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Trump appoints yet another China-hawk Peter Navarro as a senior counselor for trade and manufacturing

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US President-elect Donald Trump has appointed Peter Navarro, his former economic adviser who has been under Beijing’s sanctions since 2021, as senior counselor for trade and manufacturing for his upcoming term in the White House. At 75, Navarro will assist in the “successful advancement and communication of the Trump manufacturing, tariff, and trade agendas,” Trump announced on social media on Wednesday. 

Trump praised Navarro’s past performance, stating, “During my first term, few were more effective or tenacious than Peter in enforcing my two sacred rules, Buy American, Hire American.” He added that the new role would capitalize on Navarro’s “broad range of White House experience.”

During Trump’s first term, Peter Navarro held the position of director for the newly established White House National Trade Council. Known for his strong advocacy of protectionist trade policies, Navarro has consistently supported measures to shield American industries. He vigorously defended tariffs on $370 billion worth of Chinese imports in this role and pushed for national security tariffs on aluminum and steel.

Peter Navarro was a key architect of America’s trade war with China and was among the 28 senior officials sanctioned by Beijing the day after President Joe Biden took office in January 2021.  At the time, the Chinese foreign ministry stated that Navarro and the other sanctioned Americans “seriously violated China’s sovereignty and are primarily responsible for China-related issues.”

Those sanctioned were barred from entering Chinese territory, including Hong Kong, and companies affiliated with them were to face business restrictions in China. Navarro’s appointment marks him as the second member of Trump’s new administration to be sanctioned by Beijing.

He joins Marco Rubio, a US senator from Florida and a known China hawk who has been sanctioned twice by Beijing. Rubio, selected by Trump as the next secretary of state, is currently awaiting confirmation by the US Senate. Additionally, Trump has already appointed cabinet secretaries and a national security adviser who have expressed a strong stance on confronting China.

Peter Navarro is among those American politicians who blame China for the spread of the coronavirus. In an interview given to CNBC, Peter Navarro said that Beijing has not taken measures to limit the travel of infected citizens abroad.

“They banned flights from Wuhan to Beijing and Shanghai, but at the same time allowed flights to Milan and New York. Hundreds of thousands of Chinese spread the virus widely, creating a prerequisite for the spread of the pandemic. China has caused serious damage to the world and China will have to pay the price.”- said Navarro.

Navarro, a Harvard-educated economist, rose to prominence with his 2011 book “Death by China,” in which he accused China of currency manipulation and intentionally harming Americans with dangerous consumer goods.

In his book, Navarro proposed measures to counter these actions, such as preventing Beijing from pressuring American companies to transfer technology to their Chinese partners. Many of Navarro’s recommendations were later adopted by the Trump administration.

In a critical article by MSNBC, it is highlighted that Navarro’s return signals Trump is as serious as ever about pursuing an aggressive tariff strategy, unraveling free trade norms and agreements, and potentially escalating trade wars with China. 

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China Bans Key Mineral Exports to U.S., Escalating Trade Tensions

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On Tuesday, 3rd of December, China banned the export of key minerals—gallium, germanium, and antimony—to the United States. These minerals are essential for military and tech applications, and the move is a significant escalation in the ongoing trade tensions between the two countries. This comes just a day after the U.S. imposed new restrictions on China’s semiconductor industry.

China has been gradually tightening controls on critical mineral exports, but this new ban targets only the U.S. The Chinese Commerce Ministry cited national security concerns and said that the export of these minerals to the U.S. would no longer be allowed. Gallium and germanium are important for semiconductors and infrared technologies, while antimony is used in weapons and ammunition. Graphite, which is also affected by the new rules, is a key component in electric vehicle batteries.

“To safeguard national security interests and fulfill international obligations such as non-proliferation, China has decided to strengthen export controls on relevant dual-use items to the United States,” the ministry said.

The U.S. government is reviewing the situation and says it will take appropriate action. A White House spokesperson emphasized the importance of diversifying supply chains to reduce reliance on China.

Data shows that, so far, no germanium or gallium has been shipped to the U.S. this year, although these minerals were once major exports. China’s shipments of antimony also dropped sharply in October after the export restrictions were announced.

The move is seen as part of China’s strategy to protect its military and technological interests. Some U.S. companies have warned that China is “weaponizing” access to critical minerals. Perpetua Resources, a company developing an antimony mine in Idaho, said the U.S. needs to reduce its dependence on Chinese minerals.

The timing of China’s export ban is notable, as it follows the U.S.’s third crackdown on China’s semiconductor industry. The trade war between the two countries continues to intensify, with both sides imposing tariffs and restrictions. 

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Baerbock Confronts China Over Support for Russia in Ukraine Conflict

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German Foreign Minister Annalena Baerbock has sharply criticized China for providing economic and military support to Russia in its ongoing war against Ukraine, warning that Beijing’s actions are threatening peace in both Europe and the Indo-Pacific. In a statement ahead of her visit to Beijing next week, Baerbock accused China of undermining global security by opposing core European interests through its backing of Russia.

“Instead of taking responsibility for peace and security in the world as a permanent member of the U.N. Security Council, China is opposing our core European interests with its economic and weapons aid to Russia,” Baerbock said. The minister is scheduled to meet with her Chinese counterpart, Wang Yi, to discuss a range of issues, including the war in Ukraine.  

Baerbock emphasized that Russia’s invasion of Ukraine is not only a direct threat to European peace but also has global ramifications. She noted that the war shows how European security is closely tied to security in Asia, particularly when North Korea sends soldiers and weapons to support Russia while Moscow helps Pyongyang to advance its nuclear program. “If North Korea sends soldiers and weapons against Ukraine, while Russia supports Pyongyang’s nuclear programme, then this jeopardises peace both here and in the Indo-Pacific,” she said.

In response to Baerbock’s comments, a Chinese Ministry of Foreign Affairs spokesperson, Lin Jian, rejected the accusations. “China firmly opposes baseless accusations and scapegoating, as well as political manipulation,” Lin said, reiterating China’s long-standing position on the Ukraine conflict. China has maintained that it is neutral in the war, stating that it does not provide lethal assistance to either side, unlike the United States and other Western nations. However, China’s close political and economic ties with Russia have led NATO members to label Beijing a “decisive enabler” of the war, which it has never condemned.   

 The German foreign minister has been a strong advocate for Ukraine, consistently calling on Beijing to take a firmer stance against Russia’s invasion. In an interview last year, she made a direct comparison between Russian President Vladimir Putin and Chinese President Xi Jinping, suggesting that a Russian victory would embolden other dictatorships around the world. “If Putin were to win this war, what sign would that be for other dictators in the world, like Xi, like the Chinese president?” Baerbock said in September 2023.

 As Baerbock prepares for her visit to China, the future of the German-Chinese relationship is at a crossroads, with competing priorities on issues of economic cooperation, global security, and human rights. They will have to balance these challenges so that China-Europe relations are stable in the coming years.  

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Lithuania expelled three employees of the Chinese embassy

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According to the Foreign Affairs Ministry of Lithuania, the country declared three Chinese embassy staff as personae non grata and gave them three weeks to leave the country. The ministry based its decision on the Vienna Convention and Lithuanian legislation but provided no further details.

Even before the expulsion, the relations between China and Lithuania were tense. Two main reasons thereof are the support of Taiwan and the suspected involvement of a Chinese ship in the damage of sea cables. The latter refers to the severing of two Baltic Sea telecommunications cables, including one connecting the Swedish island Gotland and Lithuania, at the start of November. The suspicions over Chinese involvement are based on the route of a Chinese ship, Yi Peng 3 – according to the tracking sites, the ship sailed over the cables around the time of the damage. Finland, Sweden, and Lithuania started the investigation into the severing of the cables as a joint team, with the assistance of Eurojust, the European Union criminal law cooperation agency.

According to the statement made by the Chinese Foreign Ministry, China strongly condemns and opposes the decision made by Lithuania and reserves the right to implement countermeasures. The Ministry underlines that Lithuania has presented no reasoning for deeming Chinese staff unwelcome. The subject of Taiwan is discussed in the same statement as well and mentions the „serious violation of the One-China principle“ by Lithuania, which, according to the Ministry, created challenges in Chinese-Lithuanian relations. For context, the mentioned „violation“ refers to allowing the creation of a De Facto Taiwanese embassy in Lithuania.

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Chinese and Russian military air patrol in the airspace of the Sea of Japan

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The Chinese and Russian military have carried out their ninth joint air patrol, which, in this case, took place in the airspace of the Sea of Japan. The project is part of a cooperation agreement between the two countries since 2019.

According to the Chinese media platform CCTV, the patrol aims to test and improve joint training and enhance the two air force operational capabilities.

Some of the aircraft involved in the training appeared in the Air Defense Identification Zone (ADIZ) of South Korea, after which the country launched its fighter jets. However, Chinese and Russian aircraft left the zone after 4 hours without incident. South Korea underlined that air patrol was organized without alerting the country beforehand.

Despite the fact that, in general, countries demand the identification of the aircraft that enter their ADIZs, these zones are not a part of any sovereign state and some of the ADIZs even overlap.

Chinese National Defense Ministry spokesperson commented on said training and stated that it „does not target any third party and has nothing to do with the current international and regional situations“.

Chinese state-backed media Global Times writes according to a Chinese military expert and underlines the strategic importance of used territories in the program. It states that it is normal when two countries organize patrol on their „doorstep“.

 

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Trump’s Trade War Architect, Jamieson Greer, Set to Lead U.S. Trade Strategy in Second Term

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US President-elect Donald Trump announced that he has chosen trade lawyer Jamieson Greer to be the next U.S. Trade Representative (USTR), a critical position that will shape the administration’s economic and trade strategies in his second term. Greer, a seasoned expert in trade law, is being tapped to lead the charge on the administration’s aggressive trade policies, particularly toward China and North America.

Trump highlighted Greer’s pivotal role in his first term’s major trade actions, including the high-stakes trade war with China and the renegotiation of the North American Free Trade Agreement (NAFTA), which became the U.S.-Mexico-Canada Agreement (USMCA). “Jamieson played a key role in the success of my first term trade policies, including standing firm in the trade war with China and making USMCA a much better deal for American workers,” Trump said in a statement.

Greer, who previously served as Chief of Staff to Robert Lighthizer, Trump’s former U.S. Trade Representative, was deeply involved in the negotiations that led to the “Phase 1” trade deal with China in 2020. Under that deal, China committed to purchasing $200 billion in U.S. goods over two years—though this target was never fully met, partly due to the disruptions caused by the COVID-19 pandemic.

Greer’s selection signals that Trump’s second-term trade policies will double down on confronting China, whose state-driven trade practices have long been a focus of the administration. Greer has been vocal about the need for a tougher approach to China, especially in areas like technology and manufacturing. He recently testified before the U.S.-China Economic and Security Review Commission, advocating for more robust tariffs and export controls to protect U.S. industries. “The Chinese government’s use of trade to support its military and state-owned enterprises is a critical threat,” Greer told lawmakers, underscoring the national security risks posed by China’s growing influence in global markets. 

Greer’s selection as USTR is just one part of Trump’s broader strategy to overhaul U.S. economic policy and trade relations. As the administration begins to set its course for the next four years, Greer’s role will be pivotal in shaping the future of U.S. trade policy and in ensuring that Trump’s economic vision remains a central focus of his presidency.

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No Deal About EU Tariffs on Chinese Electric Vehicles; EU Proposes New Sanctions Against Chinese Companies 

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EU and Chinese officials are discussing alternatives to EU tariffs on Chinese electric cars this week.  EU officials said on Monday that there was no prospect of an immediate resolution to the issue.

Bernd Lange, chairman of the European Parliament’s trade committee, hinted to a German broadcaster on Friday that a deal between the 27 countries to replace tariffs between the EU and China with another measure is nearing completion.

However,  Reuters reports that EU officials, speaking on condition of anonymity due to the sensitive nature of the negotiations with Beijing, refuted this claim. They clarified that while discussions are ongoing, significant obstacles remain, preventing a deal from being finalized.

Negotiations were preceded by Xi Jinping’s conversation with German Chancellor Olaf Scholz. During the G20 meeting in Rio de Janeiro, President Xi Jinping urged Scholz to facilitate the resolution of the EU’s tariffs on Chinese electric vehicles, as reported by state television CCTV.

In early October, The EU green-lit significant tariffs on imports of Chinese electric vehicles after receiving broad support from member states. These tariffs are expected to increase from the current 10% to as much as 45% over the next five years. The European Commission, which conducted the vote, emphasized that the EU and China would “work hard to explore an alternative solution” to the tariffs. In response, China’s Commerce Ministry denounced the decision as “unfair” and “unreasonable,” but acknowledged the possibility of resolving the issue through negotiations.

EU member states were divided on imposing tariffs on Chinese electric vehicles. Germany, whose automotive industry relies heavily on exports to China, opposed the tariffs. Many EU members abstained from the vote. However, France, Italy, the Netherlands, and Poland supported the import taxes. The proposal for tariffs could only have been blocked if a qualified majority of 15 member states had voted against it.

Amidst the escalating trade tension between the two blocs, there are calls for cooperation on the Chinese side.  Chinese Foreign Minister Wang Yi highlighted on Monday that China and the European Union should see each other as partners rather than adversaries. He encouraged both sides to think from each other’s perspective and seek partnership. 

Despite efforts on both sides, it is clear that EU measures against China will not be limited to import tax increases in certain sectors. As of Monday, it became known that the EU is set to sanction several Chinese firms alleged to have assisted Russian companies in developing attack drones used in Ukraine. 

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Trump’s Tariff Gambit: Steep Taxes on China, Mexico, and Canada to Combat Immigration and Drug Crisis

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Donald Trump has announced that he will impose steep tariffs on China, Mexico, and Canada on his first day back in the White House. He said these steps are necessary to get these countries to take more serious measures against illegal immigration and drug trafficking into the United States. 

In a post on his Truth Social platform, Trump detailed his plans, stating that he would sign an executive order on January 20 imposing a 25% tariff on all imports from Mexico and Canada. Following one more post, Donald Trump attacked China for failing to act on promises to impose the death penalty on those trafficking fentanyl, a drug he claims is entering the U.S. in unprecedented amounts, mostly via Mexico. To take care of this problem, he announced plans to put an additional 10% tariff on all Chinese imports until the flow of drugs into the U.S. is stopped. Trump framed this as a necessary measure to combat the crisis and urged attention to the matter.

In response to Trump’s announcement of additional tariffs on Chinese goods, a spokesperson for the Chinese Embassy in Washington, Liu Pengyu, stated that economic cooperation between China and the U.S. is mutually beneficial, warning that “no one will win a trade war or a tariff war.” The Chinese spokesperson pointed to ongoing cooperation between the two nations’ counternarcotics authorities, citing resumed communication since the San Francisco Summit. China, the spokesperson said, has shared updates with the U.S. on its drug enforcement efforts and responded to U.S. requests for information, rejecting claims that China knowingly permits fentanyl-related exports.  

According to Swati Dhingra, a member of the Bank of England’s monetary policy committee, any proposed 60% tariffs by Donald Trump on imports from China might have complex implications for the global economy by compressing global inflation, “because goods are cheaper for everybody else.”. Speaking at a London conference, Dhingra explained that Chinese exporters might react to such steep tariffs through price-cutting in alternative markets in their efforts to maintain the volumes of trade, an action which could make goods cheaper worldwide, including in the UK.

However, she qualified that the effect will be variable, pending the reaction of other countries. Should governments retaliate by imposing their own tariffs or protectionist moves, a trade war could spiral out of control, damaging the world economy. Higher inflation may be in store for the U.S. since American consumers bear the tariff cost; however, global prices of those kinds of goods may drop as Chinese exporters adjust to new trade barriers. 

As Trump’s proposals spark debate, the implications of his aggressive trade policies remain uncertain. What is clear is that his return to office would bring a sharp shift in U.S. economic and foreign policy, with tariffs once again taking center stage.

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NATO Leader Urges Businesses to Prepare for Wartime Amid Rising Dependence on China and Russia

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A senior NATO military leader has urged companies to prepare for a possible wartime situation by rethinking their supply chains to reduce pressure from rival countries such as Russia and China. Admiral Rob Bauer, chairman of NATO’s Military Committee, stressed that economic reform is as important as military capability in maintaining national security. 

Speaking at an event organized by the European Policy Institute in Brussels, Bauer explained that deterrence is not limited to military force but includes the ability to maintain critical goods and services in any situation. ”If we can make sure that all necessary services and resources can be provided no matter what, that’s an important part of our prevention,” he said.

He highlighted growing threats, including acts of sabotage and geopolitical pressures that have already tested Europe’s resilience. “We thought we had a deal with Gazprom, but in reality, it was a deal with Vladimir Putin,” Bauer noted, referring to Russia’s use of energy supplies as a tool for political leverage. “The same goes for Chinese-owned infrastructure and goods. When we make deals with Chinese companies, we’re effectively making deals with President Xi Jinping.” 

Bauer warned that the West is overly dependent on China for basic supplies. China currently produces 60% of the world’s rare earth resources and processes 90% of them, materials needed for technology, defense and renewable energy. Furthermore, he noted that many medicinal products, such as sedatives, antibiotics, antibiotics, and antihypertensives, come from China.

“We are naïve to think that the Chinese Communist Party never uses this leverage,” Bauer warned.  

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Meeting on Chinese cyber-espionage campaign in the White House

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On November 22nd, the top US telecommunications representatives and National Security officials held a meeting in the White House. The main topic thereof was the Chinese cyber-espionage campaign.

The campaign has great meaning for the sector, seeing as its targets have become the most prominent American political figures, such as newly elected President Donald Trump and vice president JD Vance. Apart from this, according to the US, China-affiliated hackers accessed data meant for American law enforcement via cyber-attacks on telecom companies.

During the meeting, telecom representatives advised the government on the ways it could ensure protection against such attacks. Additionally, the sides exchanged intelligence on these topics.

According to the FBI, the number of victims of the campaign is fewer than 150, although they believe that the damage was spread to many more people through these victims via text messages and calls.

China denies accusations of this cyber-espionage campaign. Chinese Foreign Affairs Ministry speaker made a statement before the above-mentioned meeting took place. On November 14th, he underlined that „[China has] no interest in interfering in other countries’ internal affairs through cyberspace and oppose[s] spreading China-related disinformation out of a political agenda“. State-affiliated media platform Global Times talks about the experts, who „revealed that the US deliberately fabricates evidence of cyberattacks to tarnish China’s image“. To prove this point, they use factors such as the anonymity of the sources and lack of substantive arguments.

 

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