Key Points
- China has imposed new port fees on U.S. ships and launched an antitrust probe into Qualcomm. The moves are a direct retaliation for recent U.S. actions against China.
- Both countries are trying to build leverage ahead of a key meeting between President Trump and President Xi.
- China has also recently tightened its export controls on critical rare earth materials.
- The escalating tit-for-tat actions are making it harder to find a resolution to the trade dispute.
China has fired back in its escalating trade dispute with the United States, slapping new fees on U.S. ships and launching an antitrust investigation into American chip giant Qualcomm. The moves are the latest in a series of tit-for-tat actions as both countries jockey for position ahead of a crucial meeting between President Xi Jinping and President Donald Trump.
Beijing’s Transport Ministry announced on Friday it will start collecting new fees on U.S.-owned and U.S.-built ships, a direct response to a similar move by Washington. At the same time, China’s market regulator opened an anti-monopoly probe into Qualcomm’s acquisition of an Israeli firm, a move that sent the U.S. tech company’s stock tumbling.
These actions follow China’s tightening of export controls on rare earths, a group of critical materials for which it dominates the global supply. This all adds up to a clear strategy from Beijing: to create bargaining chips and put pressure on the U.S. before the two leaders meet.
The U.S., for its part, has also been ramping up the pressure. The Trump administration has recently proposed barring Chinese airlines from flying over Russia on their way to the U.S. and has expanded sanctions on Chinese tech companies like Huawei.
With a major tariff truce set to expire in November, the stakes are incredibly high. Both sides are playing a risky game of “hardball,” and the path to a deal is becoming increasingly difficult.
