Asia
China releases white paper on US trade relations
The State Council Information Office of China yesterday released a comprehensive white paper titled “China’s Position on Certain Issues in China-US Economic and Trade Relations,” outlining its official position on ongoing trade disputes with Washington.
The white paper addresses the nature of economic relations between the two countries, the implementation of the Phase One Trade Agreement, compliance with World Trade Organization (WTO) rules, and unilateral policies of the US.
In the introduction, Beijing stated that China and the US are the world’s largest developing and developed countries, respectively, emphasizing that economic and trade relations between the two are of great importance for both bilateral and global stability and development.
It noted that since the establishment of diplomatic relations in 1979, bilateral trade volume has increased from $2.5 billion to approximately $688.3 billion in 2024.
The white paper stated that the foundation of China-US economic and trade relations lies in the understanding of “mutual benefit and win-win.”
It was noted that the two countries are important trading partners for each other, with rapidly increasing trade in goods and services.
China is the US’s largest goods export market and second-largest source of imports; the US is China’s third-largest export market and second-largest source of imports.
Beijing argued that it does not pursue a trade surplus, and that the trade balance is a result of structural problems in the US economy, the comparative advantages of the two countries, and the international division of labor.
It was reported that when local sales through trade in goods, trade in services, and investments are considered together, the economic benefits obtained by the two countries are roughly balanced.
Additionally, it was stated that China is taking active steps to increase imports through platforms such as the China International Import Expo (CIIE).
The white paper gave extensive coverage to the Phase One Trade Agreement signed on January 15, 2020.
It was argued that the Chinese side has meticulously fulfilled its obligations under the agreement, despite challenges such as the COVID-19 pandemic, supply chain disruptions, and global economic recession.
In this context, it was stated that intellectual property protection has been strengthened, market access has been increased in the agricultural and food products and financial services sectors, and forced technology transfer has been prohibited.
In contrast, it was pointed out that the US side has not fulfilled its obligations under the agreement.
According to the white paper, Washington, contrary to the spirit of the agreement, tightened export controls, increased sanctions against Chinese companies, and imposed investment restrictions.
In particular, regarding technology transfer, it was argued that the US, as in the case of TikTok, is forcing companies to sell and preventing investment cooperation under the pretext of “national security.”
In the field of agriculture, it was stated that the US has not recognized China’s avian influenza-free zone status and has not responded to requests for cooperation on pesticides.
It was also claimed that the US has engaged in restrictive and discriminatory practices in financial services and exchange rate issues.
In addition, Beijing emphasized that since joining the WTO in 2001, it has adhered to the principle of free trade and has strictly complied with WTO rules.
It was stated that in this process, more than 2,300 central laws, regulations, and rules, and more than 190,000 local regulations have been reviewed and revised.
It was stated that customs duty rates have been reduced in line with WTO commitments and have even been further reduced unilaterally in recent years.
It was argued that subsidies are provided within the framework of WTO rules and within reasonable limits, and that relevant notifications are made in a timely manner.
The white paper stated that accusations that China creates “overcapacity” and disrupts international markets with “non-market economic behaviors” such as subsidies are “irrational and untrue.”
It was emphasized that such claims are trade protectionism and will harm global supply chains.
On the other hand, it was noted that China is constantly improving its business environment, expanding market access for foreign investments, and treating all domestic and foreign businesses equally.
A significant part of the white paper was devoted to criticizing the US’s unilateral and protectionist policies. It was stated that Washington arbitrarily expanded the concept of “national security,” used export controls as a political weapon (especially in the fields of semiconductors and artificial intelligence), and applied Section 301 and Section 232 customs duties that clearly violate WTO rules.
It was pointed out that the WTO panel found Section 301 tariffs to be against the rules. It was noted that these tariffs did not solve the US trade deficit, but rather increased costs for US importers and consumers.
Similarly, it was stated that Section 232 tariffs applied to steel and aluminum products were used not for “national security” reasons, but to put pressure on other countries in negotiations.
It was warned that US attempts to remove China’s Permanent Normal Trade Relations (PNTR) status violate WTO rules and would seriously damage bilateral relations.
It was stated that using the fentanyl issue as an excuse to increase customs duties is baseless and will not solve the problem.
Finally, it was pointed out that the “reciprocal customs duties” implemented by the US will harm both the US economy and global trade.
In the conclusion of the white paper, it was reiterated that China and the US are the world’s two largest economies and that cooperation between them is critical for global peace and development.
It was emphasized that it is natural for the two countries to have differences, but these should be resolved through equal dialogue and mutually beneficial cooperation rather than conflict.
Beijing, using the expressions “There are no winners in trade wars, and protectionism is a dead end,” called on the US side to move in the same direction as China, and to act in accordance with the principles of mutual respect, peaceful coexistence, and win-win cooperation.
It was stated that the two countries can address their concerns through dialogue and jointly promote the healthy, stable, and sustainable development of bilateral economic and trade relations.
Beijing said it had conducted law enforcement patrols in waters east of Taiwan in response to a decision by Japan and the Philippines to launch talks on maritime boundary delimitation.
According to a statement from the China Coast Guard, a flotilla led by the vessel Daishan carried out law enforcement patrols “in accordance with the law” on Monday.
China Coast Guard spokesperson Jiang Lue said the operation was “a necessary action” in response to Japan and the Philippines “unilaterally announcing the start of negotiations on maritime delimitation in waters east of China’s Taiwan Island.”
“Such an announcement seriously infringes upon China’s territorial sovereignty and its maritime rights and interests,” Jiang said.
“We urge Japan and the Philippines to immediately cease all illegal actions that violate China’s sovereignty and rights,” he added.
Jiang also said the coast guard would continue strengthening its control and management of the relevant waters and that China would take concrete measures to “resolutely safeguard territorial sovereignty and maritime rights and interests.”
The United States and most of its allies, including Japan and the Philippines, do not recognize Taiwan as an independent state and acknowledge it as part of China. The United Nations has also adopted resolutions reflecting this position. However, Washington continues to provide arms to Taiwan as part of its broader efforts to counter China and encourages its allies to do the same.
Following a summit in Tokyo between Japanese Prime Minister Sanae Takaichi and Philippine President Ferdinand Marcos Jr., the two countries said in a joint statement issued on Thursday that they had agreed to begin “formal negotiations” to delimit their exclusive economic zones (EEZs) and continental shelves.
Beijing condemned the planned talks as “completely illegal and invalid” and swiftly lodged formal diplomatic protests with both Tokyo and Manila.
Chinese Foreign Ministry spokesperson Mao Ning said on Friday: “The so-called delimitation negotiations are entirely illegal, invalid and void. They will have no impact whatsoever on China’s claims or on China’s exercise of its legitimate rights in the area east of Taiwan Island.”
The latest escalation comes at a time when relations between Beijing and both Tokyo and Manila are already strained. Japan and the Philippines are treaty allies of the United States, while China remains engaged in separate territorial disputes with Japan in the East China Sea and with the Philippines in the South China Sea.
As US attention and resources have increasingly shifted toward the war involving Iran, and as the White House has made the Western Hemisphere a strategic priority, Japan and the Philippines have stepped up diplomatic engagement in the region commonly referred to as the Indo-Pacific.
That effort has included building closer security and defence ties with other countries, prompting Beijing to accuse them of encouraging bloc confrontation in the region.
Japan and the Philippines do not share a maritime boundary. However, their seabed claims could overlap because both countries seek to extend their legal continental shelves beyond 200 nautical miles, equivalent to 370 kilometres or 230 miles.
The overlapping area lies east of Taiwan, southwest of Japan’s Ryukyu Islands and north of the Philippines’ Batanes Islands.
Yang Xiao, a researcher at the Chinese Academy of Social Sciences, China’s highest-ranking state-affiliated think tank, said Taiwan’s EEZ and continental shelf are part of the area under discussion.
“These are China’s rights and are not something that the two sides can negotiate among themselves,” Yang said.
In an interview published on Sunday by Yuyuan Tantian, a social media account affiliated with state broadcaster CCTV, before the China Coast Guard announced the patrols, Yang said Beijing would take “historic and unprecedented” countermeasures against Tokyo and Manila.
“Since they are negotiating in a three-party overlapping zone, we can also take further steps to advance our jurisdiction in the waters east of Taiwan,” Yang said.
“If the other side insists on reckless and destructive actions, we will inevitably introduce new countermeasures.”
Yang described the waters east of Taiwan as a vital maritime area for the island’s economic activities.
“If these waters are divided between Japan and the Philippines, that would clearly harm the interests of the people living on Taiwan Island,” he added.
As artificial intelligence reshapes industrial structures in Japan and South Korea, stock market rankings are being redrawn. SoftBank Group has overtaken Toyota Motor to become Japan’s most valuable listed company.
SoftBank shares have surged as the global artificial intelligence rally gathers momentum, lifting the technology conglomerate’s market capitalisation above that of Toyota for the first time in more than two decades.
The shift reflects a broader reordering of Japan’s equity market. Automakers, alongside banks, steelmakers, energy companies and other traditional heavy industries, are losing ground to chipmakers and companies linked to artificial intelligence.
SoftBank shares jumped 14% on Monday, reaching a new record high. The company’s market value climbed to 48 trillion yen, or $301 billion, making it the most valuable company listed on the Tokyo Stock Exchange.
Toyota had long held the top position, with a market capitalisation of approximately 45 trillion yen. The last time SoftBank surpassed Toyota was in March 2000, at the peak of the dot-com bubble.
SoftBank’s rapid rise has been driven by strong earnings performance and its substantial investment in ChatGPT developer OpenAI.
The Japanese company reported net profit of 1.82 trillion yen, or $11.4 billion, for the first three months of 2026, 3.5 times higher than in the same period a year earlier. The group is also increasing its investment in OpenAI, completing a $10 billion investment in April and committing to invest an additional $20 billion later this year. Total investment is expected to reach roughly $65 billion.
According to The Wall Street Journal, OpenAI plans to file for an initial public offering and aims to list in the United States as early as September. Some media reports suggest the company could seek to raise $60 billion through the offering, potentially valuing it at more than $1 trillion. Such a transaction could become the largest initial public offering in history.
Investors expect the IPO to significantly boost SoftBank’s investment gains. Those expectations have helped drive the technology group’s share price higher. SoftBank shares have risen about 127% since early April.
The company is also planning to invest up to 14 trillion yen in the construction of data centres in France.
Chinese President Xi Jinping met Serbian President Aleksandar Vucic in Beijing, where the two leaders discussed bilateral ties and oversaw the signing of multiple cooperation agreements. Xi also awarded Vucic the Friendship Medal of the People’s Republic of China.
The meeting between Xi Jinping and Aleksandar Vucic began with an official welcoming ceremony at the Great Hall of the People in Beijing.
The two leaders then proceeded to formal talks. Xi said China and Serbia had achieved “positive results” since jointly launching the construction of a “China-Serbia community with a shared future in the new era” in 2024.
Xi said the partnership had not only benefited the two peoples but had also set an example for international relations.
The Chinese president described relations between China and Serbia as an “iron friendship” based on deep historical ties and mutual trust.
Calling on both sides to strengthen exchanges, deepen practical cooperation and continue supporting each other on issues concerning their core interests, Xi also said the two countries should align their development strategies and advance cooperation under the Belt and Road Initiative. In this context, he pointed to transport, energy and infrastructure projects.
Xi also called for expanding cooperation in emerging sectors such as artificial intelligence, the digital economy, green energy and advanced manufacturing.
Aleksandar Vucic congratulated China on the start of implementation of its 15th Five-Year Plan. Vucic also expressed confidence in China’s future development under Xi Jinping’s leadership.
The Serbian president said Belgrade attached great importance to relations with China and firmly supported Beijing on issues concerning China’s core interests.
Vucic thanked Chinese companies for their contributions to Serbia’s economic development and infrastructure construction.
Saying the two countries had made notable progress since establishing their comprehensive strategic partnership, Vucic added that cooperation had expanded across numerous sectors.
The Serbian president also praised China’s role in international affairs, saying Beijing approached smaller countries on the basis of equality and respect and defended international law.
Following the talks, the two leaders witnessed the signing of more than 20 cooperation agreements covering politics, trade, science and technology, education, legal affairs and culture.
The two sides also issued joint statements on steadily advancing the construction of a China-Serbia community with a shared future in the new era and jointly supporting the implementation of four global initiatives.
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