
Top Chinese official says war with U.S. unimaginable in tone tweak
Both the Chinese and the Americans are hoping for a "friendly, good' relationship between their countries, and politicians are expected to heed the will of the people, Liu Jianchao, head of the Communist Party's International Department, said at the government-backed World Peace Forum on Thursday.
Speaking in Beijing, Liu called a war between China and the U.S. "unimaginable' but highlighted Taiwan and the South China Sea as possible flashpoints. He urged America to respect the One China principle, which dictates that Taiwan is part of China's territory.
Liu urged America to respect China's sovereignty and honor its commitments on Taiwan. "We will decide at what time to take what kind of measures to achieve China's reunification based on the development of the situation, our needs, and movements of Taiwan's separatist forces,' he said.
China is adopting a less confrontational tone with the U.S. days after confirming details of a trade framework with Washington, as the world's two largest economies finalized an understanding reached in Geneva.
But while the trade truce may be holding for now, Beijing is increasingly wary about U.S. efforts to forge deals that could isolate Chinese firms from global supply chains.
"China is keenly aware of what it's gained from China-U.S. cooperation,' Liu said. "Our cooperation is mutually beneficial. The act of putting up barriers will hurt the other and ourselves as well.'
The Chinese official also struck a critical note, recalling U.S. Defense Secretary Pete Hegseth's message of "peace through strength' — delivered a month ago during the Shangri-La Dialogue in Singapore — and calling it "a rebranding of hegemonism.'
"Such rhetoric is about flexing muscles instead of encouraging dialogue,' Liu said. "It will only stir up confrontation and conflicts instead of promoting peace and harmony.'
The diplomat additionally addressed some of the territorial disputes China has with its neighbors, sketching out an approach to solving its border issues with India and Bhutan that he said will rely on dialogue.
"China is not leveraging its size and national strength to oppress others,' Liu said. "Instead, we're trying to find solutions to control and address the South China Sea issue through negotiations.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Nikkei Asia
4 hours ago
- Nikkei Asia
China spares major cognac makers from EU brandy dumping duties
SHANGHAI (Reuters) -- China spared major cognac producers Pernod Ricard, LVMH and Remy Cointreau from hefty duties on EU brandy on Friday, a rare bright spot at a time of trade tensions between Brussels and Beijing as the two sides row over tariffs on Chinese-made EVs. China will from Saturday levy duties of up to 34.9% for five years on brandy originating in the European Union, most of it cognac from France, the Chinese Commerce Ministry said in a final ruling. But most of France's cognac industry including big brands LVMH-owned Hennessy and Remy Martin will be exempt from the duties provided they sell at a minimum price, the ministry said in a statement. It did not disclose the minimum prices. Beijing launched its anti-dumping probe on EU brandy in January last year, in what was widely viewed as retaliation for the EU's decision to impose big import tariffs on China-made EVs. French cognac makers generate global exports of $3 billion a year combined. With premium aged bottles of the liquor selling for hundreds of dollars, they have complained they are collateral damage in the broader trade row between Brussels and Beijing. In addition to the reprieve, China's commerce ministry will also give back deposits made by brandymakers since October 2024, when provisional duties were imposed. The refund issue, which weighed particularly heavily on smaller producers, was one of the sticking points in months-long negotiations, two industry sources said. China is the world's biggest market for cognac in value terms. Remy Martin-owner Remy Cointreau said in a statement that the deal on minimum price commitments constituted "a substantially less punitive alternative" thus enabling "the strengthening of some investments in China." Pernod Ricard said it regrets the increase in the cost of operating in China but additional costs are significantly less than would be the case if tariffs had been made permanent. LVMH and Campari did not immediately respond to requests for comment. There was little sign that the rift between China and the EU was easing. Olof Gill, the European Commission's spokesperson for trade, said the tariffs were unfair and unjustified. China's foreign minister Wang Yi is visiting Europe this week seeking to lay the groundwork for a summit between EU and Chinese leaders later this month, with the EV dispute and China's curbs on the export of rare earths high on the agenda. Wang was due to meet his French counterpart in Paris later on Friday. Asked about media reports that China was poised to shorten the summit to a single day instead of two, a European Commission spokesperson said the program was still being finalized. "Nothing has been cancelled because nothing has been announced and no final program has been agreed yet," the spokesperson added. Last week ,Reuters reported that French cognac makers had reached a tentative deal on minimum import prices for the Chinese market, but that China would only finalize the deal if progress was made regarding EU tariffs on Chinese-made EVs. Shares of French spirits makers were mixed as investors digested the ruling, with many relieved Beijing had agreed to drop tariffs in return for price commitments, likely reviving sales which have suffered due to the tariffs. Remy Cointreau shares were up 0.54% and Pernod was down 0.3%, having regained some ground lost earlier in the day. LVMH was down 1.5%. Monthly cognac exports to China have fallen by as much as 70% due to the trade dispute, according to data from the Bureau National Interprofessionnel du Cognac (BNIC), a French cognac industry group. Citi analysts said they expected upgrades to earnings forecasts for Pernod and Remy. Remy, which makes 70% of its sales from cognac, mostly in the U.S. and China, said it would update its annual guidance when it releases quarterly numbers on July 25. European spirits makers have also been grappling with a downturn in sales in the United States where inflation has deterred drinkers from pricier spirits. President Donald Trump has also threatened tariffs on imports from the EU. The minimum price pledges could translate into some price increases, but they will likely be small and it is too early to tell whether there could be an impact on shelf prices, a senior industry source with knowledge of the China negotiations said. "The French government has been raising this repeatedly with the Chinese government and saying this is a major bone of contention," said a senior French industry source with knowledge of the China negotiations, who declined to be named because of the sensitivity of the matter. "I think both sides, France and China, did not want this to get out of hand, they wanted to find a resolution." BNIC said that the deal for minimum price commitments will be "less unfavorable" than anti-dumping duties, but still worse for its members than the historical pre-investigation norm. "This is why we renew our call to the French government and the European Commission to reach a political agreement with the Chinese authorities as soon as possible to return to a situation without anti-dumping duties," BNIC said in a statement.


NHK
8 hours ago
- NHK
Economist tips yen to gain to 130-level against dollar
Currency analyst Yamamoto Masafumi predicts slowing US growth will push the yen to the 130 level against the dollar.


Japan Times
8 hours ago
- Japan Times
Japan eyes 'golden share' as condition for aid to Rapidus
The industry ministry on Friday announced a plan for the government to hold a veto-wielding "golden share" in exchange for financial aid to companies such as Rapidus, which aims to realize domestic production of next-generation semiconductors. Golden shares in the companies will be held by the Information-Technology Promotion Agency, an independent administrative agency under the industry ministry. Parameters of the golden shares will be drawn up by companies and then screened by the ministry. Companies capable of producing semiconductors with a circuit line width of up to 2 nanometers in the country by the late 2020s will be eligible for government aid. In addition to granting the government a golden share and some voting rights, companies that receive government aid will also be required to raise funds from the private sector as much as possible. The government has already decided to provide more than ¥1.7 trillion to Rapidus. It plans to sell Rapidus shares received in exchange for the aid at an appropriate time, based on the company's stock price and management situation. It will also provide debt guarantees, which will be only partial to prevent the company from becoming too dependent on government support. The ministry will begin accepting applications for some ¥100 billion in aid around this summer or autumn.