Zhong Sheng Commentary: 'Tariff Boomerang' Will Hurt America
Also in this edition, Xi's Cambodia Visit - State Council Discusses Expectation Management & Nvidia CEO's Beijing Tour
Here are the key reports and articles that I found noteworthy from the People's Daily’s edition on Friday, April 18, 2025.
Page 1: The front page today covered Xi Jinping’s visit to Cambodia. Upon landing, Xi said that (English report):
“China-Cambodia relations have withstood the test of global transformations, and always remained rock-solid. The two countries have taken the lead in building a bilateral community with a shared future, as well as Belt and Road cooperation. China and Cambodia have supported each other in maintaining stability and promoting development and prosperity, and worked together in upholding international fairness and justice, setting an example for a new type of international relations while contributing to building a community with a shared future for mankind, he said. Xi said China takes Cambodia as a priority in neighborhood diplomacy, and firmly supports Cambodia upholding strategic independence and following a development path suited to its national conditions.”
Next, Xi met with Cambodian King Norodom Sihamoni, who awarded Xi the National Order of Independence - Grand Collar. Xinhua reports:
Xi said that Cambodia's nation-building is thriving, and he firmly believes that, under the blessings of King Sihamoni, the hardworking and intelligent Cambodian people will surely build an even more prosperous and stronger nation. Xi pointed out that China and Cambodia share a millennia-old friendship, with their people having always striven together and thrived together. Regardless of changes in the international landscape, China and Cambodia have stood by each other in good faith and with mutual assistance, offering unwavering support on issues concerning each other’s core interests and major concerns. China and Cambodia have always been at the forefront of building a community with a shared future for mankind, bringing tangible benefits to the Cambodian people.”
He talked about the need to “cherish and carry forward the ironclad friendship jointly forged by the elder generation of Chinese leaders and King Father Norodom Sihanouk”. Among other things, King Sihamoni reportedly said that Cambodia “firmly adheres to the one-China principle, highly appreciates the three major global initiatives proposed by Xi, and appreciates the huge development opportunities brought to Cambodia via the Belt and Road cooperation.”
Next, there’s a report on Xi’s meeting with Cambodian People’s Party President and Senate President Samdech Techo Hun Sen. Xinhua reports that Xi talked about the importance of the “ironclad” friendship and the need to support each other. He added that “China supports Cambodia in playing a more important role in the regional and international arena” and talked about the importance of the new ‘2+2’ strategic dialogue mechanism to strengthen strategic coordination.
Xi also called to “deepen practical cooperation across various fields, advance the construction of Cambodia's Industrial and Technological Corridor and Fish and Rice Corridor, and strengthen collaboration in energy, transportation and other key sectors, enabling Cambodia to share more in China’s development opportunities.” He also sought cooperation in domains like party building and legislative cooperation.
This bit then is noteworthy:
“Unilateralism and hegemonism receive no support of the people, Xi said. History has shown the unstoppable trend toward a multipolar world, economic globalization, and cultural diversity, Xi said, adding that no country wants to return to isolation. The trade wars undermine the multilateral trading system and disrupt global economic order, Xi said, urging all countries to unite and firmly keep the reins of national security and development in their own hands, uphold mutual respect, pursue win-win cooperation and common development, and work together to build a community with a shared future for mankind. As Asia embarks on a new journey of collective revitalization, Xi noted, China will continue to follow the principle of amity, sincerity, mutual benefit and inclusiveness and the policy of developing friendship and partnership with neighboring countries, maintain the continuity and stability of its neighborhood diplomacy, deepen friendly cooperation with neighboring countries, so as to share the fruits of Chinese modernization more widely across the region, promote the building of a community with a shared future with neighboring countries, and work together to advance Asia’s modernization.”
Hun Sen reportedly backed China on the issues of Taiwan, Xinjiang and Tibet. He also agreed to deepen strategic and security coordination. Xinhua also quotes him as saying that “trade wars and tariff wars have undermined the legitimate interests of all countries and triggered turmoil in the international situation, Hun Sen said, adding that Cambodia is willing to strengthen cooperation with China and jointly address various risks and challenges.”
Finally, there’s a report on Xi’s meeting with Prime Minister Hun Manet. The Chinese readout says that the two leaders agreed on jointly building an all-weather China-Cambodia community with a shared future in the new era, and announced designating 2025 as the China-Cambodia Tourism Year.
Xi said that: As transformation unseen in a century accelerates around the world, further advancing the China-Cambodia community with a shared future is fully in line with the fundamental interests of the two peoples. China will, as always, support Cambodia in advancing along a development path suited to its national conditions, support the Cambodian government in achieving successes in governance, and support Cambodia in playing a more important role in regional and international affairs. Building the all-weather China-Cambodia community with a shared future in the new era marks a new starting point in the bilateral relationship.
“The two sides should ride the momentum, further implement the updated action plan on building the China-Cambodia community with a shared future, strengthen solidarity and cooperation, and accelerate the implementation of the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative. They should bring their mutual political trust to a higher level, expand their mutually beneficial cooperation of higher quality, ensure greater security, have more frequent people-to-people exchanges, and strengthen strategic coordination of higher standards, so as to deliver greater benefits to the peoples of both countries.”
He underscored the “importance to make good use of the China-Cambodia Intergovernmental Coordination Committee, advance the “2+2” strategic dialogue between the foreign and defense ministers of the two countries, and step up exchanges through party-to-party, legislative and other channels, so as to jointly respond to risks and challenges and safeguard shared interests.”
Xi said that “China will keep the mega-size China market open to Cambodia, and import more premium agricultural products from the country.” He also promised more government scholarships to Cambodia and deeper people-to-people ties. On security issues, Xi said that “the two sides should take stronger and more effective measures to resolutely crack down on online gambling and telecom fraud, and safeguard public security and normal interactions among regional countries.”
Finally, he called on the two sides to “oppose all acts of unilateralism and bullying, and practice true multilateralism. The two sides must firmly resist bloc rivalry and camp-based confrontation, strengthen coordination and cooperation within frameworks such as ASEAN and Lancang-Mekong Cooperation, jointly safeguard the hard-won peace and development in the region, and contribute to a community with a shared future for mankind.”
Here is what Hun Manet reportedly said:
“Cambodia is firmly committed to the one-China policy, and supports China in safeguarding its sovereignty and territorial integrity. Cambodia remains steadfast in growing friendship with China. It is ready to maintain high-level exchanges, strengthen strategic and security cooperation, and deepen the ironclad friendship with China. China is Cambodia’s largest trading partner and source of foreign investment. Cambodia is ready to strengthen cooperation with China in trade, investment, industrial and supply chains, agriculture, and infrastructure development, jointly combat online gambling and telecom fraud, intensify people-to-people exchanges including in education and culture, and ensure the success of the Cambodia-China Tourism Year. Cambodia highly appreciates China’s constructive role in international and regional affairs, and supports the vision of a community with a shared future for mankind, the three major global initiatives, and the Belt and Road Initiative put forth by President Xi. As unilateralism destabilizes the world, and the multilateral trading system is under pressure, China has demonstrated leadership and provided valuable stability for the world. Cambodia will strengthen coordination and cooperation with China to safeguard the common interests of both sides.”
The two sides also issued: Joint Statement Between the People’s Republic of China and the Kingdom of Cambodia on Building an All-Weather China-Cambodia Community with a Shared Future in the New Era and Implementing the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative. So far, I have not been able to locate the document.
Page 2: There’s a report on He Lifeng meeting with Nvidia CEO Jensen Huang in Beijing. As per the report, He said that:
“the investment and consumption potential of the Chinese market is enormous, and with the rapid advancement of industrial transformation and upgrading, it is the best application scenario for a new round of technological revolution and industrial transformation, and has always been a fertile soil for foreign enterprises’ investment and trade. He welcomed more American-funded enterprises, including NVIDIA, to deeply cultivate the Chinese market, fully display their industrial advantages and capabilities in China, and thereby secure a leading edge in global competition.” 何立峰表示，中国市场投资和消费潜力巨大，产业转型升级加快推进，是新一轮科技革命和产业变革的最佳应用场景，始终是外资企业投资和贸易的沃土。欢迎包括英伟达公司在内的更多美资企业深耕中国市场，在中国尽展产业优势和能力，进而在全球竞争中赢得先机.
Huang also met with Ren Hongbin, chairman of the China Council for the Promotion of International Trade. Global Times reports:
“During the meeting, Huang said the company will serve the Chinese market unswervingly, and highlighted China’s strengths in the consumer market, booming industrial ecology, and software prowess, according to a report by CCTV News on Thursday. Huang made the remarks when he was received by, in response to Ren’s question regarding the US’ recently announced indefinite export control on Nvidia’s H20 chips to China. The US government’s strengthening of chip export controls has already had a significant impact on Nvidia’s business, Huang said. As a company that has been deeply cultivating the Chinese market for 30 years, Nvidia has grown together with the Chinese market and achieved mutual success. China is not only one of the world’s largest consumer markets, its booming industrial ecology and leading software strength have also become important driving forces for the company to continue innovating, Huang said. The company’s success in the Chinese market has driven the company to continuously increase investment in research and development. Moreover, in-depth cooperation with Chinese companies has enabled it to evolve into an even more competitive international enterprise. Therefore, the company will continue to spare no effort in optimizing the product system to meet regulatory requirements and serve the Chinese market unswervingly, Huang said, according to the report. ‘The China market is very important to us, and it's important to our growth,’ Huang told reporters, according to a video posted by China News Service.”
NYT’s report on this adds:
“On Monday, Nvidia promised to invest $500 billion in artificial intelligence infrastructure in the United States, winning praise from President Trump’s administration, which called the investment “the Trump Effect in action.” The next day, the company disclosed that U.S. officials said it would need a license for any sales to China. The new requirement would force Nvidia to take a $5.5 billion hit on inventory it had already planned to sell in China. On Wednesday, the House Select Committee on the Chinese Communist Party, which focuses on national security threats from China, said it was investigating Nvidia’s sales of chips across Asia. The committee is trying to determine if the chip maker knowingly violated U.S. rules on chip sales to Chinese companies, especially to the A.I. startup DeepSeek.”
Another brief report (English report) on the page informs that Chinese Defense Minister Admiral Dong Jun and Vietnamese Defense Minister General Phan Van Giang jointly presided over the 9th China-Vietnam Border Defense Friendship Exchange and held talks.
Page 3: There’s a report on the State Council’s 13th study session on the theme “strengthening expectation management, advancing policy implementation and expectation guidance in a coordinated manner.” Gao Peiyong from the Chinese Academy of Social Sciences was the external guest who spoke at the session. Vice Premiers He Lifeng and Zhang Guoqing, and State Councilor Wu Zhenglong also spoke.
After them, Li called to “focus on expectation management and guidance, constantly improve the effectiveness of macro-control, and realise mutual promotion and positive cycle among stabilising expectations, strengthening confidence, and stabilising the economy.” 在宏观经济治理中，不仅要注重供需平衡调控，还要注重预期管理与引导，不断提高宏观调控效能，实现稳预期、强信心与稳经济的相互促进、良性循环.
“Li Qiang pointed out that doing a good job in expectation management requires a comprehensive approach. In all aspects of policy formulation, implementation, and government work, there should be awareness of stabilising expectations, especially in connection with changing situations, to improve policy targeting and effectiveness. It is necessary to identify policy priorities, be good at grasping issues that serve as wind vanes, prescribe the right remedies, concentrate policies, and promptly introduce powerful and effective policy measures. The timing of policies should be considered; during some key time windows, various policy measures should be implemented early and quickly to positively influence expectations. Policy intensity should be grasped; when necessary, conventional approaches should be broken, and ‘combination punches’ delivered to give the market a genuine sense of gain. Policy publicity and interpretation should be strengthened, with proactive and precise delivery of policies, enhanced interaction and communication with the market, so that the market fully understands and utilises policies, truly benefiting the people and enterprises.” 李强指出，做好预期管理综合性强，在政策制定实施和政府工作的方方面面，都要有稳预期的意识，特别要结合形势变化，提高政策针对性、有效性。要找准政策重点，善于抓住有风向标作用的问题，对症下药、集中施策，及时推出有力有效的政策举措。要讲究政策时机，在一些关键的时间窗口，推动各方面政策措施早出手、快出手，对预期形成积极影响。要把握政策力度，必要时敢于打破常规，打好“组合拳”，让市场真正有获得感。要加强政策宣传解读，做好政策的主动精准送达，加强与市场的互动交流，让市场充分了解和用好政策，使政策真正惠及群众和企业.
“Li emphasised that major strategies, reforms, and the development environment all play important roles in stabilising expectations. It is necessary to accelerate the implementation of major strategic and reform measures—say one thing, do one thing, and accomplish one thing—to guide the formation of clear and stable market expectations, achieving positive interaction between deepening reforms and strengthening expectations. It is necessary to create an inclusive atmosphere and a fair, stable, and predictable development environment, take the initiative to help the masses and enterprises solve difficulties, further improve and perfect administrative law enforcement, standardise the exercise of power, and effectively protect the legitimate rights and interests of various business entities. It is necessary to profoundly grasp the objective laws of expectation management, continuously improve macroeconomic governance, effectively boost market confidence, and better promote economic and social development.” 李强强调，重大战略和改革、发展环境对稳预期都有着重要作用。要加快重大战略和改革举措落实落地，说一件、干一件、成一件，引导形成明确稳定的市场预期，实现改革深化和预期强化的正向互动。要营造包容的氛围和公平、稳定、可预期的发展环境，主动帮助群众和企业解决困难，进一步改进和完善行政执法、规范权力运行，有力保护各类经营主体合法权益。要深刻把握预期管理的客观规律，不断改进宏观经济治理，有效提振市场信心，更好促进经济社会发展.
Next, there’s a report on Li Xi’s visit to Hunan from April 14 to 17.
The report says that Li called on discipline inspection and supervision organs to keep a close watch on unhealthy tendencies and corruption issues that occur around the masses, especially focusing on specific and prominent problems for in-depth rectification, so that the masses can personally feel the changes in the party style, political style and grassroots political ecology.
“At the National Key Laboratory of Central South University, China Railway Construction Heavy Industry Co., Ltd., and Hunan Petrochemical Company, Li called for focus on ‘matters of great national importance’ to strengthen political supervision, enhance party style, clean governance, and anti-corruption work in state-owned enterprises, and help develop new quality productive forces. At the Chenglingji Hydrological Station and Hualong Wharf, Li demanded in-depth implementation of Xi Jinping's ecological civilisation thought and focussing discipline inspection and supervision work on the ecological protection of the Yangtze River Basin. Li also visited a police station, emphasising the need to adhere to and develop the ‘Fengqiao Experience’ in the new era, resolve conflicts and disputes in their embryonic state, enhance grassroots governance effectiveness, and maintain social security and stability.” 在中南大学国家重点实验室、中国铁建重工集团股份有限公司、湖南石化公司，李希要求聚焦“国之大者”强化政治监督，加强国企党风廉政建设和反腐败工作，助力发展新质生产力。在城陵矶水文站、华龙码头，李希要求深入贯彻落实习近平生态文明思想，为长江流域生态保护贡献纪检监察力量。李希还到韶山冲派出所，强调要坚持和发展新时代“枫桥经验”，把矛盾纠纷化解在萌芽状态，提升基层治理效能，维护社会安全稳定.
At a symposium later, he talked about the importance of maintaining a strict stance on corruption, of self-revolution and of the education campaign to implement the eight-point central regulations. The report ends with this:
“Li Xi also paid tribute to Comrade Mao Zedong’s bronze statue, former residence, and memorial hall, studying and commemorating the great achievements of revolutionary predecessors. He required disciplinary inspection and supervision cadres to not forget their original aspiration, keep their mission firmly in mind, inherit and carry forward the lofty spiritual demeanour of the older generation of revolutionaries, and escort Chinese-style modernisation.” 李希还瞻仰了毛泽东同志铜像、故居和纪念馆，学习缅怀革命先辈的丰功伟绩，要求纪检监察干部不忘初心、牢记使命，传承弘扬老一辈革命家的崇高精神风范，为中国式现代化保驾护航.
Page 4: There’s a report informing that the fifth round of inspections of the 20th Central Committee has completed its deployment. So inspection teams are now set to begin their work, which will go on for around two and a half months.
The report says that the central inspection teams will “adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guidance, thoroughly study and implement the spirit of the 20th Party Congress and the Second and Third Plenums of the 20th Central Committee, conscientiously implement the deployment of the Fourth Plenary Session of the 20th Central Commission for Discipline Inspection, distinctly uphold the ‘Two Safeguards’ as the fundamental task, adhere to focusing on the center and serving the overall situation, adhere to problem orientation and strict tone, adhere to systemic concepts and exert comprehensive supervisory effects, adhere to seeking truth from facts and following regulations, discipline, and law, carry out political supervision precisely and effectively, and provide strong guarantee for advancing Chinese-style modernisation.” 各中央巡视组组长指出，巡视是全面从严治党的战略性制度安排。中央巡视组将坚持以习近平新时代中国特色社会主义思想为指导，深入学习贯彻党的二十大和二十届二中、三中全会精神，认真落实二十届中央纪委四次全会部署，旗帜鲜明把“两个维护”作为根本任务，坚持围绕中心、服务大局，坚持问题导向、严的基调，坚持系统观念、发挥综合监督作用，坚持实事求是、依规依纪依法，精准有效开展政治监督，为推进中国式现代化提供有力保障.
“The heads of each central inspection team demanded accurately grasping the focus of political inspection and supervision, centering on the Party Central Committee’s functional positioning and strategic deployment for inspected regions, thoroughly understanding the implementation of General Secretary Xi Jinping and the Party Central Committee’s decision-making arrangements, implementing the deployment for further comprehensively deepening reform, coordinating development and security, deepening the comprehensive strict governance of the Party, strengthening the construction of leadership teams, cadre and talent teams, and grassroots Party organisations, as well as inspection rectification situations, focusing closely on power and responsibility, focusing closely on ‘top leaders’ and leadership teams, focusing closely on problems strongly reflected by the masses, striving to identify political deviations, and promoting the resolution of prominent problems. It is necessary to adhere to seeking progress while maintaining stability, focus on answering common questions, strictly observe discipline and style, and resolutely complete the inspection tasks.” 各中央巡视组组长要求，要准确把握政治巡视监督重点，围绕党中央关于被巡视地区的功能定位和战略部署，深入了解贯彻落实习近平总书记和党中央决策部署，落实进一步全面深化改革部署，统筹发展和安全，纵深推进全面从严治党，加强领导班子、干部人才队伍和基层党组织建设以及巡视整改情况，紧盯权力和责任，紧盯“一把手”和领导班子，紧盯群众反映强烈的问题，着力查找政治偏差，推动解决突出问题。要坚持稳中求进，注重同题共答，严明纪律作风，坚决完成好巡视任务.
Page 10: There’s a Zhong Sheng commentary today basically arguing that American policies around tariffs and economic globalisation are self-defeating. It says:
The reason why the US government can borrow money from the international market at a lower interest rate is that the US dollar is a safe-haven currency supported by the credit of the US government. But recently, the US side’s reckless imposition of tariffs has already triggered panic in the American stock, bond, and foreign exchange markets. This behaviour of overdrawing credit is eroding the confidence of global investors in US dollar assets. Of the current $36 trillion in US debt, $9.2 trillion will mature this year. If the US insists on escalating the trade war, the cost of borrowing new debt to repay old debt will further increase, eventually triggering a credit crisis for the US dollar. 美国政府之所以能以较低利息从国际市场举债，在于美国政府信用支撑的美元避险货币地位。但近期美方肆意加征关税已引发美国股市、债市、汇市恐慌。这种透支信用的行为，正在侵蚀全球投资者对美元资产的信心。美国当前36万亿美元债务中，今年到期的就有9.2万亿美元。如果美方一意孤行升级贸易战，美国借新债还旧债的成本将进一步攀升，最终引发美元信用危机.
“The US fantasises about achieving the return of manufacturing through tariff barriers, but instrumentalising and weaponising tariffs will only undermine the stability and smoothness of the global industrial and value chains. The global industrial division of labor is the key to American companies maintaining their competitiveness. Global industrial division of labor is the key for American enterprises to maintain competitiveness. It is precisely because of global division of labor that American companies can enjoy policy preferences and cost advantages from various countries, and then use the rich profits to feed back into domestic R&D and innovation in the US; this virtuous cycle has created the US’ leading position in science and technology. Now, as the US imposes tariffs on the vast majority of countries and regions around the world, American companies themselves are also suffering. Because tariffs are transmitted step by step through industrial and supply chains, they aggravate the risks of supply chain disruptions and industrial hollowing out, increase the difficulty of developing manufacturing, thereby weakening the American industrial base and reducing the competitiveness of American enterprises. 美方幻想通过关税壁垒实现制造业回流，但将关税工具化、武器化，只会破坏全球产业链价值链稳定畅通。全球产业分工是美国企业保持竞争力的关键。正是因为全球分工，美国企业才得以享有各国政策优惠和成本优势，并以丰厚利润反哺美国本土研发创新，这种良性循环造就了美国科技领先地位。美方如今对全球绝大多数国家和地区加征关税，美国企业也深受其害。因为关税将通过产业链供应链逐级传导，加剧供应链断裂与产业空心化风险，增大发展制造业难度，从而削弱美国产业基础，降低美国企业竞争力.
The tariff war has a more direct impact on the American people. For a long time, free trade has brought a large number of high-quality and low-priced goods to the United States, enriched the lives of the American people, and ensured a relatively low price level in the United States. Affected by the additional tariffs, the pressure on the retail prices of daily consumer goods, such as food, clothing, electronic products and daily necessities, in the United States has increased significantly. The Yale University Budget Lab predicts that if other countries take countermeasures, the price increase of personal consumption expenditures in the United States will expand to 2.1%, and the average loss of low-, middle- and high-income families in the United States will be $1,300, $2,100 and $5,400. According to data from the Peterson Institute for International Economics, more than 90% of the tariff costs will be passed on to American importers, downstream companies and end consumers. As more and more importers reflect the additional tariffs on the shopping receipts of American consumers, the inevitable result is that domestic inflation in the United States will intensify. High inflation will constrain the monetary policy space of the Federal Reserve and further increase the cost of US debt.” 关税战对美国民众的冲击更为直接。长期以来，自由贸易为美国带来大量物美价廉的商品，丰富了美国民众的生活，维持了美国较低的物价水平。受加征关税影响，美国食品、服装、电子产品及日用品等日常消费品零售价格上涨压力明显增大。耶鲁大学预算实验室预测，在其他国家采取反制措施的情况下，美国个人消费支出价格涨幅将扩大至2.1%，美国低、中、高收入家庭平均将损失1300美元、2100美元、5400美元。彼得森国际经济研究所数据显示，90%以上的关税成本将转嫁至美国进口商、下游企业和最终消费者。随着越来越多进口商将加征关税体现在美国消费者的购物小票上，美国国内通货膨胀加剧是必然结果。通胀高企将束缚美联储货币政策空间，并进一步提高美国举债成本.
The piece then says: “history will eventually prove that the tariff club is actually a tariff ‘boomerang’ flying back at oneself. Blowing out another’s lamp will not make oneself brighter; blocking another’s path will not enable oneself to go further. The United States, obsessed with strength above all and the law of the jungle, engages in economic bullying, placing its own interests above the common interests of all countries, which is going against the course of history and accelerating the erosion of America’s national credibility. The US side should face up to the opposition from the international community and rational voices within the United States, abandon erroneous practices, and return to the track of cooperation. This is the right way to revitalise the American economy.” 历史终将证明，关税大棒其实是飞向自身的关税“回旋镖”。吹灭别人的灯，并不会让自己更加光明；阻挡别人的路，也不会让自己行得更远。美国迷信实力至上，沉迷于丛林法则，大搞经济霸凌，把自身利益凌驾于各国共同利益之上，是在开历史倒车，更在加速消耗美国的国家信誉。美方应正视国际社会的反对和美国国内的理性声音，摒弃错误做法，回归合作轨道。这才是重振美国经济的正道.