On the 9th, Chinese President Xi Jinping said that he would strengthen strategic mutual trust and industrial and supply chain cooperation with neighboring countries. This is interpreted as Xi's first message since the trade war with the United States intensified, indicating a desire to foster friendly relations with neighboring countries to navigate U.S. pressure. The government also separately stated that the U.S. tariff threats are "adding mistake to mistake" and insisted that trade between China and the U.S. is not in an 'unbalanced' state.
According to state-owned China Central Television (CCTV) on the 9th, Xi Jinping presided over the 'Central Neighboring Work Conference' from the previous day. This meeting was held for the first time in 12 years since Xi began his first term in 2013. Key national leaders, including Xi, Premier Li Qiang, Chairman Zhao Leji of the Standing Committee of the National People's Congress, and Chairman Wang Huning of the National Committee of the Chinese People's Political Consultative Conference attended in large numbers.
In his speech that day, Xi noted that "the relationship between our country and neighboring countries is in the best state since modern times" and stated that "we have entered an important stage for the deep connection between the neighboring landscape and global changes." He emphasized that to build a community of shared destiny with neighboring countries, it is necessary to strengthen strategic mutual trust with neighboring countries, support regional countries in maintaining their own development paths, and manage conflicts and differences appropriately.
He also demanded, "We must deepen development and consolidation, build a high-level interconnected network, and strengthen industrial and supply chain cooperation," adding that "we should jointly maintain regional stability and respond to various risks and challenges through security and law enforcement cooperation."
Xi's remarks that day attracted global attention as they were announced amid an escalating trade war with the U.S. Since February, President Donald Trump has imposed a total tariff of 104% on China. In response to the U.S. ‘reciprocal tariff’ on U.S. imports, China imposed a 34% tariff on American goods, leading Trump to raise tariffs on Chinese imports by 50 percentage points, causing the tariff battle to heat up uncontrollably.
Xi's policy of strengthening relations with neighboring countries is seen as one of the means to break through U.S. pressure on China. China has the most neighboring countries in the world, sharing borders with 14 countries, including Russia, some of which are U.S. allies such as South Korea, Japan, and the Philippines. It seems aimed at offsetting U.S. pressure through political and economic cooperation by fostering friendly relations with these neighboring countries. Additionally, the recent imposition of reciprocal tariffs by the U.S. on its allies heightens global discontent, which is also a favorable situation for China, positioned in opposition to the U.S.
According to the Hong Kong South China Morning Post (SCMP), Xi is scheduled to visit three Southeast Asian countries—Vietnam, Malaysia, and Cambodia—in mid-July, which is also analyzed as a move mindful of diplomatic relations with neighboring countries.
In addition to Xi's message that day, China made it clear that it has no intention of negotiating complacently with the U.S. This was conveyed through a white paper titled 'China’s Position on Several Issues Regarding Sino-U.S. Economic and Trade Relations' issued by the China State Council. The white paper, which consists of a total of 28,000 characters, is made up of six chapters, which include: ▲ Sino-U.S. economic and trade relations are fundamentally reciprocal ▲ China is seriously implementing the Phase 1 trade agreement with the U.S. ▲ The U.S. has violated its obligations under the Sino-U.S. Phase 1 trade agreement ▲ China practices the concept of free trade and complies with World Trade Organization (WTO) rules ▲ Unilateralism and protectionism hinder the development of bilateral trade relations ▲ Sino-U.S. trade differences can be resolved through equal dialogue and mutually beneficial cooperation.
China’s Ministry of Commerce responded to the U.S. claim that trade deficits between the two countries should be corrected regarding this white paper, stating that "the Sino-U.S. goods trade gap is an inevitable result of structural problems in the U.S. economy and is determined by the comparative advantages of both countries and the international division of labor," adding that "China does not intentionally pursue (goods trade) surpluses." It also emphasized that "the ratio of China's current account surplus to gross domestic product (GDP) has fallen from 9.9% in 2007 to 2.2% in 2024."
The white paper stated, "Tariff threats are adding mistake to mistake, which reveals the essence of typical unilateralism and hegemony on the part of the U.S." It added, "There are no winners in a trade war, and there is no exit in protectionism," and noted that "China does not seek a trade war but will not tolerate any infringement or deprivation of the legitimate rights and interests of the Chinese people."
It also added, "If the U.S. insists on strengthening relevant restrictive measures, China has firm will and abundant means, and will respond resolutely and confront the situation to the end."