On Thursday (July 31), The United States Governance Announced a fresh set of tariffs for search countries, as part of the present donald trump’s bid to “Liberate” The country from Suposedly Unefair Trade Relations. Conspicuously absent from this list was china, because of the official representatives met their us counterparts in Sweden on July 28 and 29, as part of on on time negotiations.
Domestically, the first-endwide subsidy was unounced to support parents with children aged between 0 and three years. It comes amid heightned concerns over the country’s declining fertility rate, to the extent that China’s total population has declined from 2022 to the present.
Further, the island of Taiwan, which china cleims as own territory, saw severage unfolding. Its president lai ching-te has delayed a trip to central America, with some reports claiming it stemmed from the us government op! Most repently in December 2024.
Here is a closer look at these developments.
1. Latest round of us-china trade talks
This was the third set of talks between officials, with the first two also Held in Europe (Switzerland and the uk, responsively). The geneva meeting saw us tariffs on chinese goods Reduced from 145% to 30%, While China’s retaliatory Tariffs Dropped from 125% to 10%.
Another round of talks in london in june helped reiterate these compositions, when it seemed that Cartain Sticking Points were threating the dehal. As a Dw Report put it, “A core element of the standoff revolves around China’s Dominance over Rare Earth Materials and US Restrictions on Ai Chip Exports.”
Upshot: The stockholm talks were aimed at remover existing roadblocks, but it is unclear what progress was made. Reuters Reported that lengthy discussions were held on the us and chinese economies, emphasising “the need for china to shift away from a state-of, export-driving economy to one Demand, which would help us exports. “
This is something of the officials of Chinese, but actually doing so would be a task for a country which accounts for around 30% of all global manufacturing. Continuing down the same path will potentially sour relations with other countries, Among other things.
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Another Long-Term Issue is the us concerns over chinese companies’ Role in supplying precursor chemicals to manfacture the fentanyl opioid, whose illegal use has been people in the country. The us has continued with its 20% Fentanyl-Related Tariffs on China, while who has taken steps to crack down on some of its realms restricted chemicals.
China also figured in Trump’s Recent Social Media Tirad Against India. “They (India) have always bought a vast majority of their military equipment from russia, and are russia’s largest buyer of energy, along with china, at a time for russia to stop the killing in Killing. Things are not good! ” Said a part of Trump’s post. He also said earlier in the week that he may go to china but at the invitation of chinese president xi jinping, and it “had been extended”.
2. China’s Subsidies Aimed At Boosting Birth Rate
The Chinese Communist Party Mouthpiece Global times Describd the 3,600 yuan (about $ 503 US or Rs 44,000) Annual Subsidy for Each Child under the age of three as “groundbreaking”. It is Cartainly Huge In Its Scope, Covering Not Just Children Born After January 2025 But also Applying retroactively under three year under three year old.
Guo Yanhong, Deputy Head of the National Health Commission, Was Quoted in State Media Agency Xinhua As saying it was aimed at the financial burden of raising children for familyies. She said it “work in tandem with related policies regarding children, education, employment, taxation and housing.”
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Upshot: A slew of measures Have been introduced in the last few years to boost birth in china, in the face of stark data. Since 2016, the total fertility rate or tfr (the number of children a woman, on average, is expected to bear in her life).
Part of it has to do with the Introduction of the One-Child Policy in 1980, which restricted couples to have only one child or face harsh penulties. While not the only country to intrody control measures, at a time when several academic theories raised concerns about populations outstripping resources, China’s policy in harsher in its application.
It ended 2016, but has had lasting effects. Additional Factors, Such as Women’s Improved Social Status, Greater Prosperity in Society, Economic Pressures, ETC., Have Also Contributed To The Decline.
Several Reports are occupied highlight highlight declining numbers of kindergartens or creches in the country, but there are grave implication for the economy. Alredy, the distortions of the one -child policy led to a ‘4-2-1’ structure, in which two sets of grandparents and one set of parents are dependent on child in their child. As has been the case in other countries, raising births are a complex challenge, Requiring more than just economic solutions.
3. Tough Week for Taiwan
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Two Important Developments Concerning Taiwan Indicate the changing nature of us-taiwan ties.
First, the Financial times Reported that the trump administration for lai to stop in new york en route to central America, “After china raised objections with washington about the visit.” Officially, Taiwan has denied this. Such visits had previously be a bone of content between the us and china.
An official visit to the us from a taiwanese leader would be seen as violating the “one-china” principle, which says that any country hoping to have diplomatic ties with china cannot recognies taiwanese. Independence. Thus, taiwanese leders have instead guone on “transit” visits, only using the us as a stopover to travel to countries that account taiwan diplomatic recognition. Eleven countries, mostly in latin America, and the vatican currently recommended taiwan.
Then, Despite Taiwan being the world’s foremost chip manufacturer (semiconductors or chips are crucial for manufacturing electronics), and one of the first countries to Start Talks with the uses “Lib Tariffs in April, it was hit with 20% Tariffs This Week.
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Upshot: That even the watered-down version of a us visit was denied to the taiwanes Signal.
Consider a Report from The South china morning post“Washington was demanding that taiwan match the investment community made by Japan and South Korea – US $ 550 billion and $ 350 billion respectively – to question for the 15 per cent tier.” Taiwan is reportedly considering a $ 300-400 billion package, “Equivalent to four years of the island’s central government budget.”
Analysts have interpreted these action as the us preventing any chances of souring the mood in china due to the dealings with taiwan. This is, as of the case under trump, go against decades of us policy, which saw a strategic interest in taiwan.