President Trump announced he is adding a 34% tariff on most imports from China. I believe this new round is on top on the 20% he added for Fentanyl, so at 54% he is close to the 60% he promised during his campaign, and these are in addition to the existing tariffs from the previous administration, so I think the US tariff rates on some Chinese imports may now be over 70%.
The PRC reaction is unlikely to be weak, and I doubt Xi and his team will just roll over and do nothing while trying to negotiate. Their reactions to the two rounds of fentanyl tariffs previewed their maturing economic coercion response toolbox, so we should probably assume any response may include more controls of exports of some critical minerals, investigations into and entity listing of some US firms, along with tariffs, and perhaps a larger than expected devaluation of the RMB against the dollar.
No matter the PRC reaction, the impact of these new tariffs will be quite damaging to the PRC economy, and so Xi has a lot of economic incentive to swallow his pride and start negotiating with Trump, and quickly.
The new tariffs are not the only destabilizing event today. The PRC ramped up its threats to Taiwan with a second day of exercises, now named Strait Thunder-2025A (海峡雷霆 2025A0 - which implies there will be at least “B” later this year. The exercise has now concluded, and on Wednesday there was some live fire - rockets from Fujian into the sea, but not too close to Taiwan.
On a day like today, changes unseen in a century feel like they are happening a lot faster…
Summary of today’s top items:
**1.Tariffs -**In advance of today’s tariff announcement People’s Daily has started a Zhong Sheng Commentary series titled “Fully Understanding the Win-Win Nature of China-US Relations 充分认识中美关系互利共赢的本质”. As of April 2nd there are two installments. The first one is from March 31st and is titled "Moving Towards Each Other, Letting Investments Better Benefit the People of Both Countries", the second from April 2nd and titled “Enriching the Table, Agricultural Cooperation Boosts Farmers' Wallets”. Perhaps the commentator group and the NDRC do not coordinate, as todayBloomberg reported that “several branches of China’s top economic planning agency, the National Development and Reform Commission, have been instructed in recent weeks to hold off on registration and approval for firms that are looking to invest in the US”.
2.Strait Thunder 海峡雷霆-2025A Exercise - Among the goals of the exercise Wednesday, according to WeChat account of the PLA Eastern Theater Command, was “controlling energy lanes, cutting off supply routes, and blocking escape paths” by drilling precision strikes on simulated targets such as key ports and energy facilities.
3. Propaganda warfare element of Strait Thunder-2025A
People’s Daily:
Lai Ching-te is a ruthless "war maker"…Dreaming foolishly, he attempts to internationalize the Taiwan issue, "seeking independence by relying on foreign forces," and using external forces to realize the evil dream of "Taiwan independence." On one hand, he uses money, bribery, and coercion to expand the so-called "international space" for "Taiwan independence"; on the other hand, he "exhausts Taiwan's resources to please external forces," whether it is high-priced military procurement orders or core competitive enterprises like TSMC, Lai Ching-te's authorities will hand them over. What he hopes for is nothing more than that the "foreign masters" can support "Taiwan independence," give him courage, and even fantasize that if a war breaks out in the Taiwan Strait, external forces can "co-defend" and "protect."
PLA Daily:
Lai's actions for "independence" are arrogant, malicious, and too numerous to list. In less than a year since taking office, Lai Ching-te has repeatedly offended national interests and crossed the red line of peace. Last year, in his so-called "inaugural" speech, he made outrageous remarks, spreading the fallacy of "mutual non-subordination" between the two sides of the Taiwan Strait, casting a shadow over cross-strait relations from the beginning, making him an unequivocal "troublemaker." At the end of the year, during his transit through Guam on a visit to "diplomatic allies," he falsely claimed that "Guam and Taiwan are both located in the first island chain," revealing his sinister intention to drag the entire Asia-Pacific region into a crisis vortex, making him a thorough "danger maker." Especially since the beginning of this year, he has intensified his actions, brazenly putting forward the so-called "17 strategies," vigorously manipulating "all-people defense" and "resilience operations," equating "cross-strait relations" with "hostile relations," seriously undermining the foundation of peace and stability in the Taiwan Strait, making him an undeniable "war maker."..
Another PLA Daily commentary:
"Taiwan independence" is a national scourge, and separation is a dead-end road. For "Taiwan independence" separatists like Lai Ching-te, who are incorrigible and beyond redemption, they must be severely punished in a way that they can understand, fear, and feel pain. The series of powerful actions taken by the People's Liberation Army this time once again proves that every provocation by Lai Ching-te's authorities will be met with a step forward by the People's Liberation Army, tightening the noose around the necks of the "Taiwan independence" separatists and sharpening the sword hanging over their heads. Those who forget their ancestors, attempt to split the country, and betray the nation will never have a good end and will be condemned by the people and judged by history!
**4.Strange moves in the top leadership -**In what appears to be an unprecedented move, two Politburo members have switched jobs. Li Ganjie, 60, has replaced Shi Taifeng, 68, as head of the United Front Work Department and Shi has replaced Li as head of the Organization Department. The Organization Department is more powerful and so this looks to be a sort of demotion for Li, and so may not be great for his promotion prospects at the 2027 21st Party Congress. Shi has a history at the Central Party School, whose head is usually the head of the Organization Department. For whatever reason Li never replaced Chen Xi in that job; perhaps now Chen can retire and Shi will get that post as well.
The speculation about He Weidong looks more accurate as he did not appear at the annual CMC tree planting show in Beijing. Something is clearly rotten near the top of the PLA. And what a sad state of things that we are reduced to reading the tree planting leaves...Minister of Defense Dong Jun did appear at the event.
**5.Opinion on Improving the Price Governance Mechanism -**On April 2, the General Office of the Central Committee of the Communist Party and the State Council issued an opinion on price governance mechanisms, in a document dated December 5, 2024. The overarching goals are to perfect price-related mechanisms and allow the price to sufficiently reflect supply and demand, part of a broader plan to improve source allocation efficiency and better serve China’s modernization. The the construction of a unified national market is a key focus of the opinion, as the “general requirements” section states:
In our work, we must: adhere to the direction of socialist market economy reform, let the market determine prices wherever possible, promote the efficient and smooth flow of advanced and high-quality production factors, and effectively serve the construction of a unified national market. Adhere to a systematic concept and comprehensive policies, coordinate domestic and international markets and resources, consider all links in the upstream and downstream, strengthen the coordination and linkage of reforms in various fields, achieve reasonable price formation, coordinated sharing of benefits, effective protection of people's livelihood, and efficient and transparent supervision. Adhere to problem orientation and reform innovation, focus on key areas and critical links, effectively solve the difficulties and blockages in price governance, make prices fully reflect market supply and demand, and enhance price flexibility. Adhere to the rule of law in pricing, improve price laws and regulations, enhance the scientific level of price governance, and regulate the pricing behavior of business entities.
**6.More TikTok deal talk -**The Informationreports that in the current proposal “TikTok America would be roughly 50% owned by new U.S. investors and license TikTok’s algorithm from ByteDance, the person said. Existing investors in ByteDance would have a roughly one-third stake in the new company, while ByteDance would retain a 19.9% stake.” That structure would still be in violation of the law, but that no longer seems to matter. It is also not clear if the PRC government will agree to this structure, and given the tariff announcements today they will probably reject it unless Trump makes concessions on tariffs.
**7.Nvidia upgrades H20 as PRC demand surges -**The Informationreports that “Chinese companies including ByteDance, Alibaba Group and Tencent Holdings have placed at least $16 billion in orders for Nvidia’s H20 server chips” in Q1 2025, and that most have ordered an upgraded version that uses the “same powerful, high-bandwidth memory chips” that are in the Blackwell system.
Thanks for reading, and good luck if you are invested in the stock markets, it is shaping up to be a brutal day.
1. Tariffs
There are some exemptions for now - Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security – The White House
Today’s IEEPA Order also contains modification authority, allowing President Trump to increase the tariff if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters.
Some goods will not be subject to the Reciprocal Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.
双向奔赴，让投资更好惠及两国人民（钟声）
People's Daily commentator Zhong Sheng has launched a new series - Fully Understanding the Win-Win Nature of China-US Relations 充分认识中美关系互利共赢的本质. As of April 2nd there are two installments. This first one is from March 31st and is titled "Moving Towards Each Other, Letting Investments Better Benefit the People of Both Countries"
Excerpt:
The logic of China-US investment cooperation is clear. While there is competition between the industries of the two countries, there is even more complementarity. By leveraging their respective advantages and strengthening investment cooperation, China and the US can fully achieve mutual benefits and win-win results.
中美投资合作的逻辑清晰明了。两国产业存在竞争，但更多是高度互补。通过发挥各自优势，加强投资合作，中美完全可以实现互利共赢
In February this year, Tesla's Shanghai Energy Storage Super Factory officially went into production. The factory initially plans to produce 10,000 commercial energy storage batteries annually, with a storage capacity of nearly 40 gigawatt-hours. Thanks to this project, Tesla's energy system installation volume is expected to increase by more than 50% year-on-year this year. This factory, covering an area of 200,000 square meters, took just over eight months from groundbreaking to production, once again demonstrating the impressive efficiency generated by the combination of "Shanghai speed" and "Tesla speed." It is also one of the latest examples of win-win China-US investment cooperation...
今年2月，特斯拉上海储能超级工厂正式投产。工厂初期规划年产商用储能电池1万台，储能规模近40吉瓦时。得益于这一项目，特斯拉能源系统装机量预计今年将同比增长50%以上。这个占地20万平方米的工厂从动工到投产用时仅8个多月，再次展现了“上海速度”与“特斯拉速度”相加所产生的惊人效率，也是中美投资合作共赢的最新案例之一。
Sean Stein, president of the US-China Business Council, stated that China has grown into the world's second-largest consumer market, providing vast opportunities for multinational operators to invest and operate. Some American individuals have also suggested moving factories back to the US. Apple once tried to produce high-end computers in the US but ultimately found that the efficiency of US factories was far inferior to that of Chinese factories. Apple CEO Tim Cook admitted, "Without our Chinese partners, Apple would not have achieved today's success."
美中贸易全国委员会会长谭森表示，中国已经成长为全球第二大消费市场，这为跨国经营者投资兴业提供了十分广阔的商机。还有少数美方人士提出，把工厂搬回美国行不行？苹果公司曾尝试在美国本土生产高配电脑，但最终发现美国工厂的效率远不及中国工厂。苹果公司首席执行官库克坦言：“没有中国的合作伙伴们，苹果就无法取得今天的成就。”
The logic of China-US investment cooperation is clear. While there is competition between the industries of the two countries, there is even more complementarity. By leveraging their respective strengths and strengthening investment cooperation, China and the US can fully achieve mutual benefits and win-win results, achieving the effect of "1+1>2." China's economy continues to recover and improve, providing a more solid foundation for investing in China. International investors generally believe that embracing China is embracing opportunities, and investing in China is investing in the future. Chinese companies investing in the US also bring development opportunities and provide jobs for the US. Politicizing investment issues and arbitrarily restricting two-way investment by the US side will not enhance its competitiveness, nor will it curb China's development. It will only harm the vital interests of companies and people on both sides.
中美投资合作的逻辑清晰明了，尽管两国产业有相互竞争的一面，但更有高度互补的一面。中美发挥各自长处，加强投资合作，完全可以互利共赢，达到“1+1＞2”的效果。中国经济持续回升向好，投资中国的基础更加牢固。国际投资者普遍认为，拥抱中国就是拥抱机遇，投资中国就是投资未来。中国企业赴美投资也给美国带来发展机遇，提供就业岗位。美方将投资议题政治化，任意限制双向投资，不仅无助于提升自身竞争力，更无法遏制中国发展，只会损害双方企业和民众的切身利益。
China Restricts Companies From Investing in US as Tensions Rise - Bloomberg
Several branches of China’s top economic planning agency, the National Development and Reform Commission, have been instructed in recent weeks to hold off on registration and approval for firms that are looking to invest in the US, the people said, asking not to be identified discussing sensitive issues...
There’s no sign that existing commitments by Chinese companies in the US and elsewhere, or China’s purchases and holdings of financial products including US Treasuries, would be affected, the people said. It’s unclear what prompted the NDRC to halt the processing of applications or how long this suspension might last.
丰富餐桌，农业合作鼓起农民“钱袋子”（钟声）
Second in the People's Daily commentator Zhong Sheng series "Fully Understanding the Win-Win Nature of China-US Relations", this one titled "Enriching the Table, Agricultural Cooperation Boosts Farmers' Wallets" appeared in the April 2nd People's Daily
Excerpt:
The import of agricultural products from the United States meets the needs of the Chinese market, promotes the development of related industries in the United States, and increases the income of American farmers, bringing tangible benefits to both sides...
自美国进口的农产品满足了中国市场的需求，推动了美国相关产业的发展，增加了美国农民的收入，双方都获得了实实在在的好处
China-US agricultural cooperation not only enriches the tables of the people in both countries but also boosts the wallets of farmers in both countries. In 2023, the average American farmer exported nearly $9,000 worth of products to China. In January last year, China and the US resumed the agricultural cooperation mechanism, providing new opportunities for the joint development of climate-smart agriculture and increasing food production. The list of agricultural cooperation between the two countries has further expanded. As China moves from being a major agricultural country to a strong agricultural country, with nearly 500 million farmers entering modernization, the demand of the Chinese people for high-quality agricultural products will grow faster, and China-US agricultural cooperation will have broader space in an open market.
中美农业合作不仅丰富了两国人民的餐桌，也鼓起了两国农民的“钱袋子”。2023年，平均每个美国农民对华出口近9000美元。去年1月中美重启农业合作机制，为共同发展气候智能农业、提高粮食产量提供新机遇，两国农业合作的清单进一步拉长。随着中国从农业大国向农业强国迈进，近5亿农民整体迈入现代化，中国人民对高质量农产品的需求将更快增长，中美农业合作将在开放市场中迎来更广阔空间。
Deepening China-US agricultural cooperation not only benefits both countries but also has significant implications for global food security and agricultural development. The production and consumption of agricultural products in China and the US are highly complementary. Cooperation in agriculture between the two countries is not only an important pillar of bilateral economic and trade relations but also a key part of the global food security system. From precision agriculture to biotechnology, from water-saving irrigation to smart farms, cooperation between the two countries in agricultural technology and sustainable development provides important momentum for global agricultural modernization, contributing wisdom and solutions to the transformation and upgrading of global food production methods and the construction of a world free from hunger and poverty...
中美农业深化合作不仅惠及两国，还对全球粮食安全和农业发展具有重要意义。中美两国的农产品生产和消费互补性强，两国在农业领域的合作，不仅是双边经贸关系的重要支柱，也是全球粮食安全体系的关键一环。从精准农业到生物技术，从节水灌溉到智慧农场，两国在农业科技、可持续发展等领域的合作，为全球农业现代化提供了重要动力，为世界粮食生产方式的转型升级、建设免于饥饿贫困的世界贡献智慧和方案。
There are no winners in a trade war. Unilateralism and protectionism not only violate the laws of the market economy but also undermine the foundation of China-US agricultural cooperation. Agriculture concerns people's well-being and should not be politicized or securitized. China has always maintained an open and inclusive attitude, firmly advancing high-level opening-up. It is hoped that the US will work with China to resolve differences through dialogue and consultation, create a good environment for agricultural cooperation, allow farmers and consumers in both countries to continue to benefit from it, and jointly promote the sustainable development of global agriculture.
贸易战不会有赢家，单边主义和保护主义不仅违背市场经济规律，也损害中美两国农业合作基础。农业关乎民生福祉，不应被政治化、泛安全化所绑架。中国始终秉持开放包容的态度，坚定不移推进高水平对外开放。希望美方同中方相向而行，通过对话协商解决分歧，为农业合作创造良好环境，让两国农民和消费者继续从中受益，共同推动全球农业的可持续发展。
Walmart Keeps Price Pressure on Suppliers Due to Tariffs Despite China Pushback - Bloomberg
Walmart Inc. is continuing to push Chinese suppliers to cut prices to offset President Donald Trump’s tariffs, even after Beijing officials summoned the US retailer’s executives last month to discuss the issue, according to people familiar with the matter.
The world’s largest retailer has not backed down from its requests to suppliers to cut prices by as much as 10% for each round of tariffs, essentially asking them to shoulder Trump’s duties, according to the people, who asked not to be identified as the information is private.
Xinhua Commentary: Appeasing Washington will lead to more economic bullying
By doubling down on tariffs under the pretext of "fairness," Washington is expected to roll out a swathe of so-called "reciprocal tariffs" against a number of countries on Wednesday, including its long-term allies and major trading partners.
As the countries worldwide prepare to face the repercussions, one thing has become increasingly clearer: this U.S. administration under Donald Trump takes economic coercion simply as a winning strategy. Concessions can only embolden its appetite for bullying.
To set the record straight, willful tariff escalation is in no way to fix global trade problems. The more alarming truth is that building up trade barriers has already become one of Washington's attempts to wield economic pains as a leverage for geopolitical gains. It is also an effort to enforce obedience abroad while shifting blames for domestic structural failures overseas.
China’s Tariff-Dodging Move to Mexico Looks Doomed - WSJ
Chinese companies have kept many goods flowing to the U.S. by manufacturing in Mexico, where products ship to the U.S. tariff-free under the U.S.-Mexico-Canada Agreement that Trump negotiated in his first term. Chinese firms have invested billions of dollars in hundreds of Mexican factories that make auto parts, electronics, home appliances, furniture, medical equipment and other products for the American market.
To Trump’s dismay, the U.S. trade deficit with Mexico has grown to nearly $172 billion last year from about $78 billion in 2018. His administration now wants to stop what it views as a major loophole in the trade agreement he signed with America’s closest neighbors.
Could this actually be how the Trump team came up with thesetariff rates?
2. Strait Thunder 海峡雷霆-2025A Exercise
PLA wraps up joint drills around Taiwan in deterrence to separatists - Global Times
The Wednesday exercises focus on subjects of identification and verification, warning and expulsion, and interception and detention to test the troops' capabilities in area regulation and control, joint blockade and control, and precision strikes on key targets, Shi said.
Fu Zhengnan, an expert at the PLA's Academy of Military Science, told the Global Times on Wednesday that the "Strait Thunder-2025A" exercises formed a situation in which the island of Taiwan is surrounded on two sides, as "independence" forces are pinned down and deterred.
From the "Joint Sword" series drills in 2024 to the latest "Strait Thunder" operation, the change in code name means the PLA's military measures to deter "independence" are becoming more and more comprehensive, according to Fu.
Fu said that during the exercises, the PLA Eastern Theater Command had warships and warplane formations advancing simultaneously, locking down the island from two directions, and conducted simulated strikes on key "Taiwan independence" targets. Under the support of a strong reconnaissance and early warning system, the PLA quickly seized comprehensive control over the battlefield through aerial interception, sea assault and land strikes, forming a psychological deterrence on the "Taiwan independence" forces.
东部战区圆满完成联合演训各项任务 - 中国军网
东部战区新闻发言人施毅陆军大校表示，4月1日至2日，中国人民解放军东部战区圆满完成联合演训各项任务，全面检验了部队一体化联合作战能力。战区部队时刻保持高度戒备，持续加强练兵备战，坚决挫败一切“台独”分裂行径。
Senior Colonel Shi Yi, spokesperson of the PLA Eastern Theater Command, says that the Eastern Theater Command has completed all designated tasks of the joint exercises carried out from April 1 to 2. The exercises tested the troops’ integrated joint operations capabilities. Troops of the theater command remain on high alert at all times, and will continue to strengthen combat readiness with intensive training, resolutely thwarting any separatist activities seeking “Taiwan independence”.
Foreign Ministry Spokesperson Guo Jiakun’s Regular Press Conference on April 2, 2025_Ministry of Foreign Affairs of the People's Republic of China
CCTV: It’s reported that the U.S., EU, Japan and some others made remarks on the joint exercises around Taiwan Island conducted by the People’s Liberation Army on April 1. They oppose unilateral changes to the status quo, including through force or coercion, and said that there is no justification for China’s irresponsible threats and military pressure operations near Taiwan. What’s China’s comment?
Guo Jiakun: The accusation of a handful of countries and organizations against China is a mischaracterization of the facts and truth and an interference in China’s internal affairs. China deplores and opposes this. The Taiwan question is purely China’s internal affairs that brook no external interference. “Taiwan independence” separatist activities and external forces that abet and aid them are the ones that undermine peace and stability across the Taiwan Strait. If certain countries and organizations truly want peace and stability across the Taiwan Strait, they should follow the prevailing trend of international commitment to the one-China principle, abide by their political commitments made to China, earnestly respect China’s sovereignty and territorial integrity, and oppose “Taiwan independence” in any form.
Moves to clamor for “Taiwan independence” mean separating China, support for “Taiwan independence” means interference in China’s internal affairs, and attempts to abet “Taiwan independence” mean destabilizing the Taiwan Strait. China’s joint exercises is a severe punishment against the Lai Ching-te authorities’ aggressive provocation to seek “Taiwan independence,” a stern warning to “Taiwan independence” separatist forces who deliberately undermine peace across the Taiwan Strait, and a responsible move to defend national sovereignty, security and territorial integrity. No external force is in any position to point fingers at this.
As long as provocations for “Taiwan independence” last, our punishment against “Taiwan independence” will continue. We will never ever allow anyone or any force to separate Taiwan from China in any form. We will take all measures necessary to firmly safeguard national sovereignty and territorial integrity.
为何打击台岛重要港口等模拟目标？专家解读
CCTV - Why Target Important Ports and Other Simulated Targets on Taiwan Island? Expert Interpretation
Professor Zhang Chi of the National Defense University: Taiwan is an isolated island. Once it loses its maritime supply routes, its war potential will quickly decline, and its living order will fall into chaos. Our exercises are meant to form a strong deterrent against the "Taiwan independence" separatist forces, which is reasonable, justified, and legal.
国防大学教授张弛：台湾是个孤岛，一旦失去海上方向供给，它的战争潜力会快速下降，生活秩序也会陷入混乱。我们的演练就是要对“台独”分裂势力形成强有力震慑，有理有据、合理合法。
Live-fire rocket shooting biggest highlight of ‘Strait Thunder-2025A’ drills: expert - Global Times
The WeChat account of the PLA Eastern Theater Command further elaborated on the desired effects of the live-fire shooting: controlling energy lanes, cutting off supply routes, and blocking escape paths, as thunderous strikes as seen in the live-fire shooting will firmly slash the “green terror” path of “independence.”
“The biggest highlight of today’s drills is the long-range live-fire drills, which served as a powerful deterrence against the ‘Taiwan independence’ forces. After years of development, the PLA’s comprehensive capabilities kept on rising, as its ability to fight and win continues to increase, sufficient enough to smash the ‘Taiwan independence’ forces into pieces,” Fu Zhengnan, an expert at the PLA’s Academy of Military Science, told the Global Times on Wednesday.
国防部新闻发言人张晓刚就美台等炒作东部战区位台岛周边联合演训行动答记者问 - 中国军网
Ministry of National Defense Spokesperson Zhang Xiaogang Answers Questions on the Joint Exercises Around Taiwan Island by the Eastern Theater Command
Excerpt:
Zhang Xiaogang: The authorities of Lai Ching-te have been recklessly provoking "independence," exacerbating tensions and confrontations across the Taiwan Strait, and recklessly pursuing "independence by relying on foreign forces" and "resisting reunification by force." The People's Liberation Army's Eastern Theater Command organized realistic joint exercises around Taiwan Island to demonstrate its strong capability to strike against "Taiwan independence" provocations and to convey its determination and will to safeguard national sovereignty, security, and territorial integrity. This serves as a powerful deterrent against the retrogressive actions and deliberate warmongering of "Taiwan independence" elements and is entirely justified, necessary, and reasonable.
张晓刚：赖清德当局猖狂谋“独”挑衅，加剧两岸紧张对立，在“倚外谋独”、“以武拒统”道路上狂奔乱撞。中国人民解放军东部战区位台岛周边组织实战化联合演训，展示打击“台独”挑衅的强大能力，传递捍卫国家主权安全和领土完整的决心意志，是对“台独”分子倒行逆施、蓄意引战的有力警慑，完全正当必要、合情合理。
Comment: Taiwan is the warmonger...
PLA’s drills in Taiwan Straits show key trends in deterrence, flexibility and diverse operations: expert - Global Times
First, in the Taiwan Straits itself, the PLA exercised long-range fire control and conducted live-fire drills.
Second, along Taiwan's coastal areas, the PLA and China Coast Guard carried out joint control operations. Third, in the east of Taiwan island, the PLA deployed aircraft carriers to block potential external reinforcements. Fourth, beyond the island chain, PLA Air Force bomber formations conducted patrols outside the island chain, according to Zhang.
China’s New Barges Reveal How it Might Try to Seize Taiwan - The New York Times
Pictures from foreign satellites have shown the barges practicing with civilian Chinese cargo ships and ferries that could carry vehicles and people to be offloaded onto the causeway. China featured the barges on a recent program about military rivalry with Taiwan, warning that they could play a potential role in an attack.
“This equipment is a bridge and a port combined into one,” Wei Dongxu, a CCTV commentator on the show, said of the barges. Once China gains dominance in the skies and seas, he said, ships loaded with military vehicles could dock with the barges and unload the vehicles, enabling heavy combat equipment to land without touching the water. He said of the barges: “Once they appear, that means that the landing has scored a major victory.”
宋涛会见夏立言一行-新华网
Song Tao, Director of the Taiwan Affairs Office of the Central Committee of the Communist Party of China and the Taiwan Affairs Office of the State Council, met with Hsia Li-yan, Vice Chairman of the Chinese Kuomintang (KMT), and his delegation in Xuzhou, Jiangsu Province, on April 2...
Hsia Li-yan stated that both sides of the Taiwan Strait belong to one China. Whether Taiwanese or mainlanders, they are all dignified Chinese, and there is no difference that cannot be resolved. The Chinese Kuomintang is willing to promote the peaceful development of cross-strait relations on the common political basis of adhering to the 1992 Consensus and opposing "Taiwan independence."
3. Propaganda warfare element of Strait Thunder-2025A
赖清德：穷凶极恶的“战争制造者” --新闻报道-中国共产党新闻网
People's Daily "Zhong Yiping" commentator - Lai Ching-te: A Ruthless "War Maker"
Excerpt:
The facts fully prove that Lai Ching-te is a ruthless "war maker." To satisfy his inflated political ambitions, he does not hesitate to bind Taiwan to the "Taiwan independence" war chariot; to exchange for narrow political self-interest, he does not hesitate to use Taiwan's people's livelihood and future as "bargaining chips." Such despicable actions are truly shameless.
Dreaming foolishly, he attempts to internationalize the Taiwan issue, "seeking independence by relying on foreign forces," and using external forces to realize the evil dream of "Taiwan independence." On one hand, he uses money, bribery, and coercion to expand the so-called "international space" for "Taiwan independence"; on the other hand, he "exhausts Taiwan's resources to please external forces," whether it is high-priced military procurement orders or core competitive enterprises like TSMC, Lai Ching-te's authorities will hand them over. What he hopes for is nothing more than that the "foreign masters" can support "Taiwan independence," give him courage, and even fantasize that if a war breaks out in the Taiwan Strait, external forces can "co-defend" and "protect." But fantasy is ultimately fantasy. To external forces, Lai Ching-te's authorities are nothing more than pawns to be used or discarded as needed. No matter how much he grovels and flatters, it cannot change his fate from "pawn" to "discarded pawn," only emptying Taiwan's resources, overdrawing Taiwan's future, and pushing the Taiwan Strait step by step to the brink of war...
The obstinate and self-deceiving Lai Ching-te is still deluding himself. Every provocation he makes has a marked price and is digging his own grave. From a series of military deterrence actions to the Anti-Secession Law's sword hanging high... As long as Lai Ching-te dares to test the law and cross the line, what awaits him will be an unbearable disaster. "Taiwan independence" is incompatible with peace, and "Taiwan independence" means war. We firmly strike against "Taiwan independence" provocations, firmly oppose and curb external interference, and do not promise to renounce the use of force, reserving the option to take all necessary measures. Lai Ching-te's authorities should not harbor illusions and luck, nor should they underestimate our strong determination, firm will, and powerful capability to defend national sovereignty and territorial integrity. Once it comes to the point where decisive action must be taken, it will be the day of the complete destruction of the "Taiwan independence" separatists.
解放军联合演训是对赖清德当局猖狂谋“独”挑衅的坚决惩戒 --新闻报道-中国共产党新闻网
Taiwan Affairs Office: PLA Joint Exercises Are a Firm Punishment for Lai Ching-te's Reckless "Independence" Provocations
Excerpt:
Zhu Fenglian pointed out that Lai Ching-te stubbornly adheres to the separatist stance of "Taiwan independence," brazenly labeling the mainland as a "hostile foreign force," and has put forward the so-called "17 strategies," recklessly provoking the mainland, inciting "anti-China" sentiments, obstructing cross-strait exchanges and cooperation, and exacerbating tensions in the Taiwan Strait. This fully confirms that he is a "destroyer of cross-strait peace" and a "creator of crises in the Taiwan Strait," thoroughly exposing his ugly face of being anti-peace, anti-exchange, anti-democracy, and anti-humanity. We will not tolerate or condone this and must firmly counteract and severely punish it.
朱凤莲表示，赖清德顽固坚持“台独”分裂立场，悍然将大陆界定为“境外敌对势力”，抛出所谓“17项策略”，猖狂挑衅大陆，煽动“反中抗中”，阻挠两岸交流合作，加剧台海紧张局势，充分坐实其是“两岸和平破坏者”“台海危机制造者”，彻底暴露其反和平、反交流、反民主、反人性的丑恶面目。对此，我们决不容忍、决不姑息，必须坚决反制、严厉惩戒。
钧正平：“台独”意味着战争，勿谓言之不预也 - 中华人民共和国国防部
PLA Daily Commentator Jun Zhengping - "Taiwan Independence" Means War, Do Not Say That It Was Not Predicted
Excerpt:
Every provocation by "Taiwan independence" is met with a step forward in punishment. On April 2, the People's Liberation Army's Eastern Theater Command organized the "Strait Thunder-2025A" exercise in the central and southern waters of the Taiwan Strait. This is a stern response to the recent series of malicious "independence" actions and statements by the Democratic Progressive Party (DPP) authorities. Since Lai Ching-te took power in May last year, the situation in the Taiwan Strait has become increasingly tense. The culprit behind the current tense situation is Lai Ching-te himself.
“台独”挑衅一次，惩戒就进逼一步。4月2日，中国人民解放军东部战区位台湾海峡中部、南部相关海域组织“海峡雷霆-2025A”演练。这是对民进党当局近期一系列恶劣谋“独”言行的严正回应。自去年5月赖清德掌权以来，台海已渐呈风急浪高之势。造成如今这一切紧张局势的罪魁祸首正是赖清德本人。
Lai's actions for "independence" are arrogant, malicious, and too numerous to list. In less than a year since taking office, Lai Ching-te has repeatedly offended national interests and crossed the red line of peace. Last year, in his so-called "inaugural" speech, he made outrageous remarks, spreading the fallacy of "mutual non-subordination" between the two sides of the Taiwan Strait, casting a shadow over cross-strait relations from the beginning, making him an unequivocal "troublemaker." At the end of the year, during his transit through Guam on a visit to "diplomatic allies," he falsely claimed that "Guam and Taiwan are both located in the first island chain," revealing his sinister intention to drag the entire Asia-Pacific region into a crisis vortex, making him a thorough "danger maker." Especially since the beginning of this year, he has intensified his actions, brazenly putting forward the so-called "17 strategies," vigorously manipulating "all-people defense" and "resilience operations," equating "cross-strait relations" with "hostile relations," seriously undermining the foundation of peace and stability in the Taiwan Strait, making him an undeniable "war maker."..
赖氏谋“独”行径，狂妄恶劣、罄竹难书。上台不到一年，赖清德就屡屡冒犯民族之利益，踩踏和平之红线。去年他在所谓“就职”演讲中大放厥词，散布“两岸互不隶属”的谬论，从一开始就令两岸关系蒙上了阴影，是不折不扣的“麻烦制造者”；同年底窜访“邦交国”过境关岛时，妄称“关岛和台湾都位于第一岛链”，将整个亚太地区拖入危机漩涡的险恶用心暴露无遗，是彻头彻尾的“危险制造者”；尤其今年以来更是变本加厉，悍然抛出所谓“17项策略”，大肆操弄“全民防卫”“韧性作战”，将“两岸关系”等同于“敌对关系”，严重破坏了台海和平稳定的基石，已沦为毫无疑义的“战争制造者”。
Selling Your Life for "Taiwan Independence" is Shameful, Dying for "Taiwan Independence" is Tragic. When the DPP authorities weave the fantasy of "green terror for independence," every Taiwanese citizen needs to clearly see through their malicious intent to push the Taiwan Strait into a dangerous situation for the selfish interests of one party. Today's world is not peaceful; look at the lands in the Middle East, Eastern Europe, and Africa that are deeply mired in war: artillery fire everywhere, ruins, and no remains. Nothing is more painful than war, and nothing is more precious than peace. We hope that the vast majority of Taiwanese compatriots can recognize the trampling and destruction of peace by the actions of Lai Ching-te and his ilk, and the harm and poison they bring to Taiwan. Do not be lucky, do not be numb, and resolutely and effectively fight against their retrogressive actions to avoid gradually falling into the tragic situation of "everyone becoming cannon fodder."
替“台独”卖命可耻，给“台独”殉葬可悲。当民进党当局大力编织“绿恐谋独”的幻梦时，每一位台湾民众都需清醒识破其为一党一己之私将台海推向兵凶战危境地的恶毒居心。今天的世界并不太平，看看中东、东欧、非洲那些深陷战乱中的土地：炮火连天、断壁残垣、尸骨无存。没有什么比战争更痛苦，没有什么比和平更宝贵。望广大台湾同胞能够认清赖清德之流所作所为对和平之践踏破坏、对台湾之危害毒害，不要侥幸、不要麻痹，同其倒行逆施行为作坚决有效之斗争，以避免一步步陷入“全民当炮灰”的悲惨境地。
钧声丨惩戒“台独” 利剑高悬 - 中华人民共和国国防部
PLA Daily commentator Jun Sheng - The Sword of Punishment for "Taiwan Independence" Hangs High
Excerpt:
Lai Ching-te, who prides himself on being a "pragmatic worker for Taiwan independence," has a long record of anti-China and anti-Taiwan actions that are too numerous to list. He confuses right and wrong, continuously distorts and denies the "1992 Consensus"; distorts historical facts, uses "cultural Taiwan independence" to create psychological barriers among compatriots; seeks foreign favor, hands over Taiwan's advantageous industries; and insanely attempts to turn Taiwan into a "porcupine" or "hedgehog."
Particularly arrogant and rampant, on the eve of the 20th anniversary of the implementation of the Anti-Secession Law, Lai Ching-te's authorities brazenly put forward the so-called "17 strategies" to respond to the mainland's "five threats," further restricting cross-strait exchanges and imprisoning Taiwanese compatriots, akin to forcing Taiwan into a state of "quasi-martial law." In response, various sectors on the island have expressed strong opposition and severe condemnation, pointing out that these hysterical provocations will further plunge Taiwan into the quagmire of "terror politics and green dictatorship," and have demanded that Lai Ching-te's authorities immediately stop and change course.
The malicious actions of Lai Ching-te's authorities fully prove that "Taiwan independence" is incompatible with peace in the Taiwan Strait and is diametrically opposed to the interests of the people. Here, we call on the vast majority of Taiwanese compatriots to fully recognize the extreme harm and destructiveness of the DPP's "seeking independence by relying on foreign forces" and "resisting reunification by force," fully recognize the true nature of Lai Ching-te as a "troublemaker," "danger maker," and "war maker," and fully recognize the serious consequences caused by the "Taiwan independence" separatists' selfish and reckless actions. Let us join hands to resolutely oppose the "Taiwan independence" separatist actions and jointly promote the return of cross-strait relations to the path of peaceful development. This is not only for the national righteousness and Taiwan's development but also for the well-being and future of everyone...
"Taiwan independence" is a national scourge, and separation is a dead-end road. For "Taiwan independence" separatists like Lai Ching-te, who are incorrigible and beyond redemption, they must be severely punished in a way that they can understand, fear, and feel pain. The series of powerful actions taken by the People's Liberation Army this time once again proves that every provocation by Lai Ching-te's authorities will be met with a step forward by the People's Liberation Army, tightening the noose around the necks of the "Taiwan independence" separatists and sharpening the sword hanging over their heads. Those who forget their ancestors, attempt to split the country, and betray the nation will never have a good end and will be condemned by the people and judged by history!
进逼！慑封！毁瘫！锁控！“台独”作妖引天火-新华网
Eastern Theater Command WeChat Public Account
Advancing: "Taiwan independence" provokes disaster.
Deterring: The more they stir up trouble, the tighter the grip.
Destroying: Going against the tide will lead to a dead end.
Controlling: Encircling and controlling, everything is under control.
进逼：“台独”作妖，引火烧身
慑封：闹得越凶，勒得越紧
毁瘫：倒行逆施，必陷绝境
锁控：围锁瞰制，尽在掌握
4. Strange moves in the top leadership
In a first for China’s Communist Party, Politburo members Li Ganjie and Shi Taifeng swap jobs | South China Morning Post
In an unprecedented swap, the heads of the personnel department and influence machine of China’s ruling Communist Party have switched roles.
Li Ganjie has become head of the United Front Work Department and Shi Taifeng is the new chief of the Organisation Department, according to official media and a statement released on Wednesday that included their new titles.
State news agency Xinhua confirmed Li’s new role by reporting on his attendance at a meeting on Wednesday, while Shi conducted an inspection of the personnel department in his new capacity on the same day, according to an announcement by the office...
There is no previous case of Politburo members swapping positions. The usual term length for any position at the duo’s level is five years. Both were promoted to the Politburo at the 20th party congress in October 2022. Li was given his current job in April 2023 and Shi in October 2022.
张又侠和尹力参加首都义务植树活动-新华网
Zhang Youxia, member of the Political Bureau of the Communist Party of China Central Committee and Vice Chairman of the Central Military Commission, came to the green space plot in Tongzhou District, Beijing on the morning of the 2nd to participate in a voluntary tree planting activity. Yin Li, member of the Political Bureau of the Communist Party of China Central Committee and Secretary of the Beijing Municipal Committee, also participated in the voluntary tree planting...
中共中央政治局委员、中央军委副主席张又侠2日上午来到北京市通州区绿化地块参加义务植树活动。中共中央政治局委员、北京市委书记尹力参加义务植树。
Members of the Central Military Commission, Liu Zhenli and Zhang Shengmin, participated in the voluntary tree planting. Leaders from various departments of the Military Commission offices, relevant units stationed in Beijing, and relevant Beijing municipal leaders participated together.
中央军委委员刘振立、张升民参加义务植树。军委机关各部门、驻京有关单位和北京市有关领导一同参加。
5. Opinion on Improving the Price Governance Mechanism
China issues new guideline to strengthen price governance mechanism-Xinhua
The guideline was issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.
It aims to improve the market price formation mechanism to promote efficient resource allocation, the price guidance mechanism for key areas' development and security, the price regulation mechanism to maintain reasonable price levels, and the transparent and predictable market price supervision mechanism.
China will enhance the market price formation mechanism by deepening market-oriented price reform, accelerating the market construction of key areas and creating a competitive and orderly market environment.
Price guidance will target five critical areas: agricultural products to ensure food security, energy pricing to support green transition, public utilities for sustainable development, public services for equitable access, and innovative pricing approaches for safe and efficient public data utilization.
Control over the overall price level will be strengthened through better synergy between price policies and fiscal, monetary, industrial, and employment policies. Additionally, efforts will be made to strengthen the price stability of important commodities.
The guideline will further optimize the market price supervision mechanism, create a transparent and predictable regulatory environment for business entities, and protect the legitimate rights and interests of consumers
明确价格改革方向——国家发展改革委有关负责人就《关于完善价格治理机制的意见》答记者问—新华社
In a Q&A with Xinhua, the National Development and Reform Commision explained why the opinion on price governance mechanisms has been released and what it’s meant to achieve. The whole opinion covers areas including price reform, price adjustment, price supervision and more. It’s designed to not only perfect how market prices are set but also ensure prices are kept at reasonable levels. The opinion is also meant to help create an open market with orderly competition, with a particular focus on areas including agricultural product prices, energy prices, utility prices and more. The NDRC said it will strengthen coordination among various departments and roll out future work in an orderly manner.
受权发布丨中共中央办公厅 国务院办公厅关于完善价格治理机制的意见-新华网
Full text of the Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Improving the Price Governance Mechanism
Excerpt:
I. General Requirements 一、总体要求
Adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide, thoroughly implement the spirit of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, fully and accurately implement the new development concept, adhere to the people-centered development philosophy, and maintain the general tone of seeking progress while maintaining stability. Focus on giving full play to the decisive role of the market in resource allocation and better playing the role of the government. Improve the market price formation mechanism, innovate the price guidance mechanism, perfect the price regulation mechanism, and optimize the market price supervision mechanism. Accelerate the construction of a high-level price governance mechanism that is effective in the market, moderate in regulation, and scientific in supervision. Improve resource allocation efficiency, enhance macroeconomic governance, and better serve the construction of Chinese-style modernization.
坚持以习近平新时代中国特色社会主义思想为指导，深入贯彻党的二十大和二十届二中、三中全会精神，完整准确全面贯彻新发展理念，坚持以人民为中心的发展思想，坚持稳中求进工作总基调，围绕充分发挥市场在资源配置中的决定性作用、更好发挥政府作用，健全市场价格形成机制，创新价格引导机制，完善价格调控机制，优化市场价格监管机制，加快构建市场有效、调控有度、监管科学的高水平价格治理机制，提高资源配置效率，提升宏观经济治理水平，更好服务中国式现代化建设。
In our work, we must: adhere to the direction of socialist market economy reform, let the market determine prices wherever possible, promote the efficient and smooth flow of advanced and high-quality production factors, and effectively serve the construction of a unified national market. Adhere to a systematic concept and comprehensive policies, coordinate domestic and international markets and resources, consider all links in the upstream and downstream, strengthen the coordination and linkage of reforms in various fields, achieve reasonable price formation, coordinated sharing of benefits, effective protection of people's livelihood, and efficient and transparent supervision. Adhere to problem orientation and reform innovation, focus on key areas and critical links, effectively solve the difficulties and blockages in price governance, make prices fully reflect market supply and demand, and enhance price flexibility. Adhere to the rule of law in pricing, improve price laws and regulations, enhance the scientific level of price governance, and regulate the pricing behavior of business entities.
工作中要做到：坚持社会主义市场经济改革方向，能由市场形成价格的都交给市场，促进先进优质生产要素高效顺畅流动，有效服务全国统一大市场建设。坚持系统观念、综合施策，统筹国内国际两个市场两种资源，兼顾上下游各环节，强化各领域改革协同联动，实现价格合理形成、利益协调共享、民生有效保障、监管高效透明。坚持问题导向、改革创新，聚焦重点领域和关键环节，有效破解价格治理难点堵点问题，使价格充分反映市场供求关系，增强价格反应灵活性。坚持依法治价，完善价格法律法规，提升价格治理科学化水平，规范经营主体价格行为。
II. Improve the Market Price Formation Mechanism to Promote Efficient Resource Allocation 二、健全促进资源高效配置的市场价格形成机制...
III. Innovate the Price Guidance Mechanism to Serve Key Areas of Development and Security 三、创新服务重点领域发展和安全的价格引导机制...
IV. Improve the Price Regulation Mechanism to Maintain Reasonable Price Levels 四、完善促进物价保持合理水平的价格调控机制...
V. Optimize the Transparent and Predictable Market Price Supervision Mechanism 五、优化透明可预期的市场价格监管机制...
六、VI. Strengthen the Capacity Building for Price Governance 强化价格治理基础能力建设...
七、VII. Strengthen Organizational Implementation 加强组织实施
6. More TikTok deal talk
Trump to Outline TikTok Deal Proposal, With ByteDance Retaining Stake — The Information
It’s unclear whether the Trump administration has approval for the proposed structure from the Chinese government. Under Trump’s proposal, TikTok America would be roughly 50% owned by new U.S. investors and license TikTok’s algorithm from ByteDance, the person said. Existing investors in ByteDance would have a roughly one-third stake in the new company, while ByteDance would retain a 19.9% stake.
Why no one is challenging Trump's executive order that keeps TikTok running | AP News
Trump’s actions so far violate the law, said Alan Rozenshtein, an associate law professor at the University of Minnesota. “The law does not permit the sort of ‘extension’ that Donald Trump has announced,” Rozenshtein said.
But both he and Kreps acknowledged a court challenge or other pushback is unlikely.
“Who’s the constituency? You have 170 million Americans using the app, and they’re pretty happy to see this continue to be available to them,” Kreps said.
Trump causes a new headache with tariffs-for-TikTok scheme - POLITICO
“The president is floating ridiculous proposals tying tariffs and TikTok together,” said a spokesperson for Sen. Ed Markey (D-Mass.), who led a charge pressing the administration for clarity on its deal plans last week — and who said he’d heard nothing in response.
“I want to see TikTok get sold. I want to see it sold now. I want to see it off the market,” said Rep. Rich McCormick (R-Ga.), a China hawk. He broadly defended Trump’s negotiating, but said, “Tariffs are a separate issue to me.”
Sen. Shelley Moore Capito (R-W.Va.), a member of Senate leadership, added her skepticism to a deal that combines TikTok and tariffs. “China is the one who’s hurting our products more than anybody,” she said “I wouldn’t trust them to hold up their end of the bargain.”
7. Nvidia upgrades H20 as PRC demand surges
Nvidia Faces Dilemma After Chinese Firms Rush to Order $16 Billion in New AI Chips — The Information
Chinese companies including ByteDance, Alibaba Group and Tencent Holdings have placed at least $16 billion in orders for Nvidia’s H20 server chips for running artificial intelligence in the first three months of the year, ahead of a potential U.S. ban on sales of the chip in China, according to two people with direct knowledge of the transactions.
The orders represent a sizable windfall for Nvidia—but only if it can deliver the chips in advance of the new restrictions. Nvidia generated $17 billion from sales in China in the 12 months that ended Jan. 26, 13% of its total revenue...
Nvidia recently upgraded the H20 by combining it with the same powerful, high-bandwidth memory chips it uses for the Blackwell system, according to the two people with direct knowledge of the H20 orders. Most Chinese companies have ordered the upgraded version, which bolsters performance for training and running AI, these people said.