China warns US against 'talks and threatening' approach

China on Wednesday reiterated its position on economic and trade issues with the US, warning that trade wars and tariff wars have no winners, and that asking for talks while threatening high tariffs and new curbs is not the right way to deal with China. It called on the US to resolve relevant issues through dialogue and consultation on the basis of equality, respect, and mutual benefit.

Chinese Foreign Ministry spokesperson Lin Jian made the remarks at a regular press briefing in response to Washington's relentless pressure on China, particularly its claims that it might stop importing cooking oil from China and it depended on China whether additional 100 percent tariffs on its exports to the US kick in on November 1 or sooner.

Chinese analysts said that the US has continuously sent disruptive signals, undermining the normal economic and trade order between the two countries. China doesn't fear intimidation, and this round of tariff frictions shows once again that every attempt by the US to exert pressure has failed to achieve its intended effect. What the US needs to understand now is how to get along with China and cooperate for mutual gain.

Mutual respect

The US administration threatened on Tuesday to halt purchases of Chinese cooking oil in response to China's reduced imports of American soybeans.

In response, Lin said China's position on the economic and trade issues between China and the US is consistent and clear. Tariff and trade wars have no winners and do not serve any party's interest.

"The two sides need to address relevant issues through consultation on the basis of equality, respect and mutual benefit," Lin noted.

An industry insidertold the Global Times on Wednesday that Washington's claim about "terminating business with China related to cooking oil" likely refers to suspending imports of China's used cooking oil (UCO).

Used cooking oil, once collected and processed, can be utilized as a raw material for renewable energy products such as biodiesel, the insider said. As the world accelerates its green transition, demand for used cooking oil has exceeded supply both in domestic and international markets.

"Even if the US stops buying from China, there is no shortage of buyers for China's used cooking oil," the insider said, stressing that such a move would ultimately prove ineffective as leverage against China.

Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, echoed the view, noting a relatively large portion of the edible oil trade between the US and China consists of imported used cooking oil rather than fresh cooking oil, which is used to produce biofuel, driven by US demand as China has a relatively cost-effective advantage in this area.

According to the data on the website of the US Department of Agriculture (USDA), China's exports of UCO reached a record high of $2.64 billion in 2024, with the US being the top export market for China's UCO at 1.27 million metric tons, accounting for approximately 43 percent of China's total UCO exports.

The US' 43 percent amounted to just around $1.14 billion of the total value, according to China customs, which was almost "negligible" given that the total US-China bilateral goods trade reached $688.28 billion in 2024.

In the light of the USDA, US vegetable oil imports, including cooking oils, originate from a few major suppliers including Canada, Indonesia and EU.

Moreover, the UCO, which is used to produce renewable diesel, is in high demand in other countries and regions as well, Ma Wenfeng, a senior analyst at the Beijing Orient Agribusiness Consultancy, told the Global Times, noting that China's exports of UCO to Europe have increased in recent years.

The US imports of UCO are insignificant compared with China's imports of US soybeans in terms of value. According to the CNBC report, China has been the top buyer of US soybeans by far, importing some 27 million metric tons valued at nearly $12.8 billion in 2024 alone.

China has historically imported more than 60 percent of the world's soybean supplies, with the US once serving as its top source. But retaliatory tariffs now make US soybeans 20 percent more expensive than South American supplies, and China has turned to Brazil, which has expanded production to meet demand, according to the American Soybean Association.

In August, the association urged the US government to secure a deal with China that reopens this vital market for US soybeans.

"Amid mounting domestic pressure, the US government keeps ratcheting up threats of trade restrictions against China. However, it is exactly the US government's such unreasonable measures, especially steep tariffs, that have caused losses on US farms," Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Wednesday.

As for China's purchase of US soybeans, there is also market factor, Li said, noting that soybeans from countries like Brazil is cheaper with good quality and thus some Chinese importers tend to diversify import sources.

On September 22, Li Chenggang, China's international trade representative with the Ministry of Commerce and vice minister of commerce, met with a delegation of political and business leaders from the US Midwest, exchanging views on China-US economic and trade relations and sub-national cooperation, according to a statement on the ministry's website.

The US Midwest is a key region for US agriculture and manufacturing and has close trade ties with China. The communication and interactions between the Chinese side and US political and business circles from the region reflects a broad willingness at the local level to engage in bilateral economic cooperation, Chinese analysts said.

'Return to reason needed'

The US has continuously sent disruptive signals, disturbing the normal economic and trade order between China and the US, ranging from the recent imposition of additional port fees on Chinese ships following the so-called Section 301 investigation, which took effect on Tuesday, to claims of imposing 100 percent additional tariffs on China and new export controls on software, which is claimed to take effect on November 1.

In the past few days, Washington has continued sending mixed signals regarding the trade with China.

Responding to a media inquiry regarding US Trade Representative Jamieson Greer's claims that whether the additional 100 percent tariffs on Chinese goods kick in on November 1 or sooner depended on what China does, and that Chinese officials made contradictory statements about the latest rare earth export restrictions, Lin said at the press conference on Wednesday that competent authorities have made clear China's position on the export control measures on rare earths and related items.

"China took export controls on relevant items in accordance with the law to better safeguard world peace and regional stability, and fulfill non-proliferation and other international obligations. The measures are consistent with international practice. China's position has been consistent and clear," Lin said.

The spokesperson said that it is the US who asks for talks while threatening high tariffs and new restrictions, which is not the right way to deal with China.

"We urge the US to correct its wrong approach as early as possible and address relevant issues through dialogue and consultation on the basis of equality, respect and mutual benefit," said Lin.

Speaking at the National Committee on US-China Relations Annual Gala Dinner, Xie Feng, Chinese Ambassador to the US, said that "the US side needs to return to reason, stop applying maximum pressure, work with China to resolve each other's concerns through dialogue based on mutual respect and equal-footed consultation, and avoid treading the old path of escalating tensions in economy and trade, which will only lead nowhere," according to the website of the Chinese embassy on Wednesday.

What the US needs to understand now is how to get along with China - cooperate for mutual gain, He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Wednesday. He noted that China has never feared threat and intimidation, and this round of tariff frictions shows once again that every attempt by the US to exert pressure has failed to achieve its intended effect.

It is important for the US to understand that China will not sacrifice its principles or international fairness and justice for any deal, He Weiwen said, urging the US to recognize that every measure it takes against China carries consequences and that the relationship should be one of "mutual benefit through cooperation."

At the same time, the Chinese expert noted that China's openness has always been global. "China is always willing to cooperate with the US to achieve mutually beneficial outcomes, as reflected in foreign trade data. Moreover, China's markets beyond the US are also vast," he said.