China: U.S. Forced Labor Tariffs Capped at 20 Percent | China in Focus

Welcome to China in Focus. I'm Tiffany Meyer. Our top story, new U.S. tariffs reigniting trade tensions with China. Beijing says Washington agreed to cap forced labor-related tariffs on Chinese goods at 20 percent. What the new tariffs mean for U.S.-China trade. And a lot of Chinese products are flowing into different markets, undercutting American prices and generally The race for 6G is already underway. The U.S. is teaming up with allies to shape the next wireless era and counter China's influence. China's influence operations in the U.S. are under scrutiny. Federal records show Beijing spent about $100 million in a single year to In severe flooding going on in China, a typhoon has been sweeping through parts of southern China, submerging streets and sent a freezer sliding down a flooded roadway. The U.S.-China tariff war is heating up. The Trump administration is imposing new tariffs on Chinese imports, reviving its trade agenda after the Supreme Court struck down earlier levies. China says the U.S. has also committed to capping replacement tariffs at 20 percent as trade talks continue. The new tariffs replace global duties that expired on Friday and include a 12.5 percent tariff on Chinese goods. The Trump administration says the tariffs target imports from 60 trading partners over concerns about forced labor in supply chains. China said Monday that U.S. officials agreed during recent trade talks that replacement tariffs on Chinese goods would not exceed 20 percent. Beijing says the current 12.5 percent tariff remains below that threshold, leaving room for additional increases if the U.S. chooses. The Commerce Ministry says it will keep its existing retaliatory tariffs in place and will respond to any future U.S. trade measures. Notably, Washington has not publicly commented on Beijing's claim about the 20 percent tariff cap. The U.S. trade representative says the action builds on President Trump's efforts since his first term to eliminate modern-day slavery from global supply chains. To discuss President Trump's forced labor tariffs, NTD's Kerry Dunst was joined by Alan Zhang, research assistant at the Heritage Foundation's Asian Studies Center. And first and foremost, obviously forced labor, there is an ethical component to it in which the Chinese government is accused of committing a number of possible forced labor violations including wage theft, unsanitary conditions, and generally unsafe work conditions. But even beyond that, there's also an important concern to the United States, which is that these severely undercut American businesses that are trying to compete fairly against these unfair trade practices. So in the broad scheme of things, I think the president is trying to level the playing field. Now, Alan, since the 90s and admission into the World Trade Organization, China has often been called the factory of the world, but some analysts say it failed to live up to the WTO commitments and those necessary to be entered in the first place. Can you walk us through what some of the instances of forced labor that we know about as it relates to China? Certainly. I think we saw back in 2020 and 2021, there was extensive independent reporting that came out that China was using a number of their minorities, notably the Uyghurs, as forced laborers within certain factories and paying them marginal wages. And a lot of these problems have been noticed by a variety of sources, so much so that the U.S. Congress literally passed a law banning imports from certain factories. And because of that, certain American companies like Apple have demanded stronger labor commitments from their Chinese counterparts and from a lot of these factories that are operating in China. Now, Alan, when we take a step back, how does forced or exploitative labor in other countries then affect us at home and undermine American labor? Well, because it's simply unfair. A lot of these trade practices rely on cheap labor insofar as the product that they're manufacturing costs less. They can produce at scale, at speed for far less, far cheaper than their American counterparts. And because of that, American businesses are being undermined left and right because of some of these businesses. And a lot of Chinese products are flowing into different markets, undercutting American prices and generally making it hard for American businesses to sustain their operations. Yeah. And when you look at the U.S.-China trade relationship and you look back from the Biden administration to now the Trump administration, how do you view the trajectory and what do you see as the upcoming buildup now to the second Trump-Xi summit this year that looks to be in the works for ENDC coming up relatively soon? Well, I think the White House has been quite pragmatic in its approach to China, showing that it's willing to negotiate on certain fronts in which there's viable avenues for cooperation. But at the same time, I'm sure President Trump has made very clear that there has to be guardrails in terms of the U.S.-China relationship, that insofar as China is willing to resort to unfair trade practices, that Washington is no longer going to tolerate them as it had under several presidents in the past. And so President Trump is willing to make a break with tradition and willing to take a stance for American industries. And when we look at these new tariffs that he's just put into place, there's significant pushback on them from our, you know, it's over 60 countries and those trading partners are pushing back. Do you expect that these tariffs will be challenged domestically in court or with retaliatory tariffs from those trading partners abroad? Well, I think a number of these countries that the United States has included in the recent round of investigations, a lot of what the president has proposed has come out in the reports and there is substantial evidence that underpin some of the conclusions that are being drawn. But I think in the long run, it won't cause large retaliatory efforts, insofar as some of these tariffs demand stronger workplace conditions. And so there's a possibility that these companies, in certain countries as well, be removed from the list once their trade practices do improve. All right. Well, Alan Jang, thank you so much for joining us, sharing your analysis this evening. Thank you. The Trump administration is launching a new alliance to shape the future of wireless technology. More than 20 partners, including the UK, Germany and Japan, are joining the 6G coalition aimed at coordinating secure next generation networks before it begins replacing 5G systems in the 2030s. The goal is to strengthen cooperation among trusted allies while limiting China's influence over future telecom standards. The new push builds on President Trump's directive to put the U.S. at the forefront of 6G development. Last December, Trump signed the Winning the 6G Race presidential memorandum, directing the State Department to work with allies and industries on next generation wireless technology. The new coalition aims to counter China's growing influence in telecommunications, including companies like Huawei and ZTE. The timing is significant. The World Radio Communication Conference in Shanghai next year is expected to play a major role in setting global spectrum policy, a key step toward commercial 6G deployment. Washington wants a united front to secure an advantage heading into those talks. The effort also aims to avoid a repeat of the 5G rollout when the U.S. urged allies to limit the use of Huawei and ZTE equipment over national security concerns. At the time, Washington spent billions of dollars helping rural telecom providers remove Chinese-made equipment from American networks. Ariel Roth, head of the National Telecommunications and Information Administration, says that teaming up with trusted partners right now ensures next generation networks will protect shared security interests, drive innovation and boost American competitiveness. Scrutiny over Chinese influence in the U.S., President Trump's recent address about Chinese interference in U.S. elections, have renewed attention on Beijing's broader influence efforts inside America. Justice Department filings show Chinese regime entities spent nearly $100 million on foreign influence related activities in 2025 alone. These filings provide a look at some of the ways China seeks to shape U.S. policy, public opinion and business decisions, but they do not show the full scope of Beijing's influence efforts, including activities that may not require disclosure. According to federal records, Chinese entities reported nearly $100 million in spending on influence related activities in 2025 alone. The State Department says Beijing spends billions of dollars globally on foreign information efforts. Chinese state-run media outlets, including CCTV, Xinhua and China Daily, are also registered as foreign agents in the U.S. These networks generally promote pro-Beijing messaging in America. Meanwhile, Chinese companies have hired American lobbyists to challenge U.S. restrictions, including sanctions and investment limits. They're also working to influence policy decisions in Washington. Critics argue some Chinese entities are lobbying rules to avoid more detailed disclosures required under foreign agent laws. Heavy rain and flooding are battering parts of China's south after typhoon made a landfall in Guangdong province. Authorities say more than 800,000 people have been relocated, with heavy to torrential rain expected to continue through Tuesday. Eyewitness video from Sunday shows floodwaters inundating streets in Guangdong. Nol was the third typhoon to hit China and make landfall within a month. Separately, residents in northeastern China's Jilin province say earlier flooding left them relying on neighbors after roads were blocked and food became scarce. One farmer says floodwaters overwhelmed her hog farm, leaving more than 800 pigs dead or missing. The farmer says government departments ignored her requests for help and repeatedly demanded she delete videos she posted appealing for assistance. Local authorities in China often see residents' public appeals for help as a sign they're failing to respond effectively to the flooding that could hurt their chances for promotion. As a result, they often go to great lengths to silence those appeals. Coming up, a new trade clash between China and Europe. China is restricting exports to over a dozen European firms after the EU imposed sanctions on Chinese companies aiding Russia's war effort. And Ford and Chinese automaker Geely setting up a joint venture in Europe. What are the national security concerns surrounding Chinese cars? If you get in the vehicle and you start the vehicle, it automatically syncs your phone. So it takes a Bluetooth connection immediately. You don't get to opt in like you would in any car. More on that after the break here on China In Focus. Welcome back to China In Focus. Tiffany Meyer, trade tensions deepen between China and Europe. China is retaliating after the European Union expanded sanctions over Russia's war in Ukraine. It is now restricting exports to 14 European defense and technology companies. China says the companies will no longer be allowed to receive dual-use goods from Chinese exporters, products that can be used for both civilian and military purposes. The move on Friday comes after the EU unveiled its latest Ukraine-related sanctions package. It targets 14 Chinese and Hong Kong companies accused of helping Russia obtain restricted technology for its war effort. Among the European firms affected is German defense manufacturer Rheinmetall, one of Europe's fastest-growing defense companies. The export controls mark Beijing's strongest response yet to the EU sanctions on Russia. Ford and Chinese automaker Geely have announced a joint venture at Ford's existing factory in Spain. Ford will own two-thirds of the new operation, while Geely will own the remaining one-third. The news came on Friday, a day after the Senate Commerce Committee approved a bipartisan bill that would limit such a partnership in the United States. To discuss the national security concerns Chinese cars are bringing to the West and more, NTD's Chris Spears spoke with automotive expert from CarCoach Reports, Lauren Fix. This partnership with Geely will further enable China's decimation of auto markets in Europe as Chinese automakers set their sights on North America. What is your reaction to Ford's announcement, Lauren? Well, I'm not surprised and I am surprised at the same time. CEO Jim Farley has been totally enamored with the Chinese product. He's been test-driving them around for well over a year, different vehicles. And this partnership puts them in an interesting situation because you cannot bring those products here to the US. There's already an agreement in place with Senator Bernie Moreno and Elisa Slotkin, who is a Democrat from Michigan. And the two of them have agreed that there is a bill that is already going to be passed. It's already passed the House. It's in the committee. It's going to go over to the Senate and then be signed by the president that will not allow Chinese cars to come to the US. And they're making it permanent. And the reason they're making it permanent is because what is going on in Germany is what all this is about. And if you connect all the dots, what you find out is that when you allow Chinese car manufacturers to come into your country, such as what happened in Germany, it has destroyed the German car market. And what that means is Volkswagen, which includes their brands of Audi and Porsche and other brands that we don't get here, but also Mercedes-Benz and BMW and other brands, it's hurt them because their number one employment for their country is automotive. So if you're hurting your own country and allowing Chinese cars to come in because of a lower cost, what they don't realize what's happening is, and I guess a lot of people don't realize this on a global basis, is China basically supplements the cost. So if you're looking at a car that is $60,000, it's now available as a Chinese car that looks similar, looks good technology and so forth at $40,000, you think you're buying the same car for less money. But the difference is that money that's being lost is going to the car brands from the Chinese government. And they're doing this in order to destroy the auto industry on a global basis. They want to be the leader, just like they've done with televisions, appliances and literally everything else. So this is a huge problem. President Trump has been in front of this and he has said we don't want their technology here because it spies, it collects all the data and sends it back to China. And that's what we don't want here. But if they're using that technology in other countries, that is impacting Ford and their bottom dollar. So this is going to be interesting because the president's definitely going to get involved. And you touched briefly on the national security concerns surrounding all this. Here's a clip of Senator Bernie Moreno spelling out the impetus for this sort of bill. Joint ventures are called out because, again, for the same exact reason. If you have a joint venture between, for example, BYD and Ford, I'm just picking that out of there, you would have a situation where you have an unbalanced deal because Ford has to live by U.S. law and order, meaning private companies have to behave a certain way and they don't behave a certain way. There's an entire, very robust legal system to deal with that. And the Chinese model is very different. The Chinese government has the ability to dictate to BYD what to do. So from a national security perspective, Lauren, and with your unique angle as an automotive expert, what happens without laws like this? Well, without laws like this, the Chinese cars could eventually come to the U.S. and what would end up happening is it would destroy Ford, General Motors, Stellantis, which includes Chrysler and Dodge and Jeep, but also the impact of all the car manufacturers who are building here in the U.S. If they had their choice, China would import all these Chinese cars. I'm not saying they're better. They certainly look great on the surface, but we know they don't hold up well over time. You would have problems with service and insurance and all kinds of other security issues if they allow all these Chinese cars to come here. This is why we have these protections in place. And because President Trump put them in place, Senator Bernie Marino and Senator Slotkin, they're trying to make it permanent. So next administrations down the road don't allow China to bring their vehicles here. And it's kind of interesting because in Canada, they're going to let 49,000 Chinese cars come into their country. That's going to be a problem because they can actually not allow them to drive across the border into the U.S. That's going to be a problem. Right now in Mexico, you can drive your car across the border. I've driven all these cars. They've driven them to I'm part of the World Car of the Year jury and we test drive literally everything. They have brought Chinese cars across the border with Mexican plates on them. We test drive them and they go back. So I'm wondering how they're going to be able to handle this because these Chinese cars do collect all the data. And I will tell you how they collect them is very interesting. If you get in the vehicle and you start the vehicle, it automatically syncs your phone. So it takes a Bluetooth connection immediately. You don't get to opt in like you would in any car. Oh, pair the phone. We've paired it for you. Translation. We're taking all the data off your phone. And that could be everything from passwords to anything you don't want people to know. So this is a huge problem, which is why you're watching this bipartisan bill go through. And I think it's going to get signed and move pretty quickly now. It's horrifying when you when you talk about it like that. Do you think this bill goes far enough? Is there anything else you'd like to see done to protect Americans from Chinese surveillance technology in their cars? Well, we're going to see a lot. I think we almost need is like a VPN for your car, because why you this is so very interesting because what you've heard us talk and you and I've discussed in the past about all these cameras and the surveillance and everything that information is going to data centers. That's our data. So China wants that data, too. They just don't want to pay for it. So that's why they're trying to get their Chinese cars here. So we really need protections for consumers. There is a couple of bills that are on the House floor right now. I'm monitoring them. And of course, I'll be reporting on that in my car coach reports channel. But you really need to be aware that all this data on you as an individual and you may think, well, I don't do anything wrong. Well, that information can be used and they can use it to sell it, control you, help you make decisions, even ones you don't want their assistance with. And that's what China's trying to do. And that's why I'm really against all this data collection from cameras, from Chinese cars. And I'm hoping this bill goes through quicker than it has been. Of course, everything seems to take longer these days, going through politics and everything. But let's keep our eyes on this because this is protecting you and everybody that's watching and everyone you know. The last thing you want is all your information being made and sold by other people. It really is deeply concerning with the totalitarian regime finding all kinds of new ways to get its surveillance technology into our lives right here in the United States. Lauren Fix, automotive expert at Car Coach Reports. Thank you so much for joining us. Thank you. France and Germany are pushing for a new plan to revive Europe's struggling auto industry. The two countries want the European Union to adopt a made in Europe strategy. The goal is to strengthen European car makers and help them compete in the global market. That's all for today's China In Focus. I'm Tiffany Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at ChinaInFocus at NTD.com. We'd love to hear from you. For on the clock original news coverage, visit us at NTD.com or download our NTD app. Thanks for watching. See you tomorrow.