Just after returning from the Spring Festival holiday, Chinese authorities announced four major retaliatory measures against the U.S. today in response to the U.S.’ 10% tariffs on China:
1. Retaliatory Tariffs on U.S. Goods (Effective Feb. 10, 2025)
• China will impose additional tariffs on select U.S. imports, including:
• 15% tariffs on U.S. coal and liquefied natural gas (LNG)
• 10% tariffs on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks
• Similar to U.S. measures, these new tariffs are in addition to existing ones, with no exclusion process available.
• The Feb. 10 start date provides a window for potential U.S.-China negotiations.
2. Export Controls on Critical Minerals (Effective Immediately)
• China imposed new export controls on 25 critical materials, including tungsten, tellurium, bismuth, molybdenum, and indium.
• Restrictions take effect immediately, targeting industries such as semiconductors, defense, and EV batteries.
• Exports to the U.S. will likely face denials or enhanced end-use/user reviews.
3. Two U.S. Companies Added to Unreliable Entity List (UEL)
• PVH Group (Calvin Klein, Tommy Hilfiger) and Illumina Inc. were added to China’s Unreliable Entity List for allegedly “terminating transactions with Chinese companies in violation of market principles.”
• PVH was under investigation since September 2024, while Illumina was directly listed without prior investigation.
• Specific sanctions on these firms will be announced later, depending on U.S. reactions and bilateral negotiations.
4. Antitrust Investigation Against Google
• China’s SAMR launched an antitrust probe into Google for alleged violations of China’s Anti-Monopoly Law.
• No details yet on specific violations, but this marks another escalation as Google exited the China market in 2010.
Future retaliatory measures or negotiations could shift the landscape. Multinationals should stay agile and engaged in policy tracking.
