PRC seeks EU cooperation while hitting back at U.S. tariffs

Panama formally exits Belt and Road Initiative

Welcome back to What’s Happening in China, your weekly update on the latest news and developments from the country.

The gloves are coming off.

After Chinese officials had their Lunar New Year break interrupted by Trump’s announcement last weekend of “a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country,” Beijing hit back with what experts described as a measured response. On Tuesday, it announced tariffs, including a 15% levy on coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks, effective Monday, February 10—on top of other measures.

Following the PRC’s retaliation, a scheduled call between Trump and Xi on Tuesday was abruptly canceled. “I’m in no rush,” Trump said. “We’re going to do very well against China and against everybody else.”

Meanwhile, Mexico and Canada secured a 30-day pause on Trump’s tariffs after promising to address his concern…