Foreign Ministry Responds to Tariff War: Unilateral Measures Unpopular, How Should Ordinary People Cope with Uncertainty?

3-Second Takeaway: Another Tariff War Escalation? This Time Is Different

Today, Foreign Ministry spokesperson Mao Ning made it clear: China consistently opposes unilateral tariff measures. Immediately after, the Hang Seng Tech Index plunged 3% in the afternoon, and A-shares also fluctuated. The Trump administration just proposed raising tariffs, and the market voted with its feet. Many ask: Will the trade war repeat 2018? How much will this affect our wallets?

Core Facts: Opposing Tariff War, Economic Data Already Flashing Yellow

Time: June 3, 2025, regular press conference of the Ministry of Foreign Affairs.
Subject: China (spokesperson Mao Ning) responds to the Trump administration's proposed tariff hikes.
Key Change: China reiterates opposition to unilateral tariffs, emphasizing that no one benefits from a tariff war or trade war.

Meanwhile, the OECD recently downgraded its 2026 global economic growth forecast to 2.8%, another 0.1 percentage point lower than the March forecast. The Hang Seng Tech Index fell 3% in the afternoon, while total trading volume on the Shanghai and Shenzhen stock exchanges exceeded 2.5 trillion yuan—** sharp decline with heavy volume indicates many are panicking**.

Analogy: The global economy is like a car climbing a hill; a tariff war is like letting air out of the tires—not only does it slow down itself, but all passengers will feel the bumps.

Simplified Explanation: Who Gets Hurt by This "Double-Edged Sword" of Tariffs?

Unilateral tariffs essentially impose a "toll" on cross-border goods. The U.S. hopes to protect its domestic industries this way, but the actual effect often backfires:

• Imported goods become more expensive: consumers pay more, e.g., electronics, clothing;
• Export companies under pressure: Chinese goods become more expensive in the U.S., orders may decrease;
• Supply chains get tangled: global division of labor disrupted, corporate costs skyrocket.

What's different this time is that China's stance is firmer, and the market already has expectations. The 2018 trade war was a surprise attack; now all parties are preparing ahead. For example, three years after the RCEP (Regional Comprehensive Economic Partnership) came into effect, the Guangdong port has accumulated 53.8 billion yuan in goods benefiting from the agreement, with customs duty reductions of 1.4 billion yuan—China is using its "friend circle" to hedge against unilateralism.

Impact by Group: How Will Your Life, Job, and Investments Change?

1. Investors & Stockholders

• Short-term risk: Tariff-related sectors (e.g., tech, automotive, export manufacturing) will experience increased volatility. Today, CPO concept stocks rose, but the auto sector fell over 2%, BYD down 2%. Be cautious chasing highs; focus on domestic demand and import substitution.
• Long-term signal: Southbound net buying exceeded 10 billion Hong Kong dollars, indicating smart money is bottom-fishing in Hong Kong stocks.

2. Consumers & Ordinary Workers

• Prices may rise: Imported electronics, components, and some agricultural products may become more expensive. But China has a complete industrial chain; many domestic products can substitute.
• Employment changes: Export companies may see orders shrink, but fields like high-end manufacturing and AI (e.g., Kling AI valued at $18 billion) are expanding hiring. Improving skills is more important than worrying.

3. Students & New Graduates

• Industry choices: Avoid pure export OEM; pivot to domestic consumption, tech innovation (e.g., Volcengine MaaS revenue target raised to 15 billion yuan), or regional cooperation (RCEP-related).

4. Should You Follow the Trend?

Don't panic-sell, and don't blindly bottom-fish. The tariff game is a long process; diversify investments, hold cash, and pay attention to policy trends for safety.

Neutral Pros and Cons: Rational Look at China's Stance

Advantages (China's Position)

• Moral high ground: Opposing unilateralism, consistent with WTO rules, gains international sympathy;
• Sufficient countermeasures: China has a large domestic market, can impose retaliatory tariffs, restrict rare earth exports, etc.;
• Long-term benefits: RCEP and the Belt and Road are reducing dependence on the U.S.

Disadvantages & Traps

• Short-term pain inevitable: Stock market volatility, export company layoffs may occur;
• Don't believe in "complete decoupling": The U.S. and China economies are deeply intertwined; full decoupling would be extremely costly;
• Beware of fear-mongering: Many social media accounts exaggerate panic. In reality, China's export share to the U.S. has declined from 19% in 2018 to 14% in 2024.

Light Elevation: Finding Certainty in Uncertainty

History repeatedly proves: Trade protectionism has never made any country truly great. China's active opening of RCEP and embrace of new technologies like AI (e.g., Qwen opening Agent to third parties, Volcengine's surging revenue) is using "connection" to counter "decoupling." As ordinary people, rather than worrying about tariff war escalation, it's better to strengthen your own abilities—your skills are the best hedge asset.

Interactive Question

If the U.S. actually raises tariffs, what do you think will be the biggest impact? Will imported goods become more expensive, or could jobs change? Feel free to share your thoughts in the comments.