April 23, 2025

ICAS Bulletin (online ISSN 2836-3418, print ISSN 2836-340X) is published every other week throughout the year at 1919 M St NW, Suite 310, Washington, DC 20036.
The online version of ICAS Bulletin can be found at chinaus-icas.org/bulletins/.

- What's Going On? -

Escalating U.S.-China trade tensions shaken global supply chains

President Trump holds a Cabinet meeting - April 10, 2025 (Source: Official White House Photo by Daniel Torok via Flickr, public domain)

– On April 18, British Prime Minister Keir Starmer spoke with President Trump to discuss trade and global issues, as the UK seeks a deal following Trump’s imposition of 10–25% tariffs on British imports, including cars, steel, and aluminum.

– The U.S. lobbied hard to counter Beijing’s pressure campaign, which offered investments and threatened retaliation ahead of the EU’s vote on tariffs against Chinese EVs.

– China’s ambassador to Spain urged the EU to strengthen ties with Beijing and resist U.S. “economic abuse,” calling for the removal of European export controls and EV tariffs while promoting China-EU cooperation as a counterweight to Trump’s unilateral trade agenda.

– Spanish Prime Minister Pedro Sanchez met with Chinese President Xi Jinping and emphasized the need for mutually beneficial relations and balanced trade and investments.

– The EU and China agreed to begin talks on setting minimum prices for Chinese-made electric vehicles as an alternative to existing EU tariffs of up to 45.3%, with negotiations backed by Germany’s auto industry and aimed at resolving trade tensions through enforceable price commitments.

Trade War stir up internal debate in the U.S.

On April 16, 2025, Chair Powell delivered remarks on the economic outlook at the Economic Club of Chicago. (Source: Federal Reserve via Flickr, public domain)

– Senate Minority Leader Chuck Schumer announced plans to force a Senate vote to overturn Trump-era tariffs, but acknowledged the greater challenge lies in the House, where Republican support remains firm.

– President Trump replaced acting IRS chief Gary Shapley amid a power struggle between Treasury Secretary Scott Bessent and Elon Musk, after Bessent objected to Shapley’s appointment—reportedly pushed through by Musk without Treasury’s approval.

– JPMorgan CEO Jamie Dimon warned against complacency amid praise for Trump’s tariff tactics, urging caution and noting that no one has a “divine right to success,” reflecting ongoing skepticism in the business community despite some conservative approval.

– President Trump attacked Fed Chair Powell for not cutting interest rates, and threatened to remove him despite legal uncertainty. Previously, Fed Chair Jerome Powell issued his sharpest warning yet about Trump’s tariffs, saying they risk triggering stagflation by simultaneously driving up inflation and unemployment.

Europe navigates between U.S. tariffs and China trade outreach

Prime Minister Giorgia Meloni of Italy signs the guest book in the Roosevelt Room, April 17, 2025, before a bilateral meeting with President Donald Trump. (Source: Official White House Photo by Daniel Torok via Flickr, public domain)

– On April 18, British Prime Minister Keir Starmer spoke with President Trump to discuss trade and global issues, as the UK seeks a deal following Trump’s imposition of 10–25% tariffs on British imports, including cars, steel, and aluminum.

– The U.S. lobbied hard to counter Beijing’s pressure campaign, which offered investments and threatened retaliation ahead of the EU’s vote on tariffs against Chinese EVs.

– China’s ambassador to Spain urged the EU to strengthen ties with Beijing and resist U.S. “economic abuse,” calling for the removal of European export controls and EV tariffs while promoting China-EU cooperation as a counterweight to Trump’s unilateral trade agenda.

– Spanish Prime Minister Pedro Sanchez met with Chinese President Xi Jinping and emphasized the need for mutually beneficial relations and balanced trade and investments.

– The EU and China agreed to begin talks on setting minimum prices for Chinese-made electric vehicles as an alternative to existing EU tariffs of up to 45.3%, with negotiations backed by Germany’s auto industry and aimed at resolving trade tensions through enforceable price commitments.

China sticks to free trade amid global uncertainty

Shanghai Bund Skyline Sunrise 2016 (Source: Royalty Free via Getty Images)

– On April 18, Nvidia CEO Jensen Huang met with Shanghai’s mayor following talks with China’s vice-premier, reaffirming Nvidia’s commitment to the Chinese market amid rising U.S. export controls, and highlighting Shanghai’s importance as a key R&D hub and AI innovation center.

– Amid ongoing trade turmoil with the U.S., Chinese President Xi Jinping went on his 3-nation Southeast Asia tour from April 15 to 17 through Vietnam, Malaysia, and Cambodia.

– President Xi began his tour in Vietnam, urging regional unity against “unilateral bullying” as Trump’s tariffs disrupt global trade; Xi emphasized China’s market openness and signed major cooperation deals with Hanoi.

– During his state visit to Malaysia, Xi Jinping positioned China as a stabilizing partner for Southeast Asia amid global economic shocks and U.S. tariffs, pledging deeper trade ties, promoting a China-ASEAN free trade pact, and signing cooperation deals with Malaysia on industrial development and exports.

– Xi Jinping concluded his Southeast Asia tour in Cambodia, reaffirming China as a “reliable partner” amid U.S. tariff pressure, signing 37 cooperation deals, and pledging continued support for Cambodia’s development.

Rising tensions in Asia as regional powers flex military, political, and strategic influence

Sailors rappel out of an MH-60S Sea Hawk helicopter onto the flight deck of the USS Nimitz in the Pacific Ocean on April 13, 2025. (Source: Navy Petty Officer 2nd Class Jaron Wills via DoD, public domain)

– Chinese Foreign Minister Wang Yi urged China and Indonesia to jointly oppose unilateralism and protectionism after the first “2+2” dialogue, emphasizing cooperation on economic integration and defending Global South interests amid rising U.S.-China trade tensions.

– On April 21, China’s navy claimed it expelled a Philippine warship from waters near the disputed Scarborough Shoal, asserting the vessel had “illegally intruded” just hours before U.S.-Philippine joint military drills began.

– China unveiled footage of its J-36 sixth-generation fighter, showcasing a stealthy tri-engine design aimed at signaling rapid military advancement and strategic deterrence despite ongoing technical challenges.

– ​​On April 19, two Japanese warships made a port call at Cambodia’s China-renovated Ream Naval Base, marking the first such visit amid U.S. concerns that the facility could serve as a strategic hub for China near the contested South China Sea.

- What Are We Reading? -

- What's Happening Around Town? -

Past Events

 

- What ICAS Is Up To -

Commentary

The Nordic Reaction to America’s Arctic Posture
By Nong Hong
April 18, 2025

Recently, the Nordic countries—Denmark, Norway, Sweden, Finland, and Iceland—have faced a series of challenges stemming from U.S. policies under President Donald Trump. These include attempts to acquire Greenland, broad tariff impositions, and a perceived wavering of U.S. commitment to NATO. This commentary examines how these Nordic nations have responded to these pressures, highlighting the implications for regional dynamics and transatlantic relations.​

ICAS In the News

On Monday April 21, 2025, Senior Fellow Sourabh Gupta was quoted by China Daily on the global impact and consequences of the US tariffs.

  • “The US wants a weaker dollar, but at the same time, they want to keep the dollar as the king of the currency jungle.”
  • “China’s response has been firm, maintaining a measured approach has become difficult because the US keeps “ratcheting up” the stakes, resulting in a possible collapse in bilateral trade.”

 

On Friday April 18, 2025, Senior Fellow Sourabh Gupta was quoted by SCMP on China’s interaction with Europe and its Asian neighbors during the Trump trade war.

  • “Trump’s trade war against all and sundry, including allies and partners, is an obvious gift to China. It is a ripe plum that has dropped into China’s lap.”
  • “China’s friends, foes and some of those in between are showing a more amenable attitude in their geopolitical approaches towards Beijing.”

 

On Friday, April 18, 2025, Senior Fellow Sourabh Gupta was interviewed by CGTN America on President Xi Jinping’s recent visit to Cambodia.

  • “I think what the two sides want to do is deepen those wide frameworks – from politics and security, to economics, trade, agriculture, manufacturing and of course culture and people-to-people ties – and integration between the two parties.”

 

On Tuesday, April 15, 2025, Senior Fellow Sourabh Gupta was interviewed by CGTN on the recent visit of President Xi Jinping’s to Vietnam and bilateral negotiations..

  • “I think it is important now for regional integration, basically Europe and Asia becoming more integrated from an economic standpoint. China and Vietnam are splendid example of that integration.”