China News Live: Partial pause in tariffs on chinese goods may be brief

Despite a pause in some tariffs, a 10% levy on all Chinese goods, plus an additional 20% tax related to fentanyl, remains in effect, as per a report in The Guardian. Factoring in existing tariffs on steel implemented by past administrations, the effective tariff rate on Chinese goods is closer to 40%.

The pause has been met with varied reactions, including relief from some clients and celebration from big retailers, but the article suggests that Donald Trump's stance towards China indicates that this trade war respite may be temporary.

China is set to launch its near-Earth asteroid probe, Tianwen-2, in late May, marking the country's first mission to gather samples from interplanetary space, according to a report in Reuters. The probe was transported to the Xichang Satellite Launch Centre on May 14 and will launch after inspections, the report said.

This mission is occurring amidst an intensifying space race between the U.S. and China, which includes lunar and Mars missions, and asteroid studies. China's advancements in space are viewed as a sign of its growing technological capabilities and ambition to become a global leader in science and technology, potentially challenging the U.S. and Europe.

According to a report in The Hill, China strategically outmaneuvered the Donald Trump administration's tariff war, leading to a provisional halt in the escalating trade conflict through diplomatic efforts, which fostered a more predictable and rules-based global trade landscape. This halt followed Donald Trump's initial imposition of tariffs on Chinese goods, the Phase One trade deal, and the strain on relations caused by the COVID-19 pandemic, all of which are past events.

The perceived 'blink' by the Donald Trump administration could weaken his image and potentially damage support, while the halt creates a foundation for future administrations to build upon. The halt also provides relief to US manufacturers and farmers, strengthens China's position, and implicitly acknowledges the role of international organizations like the WTO.

President Donald Trump's administration initiated a tariff plan on April 2, which Trump hailed as “liberation day,” but the policy was short-lived, lasting only 40 days, according to a report in The Guardian. The repercussions of these six weeks, including increased prices and slower economic growth, are still unfolding, and further adjustments are being considered.

The report in The Guardian notes that despite the policy's brief duration, its effects continue to be observed, and the situation remains subject to change.

China's commerce ministry conducted its weekly press conference on May 15, 2025, following an agreement between China and the U.S. to reduce import tariffs for a minimum of 90 days, as per a report in Reuters. The tariff reductions involve a decrease from 125% to 10% and from 145% to 30%.

The agreement between China and the U.S. to cut import tariffs suggests a potential improvement in trade relations after previous trade disputes and tariff impositions by both countries. This agreement could be seen as a political win for the Chinese government, demonstrating a willingness to negotiate and potentially stabilizing its economy, while the U.S. government could present the agreement as a success in trade negotiations.

China's heavy truck market is projected to shift significantly towards electric vehicles, with CATL chairman Zeng Yuqun predicting that half of all heavy truck sales in China will be EVs by 2028, a substantial rise from the 10% figure in 2024, according to a report in Reuters. Zeng Yuqun's statement was made at a battery-swapping launch for heavy trucks and reported by Jiemian, a Shanghai government-affiliated news site.

This projection from CATL, the world's largest battery manufacturer, suggests a potential decrease in fuel demand and aligns with China's Five-Year Plans that include ambitious targets for renewable energy and emissions reduction. The shift could also impact state-owned oil and gas companies, foreign automakers operating in China, and global climate change efforts.

The United Arab Emirates and the United States have signed an agreement for the UAE to build the largest artificial intelligence campus outside the United States, a deal that previously faced restrictions due to concerns that China could access the technology, according to a report in Reuters. This agreement signifies a shift in U.S. strategy, potentially prioritizing geopolitical alliances over preventing China's access to advanced technologies, specifically AI chips.

The deal builds upon the foundation of the Abraham Accords, brokered during President Donald Trump's administration, which normalized relations between the UAE and Israel, and it is expected to strengthen the strategic partnership between the U.S. and the UAE, fostering cooperation in technology, security, and economic sectors. This move is also seen as part of broader U.S. efforts to counter China's growing influence in the Middle East and promote U.S. technological dominance in the region.

Matthew Radalj has shared his experiences of spending five years in a Chinese prison, offering a rare glimpse into the conditions and daily life behind bars, according to a report in BBC. Radalj's account highlights the challenges faced by foreign nationals detained in China, amid increasing international scrutiny of China's detention practices and concerns about due process. This case adds complexity to the already strained Australia-China relations, which have deteriorated due to disputes over trade, human rights, and security.

Several tariffs introduced by Donald Trump against specific countries and industries remain in place, although many have been paused or exempted, according to a report in The Guardian. A 30% tariff on Chinese imports, with some exceptions, went into effect on May 13. Other tariffs that went into effect include a 10% universal tariff (April 5) and a 25% tariff on cars and auto parts, with some exceptions (May 3). Tariffs on goods from Canada and Mexico not covered in the USMCA went into effect March 4.

“Reciprocal” tariffs, until July 8, were paused on April 9, and higher tariffs on Chinese goods, until August 12, were paused on May 13. Goods from Canada and Mexico covered in the USMCA, including auto parts, were exempted on April 2, as were tariffs on smartphones, computers, and other electronics imported from China (April 12). Tariffs remain on pharmaceuticals, semiconductors, lumber, copper, and movies produced outside the US.

LandSpace, identified as a top rocket firm in China, launched its Zhuque-2 rocket from Jiuquan, China between 03:30 GMT and 04:58 GMT on May 17, 2025, as per a report in Reuters. The Zhuque-2 utilizes liquid oxygen and liquid methane as fuel, representing a move towards more sustainable and advanced rocket technology. While LandSpace is a prominent private rocket company, the state-owned China Aerospace Science and Technology Corporation (CASC) remains the dominant player in China's space program.

The launch is viewed within the context of the US-China technological competition, China's space program ambitions, and the global space race. Success in this area could strengthen the Chinese government's legitimacy and boost its domestic aerospace industry, while also potentially spurring increased investment in US space programs. The launch has potential political implications for the international space community and Taiwan.

According to a report in The Guardian, the U.S. has declared a temporary tariff reduction on Chinese imports, decreasing rates from 145% to 30% for a 90-day period, and China is set to reciprocate by lowering tariffs on U.S. goods from 125% to 10% for the same duration. Robert Reich, who previously served as secretary of labor, argues that President Donald Trump's tariff policies will not effectively revive American jobs.

The tariff reductions are a result of ongoing negotiations between the U.S. and China aimed at de-escalating trade tensions, and the Biden administration is under pressure to address rising inflation, with some viewing tariff reductions as a tool to lower import costs. The political implications are significant for the Biden administration, potentially portraying a diplomatic victory but also opening the door to criticism for being too lenient on China, while the Republican Party is likely to criticize the agreement as being too weak and not addressing China's unfair trade practices.

Invest Hong Kong (InvestHK), the Hong Kong government's investment promotion arm, announced a visit by Ms. Alpha Lau, the Director-General of Investment Promotion at InvestHK, to Cairo, Egypt, to attract Egyptian businesses to establish operations in Hong Kong and leverage opportunities in the Asia-Pacific region, as per a report in AP. Ms. Lau will participate in the Guangdong–Hong Kong–Macao Greater Bay Area Economic and Trade Cooperation Conference (Cairo).

The visit aligns with China's Belt and Road Initiative (BRI) and reinforces Hong Kong's role as a 'super-connector' between mainland China and the rest of the world, particularly in light of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) initiative. This initiative seeks to integrate Hong Kong, Macau, and Guangdong province into a cohesive economic powerhouse.

Mexico, Chile, and Uruguay have suspended poultry imports from Brazil after the country reported confirmed cases of bird flu, according to a report by the Associated Press. Brazil's Agriculture and Livestock Ministry announced on Friday that China and the European Union had also halted poultry imports from Brazil. Mexico's National Service for Agro-Alimentary Health, Safety and Quality stated it was temporarily suspending imports of chicken meat, fertile eggs, live birds, and other poultry products from Brazil.

The pause on tariffs initiated by Donald Trump offers a respite, though existing tariffs, including a 10% levy on all Chinese goods and an additional 20% tax related to fentanyl, remain in effect, as per a report in the Guardian. Factoring in tariffs from previous administrations, the effective tariff rate on Chinese goods is around 40%. This pause is likely a result of recent diplomatic engagements, notably the meeting between President Joe Biden and President Xi Jinping at the APEC summit in November 2023, where both leaders aimed to stabilize relations.

Despite this pause, the fundamental economic rivalry between the U.S. and China continues, encompassing technology, intellectual property, and global influence; furthermore, the upcoming 2024 U.S. presidential election introduces uncertainty, as a change in administration could reverse the tariff pause or escalate trade tensions. The pause offers the Biden administration an opportunity to demonstrate diplomatic engagement and potentially alleviate inflation, while Republicans may criticize it as a sign of weakness.

China's near-Earth asteroid probe, Tianwen-2, is scheduled to launch at the end of May, marking the country's first mission to gather samples from interplanetary space, according to a report in Reuters. The probe was transported to the Xichang Satellite Launch Centre's launch area on May 14 and is set for takeoff following inspections, the report said.

The Tianwen-2 mission is part of an increasingly competitive space race between the U.S. and China, which includes lunar and Mars exploration, and aligns with China's goal of technological self-reliance. Success of the mission would bolster the Chinese Communist Party's image, while also intensifying pressure on the U.S. to maintain its lead in space exploration.

Colombia's government has applied to join a China-based development bank, another sign of Latin America's drift away from the US as the Trump administration's foreign aid cuts, trade barriers and crackdown on immigration spurs many leaders in the region to seek closer ties with Washington's geopolitical rival.

Colombian President Gustavo Petro wrapped up a visit to China this week with a stop in Shanghai, where he met with former Brazilian President Dilma Rousseff, the head of the New Development Bank.

The multilateral lender was set up a decade ago as a project of Brazil, Russia, India, China and South Africa — the so-called BRICS nations of major developing markets — as a counter to US-dominated institutions like the World Bank and Inter-American Development Bank.

Idaho State Police have identified the six victims of a fatal tour van accident that occurred near Yellowstone National Park in early May, according to a report by the Associated Press (AP). The victims include Jianping Li, Xiaoming Jiang, Ivana Wen, Li Nie, Aifeng Wan, and the van's 30-year-old driver. Jianping Li was from Guangxi, China, and Xiaoming Jiang was from Guilin, China; Ivana Wen was from Milan, while Li Nie and Aifeng Wan were residents of Arcadia, California.

The accident, which occurred earlier in May, is prompting discussions about infrastructure spending and road safety in tourist areas, and could also have implications for US-China tourism relations. The US State Department may provide consular assistance to the families of the Chinese nationals, potentially requiring diplomatic engagement with the Chinese government, and the Idaho state government may face scrutiny regarding road safety and emergency response protocols.

Chairman of CATL, Zeng Yuqun, stated that electric vehicles could account for half of China's heavy truck sales by 2028, a jump from 10% in 2024, as per a report in Jiemian. Zeng's remarks, made at a heavy-truck battery-swapping launch, suggest a potential decline in fuel demand within the country.

The projection aligns with China's Five-Year Plans, which consistently emphasize green energy transition, and is likely supported by government initiatives such as subsidies, regulations, and infrastructure investments. This shift also reflects China's ongoing efforts to combat air pollution by promoting electric vehicles.

Idaho State Police identified the six tourists killed in a van crash near Yellowstone National Park as Jian Shi, Xiaoming Jiang, Ivana Wen, Li Nie, Aifeng Wan, and Yu Zhang, according to a report by the Associated Press. Jian Shi and Xiaoming Jiang were from China, Ivana Wen was from Milan, and Li Nie and Aifeng Wan were California residents. Yu Zhang, the driver, was also a California resident.

The crash, which occurred earlier in May, is prompting discussions about travel advisories for Chinese citizens visiting the U.S., particularly regarding road safety, and may lead to increased scrutiny of tour operators catering to Chinese tourists.

China's commerce ministry conducted its weekly press conference on May 15, 2025, following an agreement between China and the U.S. to reduce import tariffs from 125% to 10% and from 145% to 30% for a minimum of 90 days, as per a report in Reuters. This agreement is a result of recent trade negotiations between the two countries and may be driven by domestic economic pressures in both China and the U.S. that necessitate a reduction in trade barriers.

The tariff reduction could be seen as a diplomatic achievement for the Chinese government and may ease pressure on Chinese exporters and consumers, while the U.S. government could portray it as a victory in lowering costs for American consumers and businesses. However, some domestic industries in both countries may face increased competition, and the 90-day timeframe introduces uncertainty about the long-term impact.

Donald Trump has implemented a series of tariffs targeting nations and sectors deemed threats to U.S. industry, as per a report in the Guardian. While some of the harshest tariffs have been paused and certain exemptions granted, a number of tariffs are still active.

Specifically, as of May 13, a 30% tariff on Chinese imports (with some exceptions) is in effect. Other tariffs currently in place include a 10% universal tariff (effective April 5) and a 25% tariff on cars and auto parts (with some exceptions) that went into effect on May 3. Tariffs on goods from Canada and Mexico not covered in the USMCA, set at 25%, went into effect on March 4. Tariffs that were previously paused include “reciprocal” tariffs (paused April 9) and higher tariffs on Chinese goods (paused May 13), while goods from Canada and Mexico covered by the USMCA, smartphones, computers, and other electronics imported from China have been exempted.

Matthew Radalj has shared his experiences of spending five years in a Chinese prison, describing the harsh realities behind bars and the mental toll it took on him, according to a report in BBC. Radalj's account surfaces amid deteriorating Australia-China relations, increased scrutiny of foreign nationals in China, and international concerns over human rights within the country. His story is expected to intensify pressure on the Australian government to advocate for its citizens detained abroad and will likely further strain China's international reputation.