HONG KONG — The fragile economic relationship between China and the United States has once again been thrust into turmoil as Beijing retaliates against Washington’s latest trade measures. In a series of decisive actions announced on Tuesday, China has implemented new tariffs, export controls, and corporate restrictions, underscoring the deepening fracture between the world’s two largest economies.
Beijing’s response follows the Trump administration’s decision to impose a sweeping 10% tariff on Chinese imports, a move that has drawn sharp criticism from Chinese officials. In direct retaliation, the Ministry of Finance has introduced a new set of tariffs on U.S. goods, including a 15% duty on select energy products such as coal and liquefied natural gas. The measures also include a 10% tariff on crude oil, agricultural machinery, and high-powered American automobiles, signaling China’s intent to apply pressure on key sectors of the U.S. economy. These tariffs are scheduled to take effect on February 10, further escalating trade tensions.
Simultaneously, China has taken steps to curb the export of crucial industrial and technological materials. The Ministry of Commerce and customs authorities have placed immediate restrictions on over two dozen key materials, including tungsten and tellurium. Given China’s dominant position in the global supply of tungsten—accounting for more than 80% of the world’s production—the new controls could disrupt manufacturing and defense industries in the United States.
The list of countermeasures extends beyond tariffs and export controls. In a move that could impact the corporate landscape, Beijing has placed American biotech giant Illumina and fashion powerhouse PVH Group on its “unreliable entities list.” Chinese officials claim that both companies engaged in practices that undermined market principles, though no specific infractions were detailed. This designation signals China’s increasing willingness to use regulatory tools as leverage in its ongoing trade battle with Washington.
China’s regulatory authorities have also launched an antitrust investigation into Google, accusing the company of engaging in monopolistic behavior. While Google’s business footprint in China is limited due to longstanding restrictions on its search engine and digital services, the investigation serves as a symbolic warning to American technology firms operating in the region.
Despite the flurry of countermeasures, analysts suggest that China’s response is designed to demonstrate strength without inflicting severe economic damage. Compared to the expansive scope of U.S. tariffs—targeting over $450 billion in Chinese goods—Beijing’s new duties affect a much smaller share of U.S. exports, estimated at $20 billion annually. Nevertheless, the strategic nature of China’s measures indicates a clear intent to exert pressure in sectors that matter most to American businesses and policymakers.
The timing of these actions coincides with broader geopolitical shifts. The Trump administration’s tariffs are not solely aimed at China but also at Mexico and Canada, as part of an aggressive strategy to curb illegal immigration and combat the fentanyl crisis. The U.S. has accused Chinese firms of supplying chemicals used in the production of fentanyl, an allegation that Beijing has strongly denied. The latest tariffs have further strained U.S.-China cooperation on drug enforcement, with Beijing warning that such economic actions could undermine mutual trust on security issues.
Amid rising tensions, the prospect of renewed negotiations remains uncertain. Trump has expressed openness to discussions with Chinese President Xi Jinping, but Beijing has not confirmed any plans for dialogue. The coming weeks will be crucial in determining whether this dispute escalates into an all-out economic war or whether both sides can navigate a path toward resolution in an increasingly volatile global landscape.
