have temporarily suspended or canceled their routes to China.
Additionally, some airlines that suspended flights to China during the epidemic have not resumed, such as AeroMexico, and direct passenger flights between India and China.
The US, while not entirely suspending flights to China, has not fully restored them, especially amidst the intense US-China trade war. Data shows that currently, the number of flights between the US and China is less than 30% of what it was in 2019.
One might argue, if foreign airlines are not flying to China, it’s fine! As long as there are Chinese airlines, it should be enough. Without foreign flights, Chinese airlines can earn more!
Is the situation really like that? Not quite. According to financial reports released by the three major Chinese airlines: Air China, China Southern Airlines, China Eastern Airlines, their passenger revenue has been continuously decreasing and have incurred five consecutive years of losses by 2024. In other words, since the epidemic began, airlines have not made profits, but have been incurring losses.
— Production Team of “Good News Moments”