China Slams U.S. "Unilateral Bullying" Over Russia Tariff Push as TikTok Deal Nears Finish Line (2025-09-16)
- Why Is China Calling U.S. Tariff Pressure "Economic Coercion"?
- What's the TikTok Deal That Emerged Amid Trade Tensions?
- How Does Nvidia Fit Into This Geoeconomic Chess Game?
- What Are the Sticking Points in Broader Trade Negotiations?
- Why Does the Russia Factor Complicate Matters?
- What Comes Next in This High-Stakes Negotiation?
- Frequently Asked Questions
In a fiery exchange during high-stakes trade talks, China has accused the U.S. of "economic coercion" for pushing G7 allies to impose secondary tariffs targeting Chinese imports supporting Russia. The confrontation comes as negotiators simultaneously reached a breakthrough on TikTok's ownership transfer and China launched a surprise antitrust probe against Nvidia - revealing the complex web of economic tensions between the superpowers. Here's why these developments matter for global markets.
Why Is China Calling U.S. Tariff Pressure "Economic Coercion"?
The Chinese commerce ministry didn't mince words during the Madrid negotiations, labeling Washington's push for allied tariffs as "a classic example of unilateral bullying." This refers specifically to U.S. efforts to convince NATO members to sanction Chinese companies still purchasing Russian oil. From Beijing's perspective, this constitutes overreach - they've maintained since 2022 that energy trades with Russia fall under normal bilateral relations. "We don't intend to play sanctions whack-a-mole just because Washington says so," one Chinese trade official remarked anonymously.
What's the TikTok Deal That Emerged Amid Trade Tensions?
In an unexpected bright spot, U.S. Treasury Secretary Scott Bessent confirmed a tentative agreement to transfer TikTok's U.S. operations to American control. The framework - expected to be finalized during a Xi-Trump call on Friday - represents progress after the 2024 Congressional ultimatum threatening a TikTok ban. Interestingly, Trump's Truth Social post hinted he'd fight to preserve the app where he boasts 15M followers: "A deal was reached on a 'certain' company that young PEOPLE very much wanted to save."
How Does Nvidia Fit Into This Geoeconomic Chess Game?
China's market regulator chose negotiation day to announce an antitrust investigation into Nvidia, with officials citing preliminary evidence of monopoly violations. Most analysts see this as retaliation for U.S. semiconductor export controls. "The timing couldn't be more transparent if they'd used a neon sign," quipped BTCC market analyst Liam Chen. The probe specifically examines whether Nvidia abused its 78% share in AI accelerator chips - a critical technology in the ongoing tech cold war.
What Are the Sticking Points in Broader Trade Negotiations?
Beyond TikTok, talks revealed fundamental disagreements:
- China demands rollbacks on tech restrictions before approving TikTok's algorithm transfer
- U.S. insists national security concerns override commercial interests
- Rare earth exports remain frozen despite both sides calling for de-escalation
As U.S. Trade Representative Jamieson Greer noted: "To narrow complex issues down to actionable items in this environment is remarkable."
Why Does the Russia Factor Complicate Matters?
The WHITE House continues linking China's Russia trade to broader economic penalties, while Beijing frames this as illegitimate "secondary sanctions." With China accounting for 45% of Russia's energy exports (per TradingView data), this dispute won't resolve easily. As one EU diplomat observed: "It's like watching two sumo wrestlers trying to tango while arguing about the music."
What Comes Next in This High-Stakes Negotiation?
All eyes turn to Friday's leader call, which could:
- Finalize TikTok ownership terms
- Establish working groups on tech restrictions
- Potentially unfreeze rare earth shipments
But don't expect dramatic breakthroughs - as the BTCC research team notes, these talks represent damage control more than détente. One thing's certain: with midterm elections approaching, neither side wants to appear weak. As always in geopolitics, perception matters as much as substance.
Frequently Asked Questions
What triggered China's accusation of U.S. "unilateral bullying"?
China reacted to U.S. efforts to convince G7 and NATO allies to impose secondary tariffs on Chinese goods, arguing this constitutes economic coercion beyond legitimate sanctions.
How significant is the tentative TikTok agreement?
It marks the first tangible progress since Congress' 2024 ultimatum, though details about algorithm transfers and operational control remain unresolved ahead of Friday's leader call.
Why did China investigate Nvidia during trade talks?
The antitrust probe appears retaliatory for U.S. semiconductor export controls, demonstrating China's willingness to weaponize regulatory actions in trade disputes.
