China says it is ready for ‘shocks’ as fresh Trump tariffs loom

Unlock the White House Watch newsletter for free

Your guide to what the 2024 US election means for Washington and the world

China said it was ready for any “unexpected shocks”, ahead of US President Donald Trump imposing higher tariffs on the world’s second-biggest economy and rival superpower.

Premier Li Qiang, responsible for the Chinese economy under leader Xi Jinping, told foreign business leaders gathered in Beijing on Sunday that uncertainty and instability were rising, but China would choose the “correct path” of globalisation and multilateralism. 

“We have preparations for possible unexpected shocks, which of course mainly come from external sources,” Li said. 

The US is expected to impose additional levies on imports from China on April 2, when it unveils “reciprocal tariffs” on countries around the world. 

The cautionary tone from the Chinese premier comes as Beijing tries to improve consumer and investor sentiment, while also preparing potential retaliatory measures against future US tariffs and sanctions. 

Since taking office, Trump has already slapped 20 per cent tariffs on goods from China, in a move the White House says is designed to pressure Beijing to crack down harder on companies that make the ingredients for fentanyl, a sometimes deadly synthetic opioid that has triggered an epidemic of drug use in the US.

Li’s comments come as countries and companies brace for the impact of the reciprocal tariffs amid expectations that Trump is not inclined to give waivers before the deadline. 

There have been very few top-level talks between the US and China since Trump took office, barring one phone call between the president and President Xi Jinping. 

Trump last week said Xi would come to the US in the “not too distant future”, but people familiar with the conversations in Washington and Beijing said there had been no discussion about Xi travelling to America.

Later on Sunday, Li is expected to meet Steve Daines, a Republican senator from Montana who is very close to Trump. Daines, who previously worked in China on business, on Saturday met vice premier He Lifeng, in a rare meeting between a senior American lawmaker and top Chinese official. 

Daines’ office said he used his meeting with He to reiterate Trump’s call for China to halt the flow of chemicals used to make fentanyl. It added that the senator had “expressed hope that further high-level talks between the United States and China will take place in the near future”.