China vows to stay 'safe and promising land' for foreign investment

China on Monday slapped 34% tariffs on American imports in direct response to US President Donald Trump’s latest trade measures — but in a surprising move, Beijing also extended an olive branch to US companies, calling China a “promising land” for foreign investment.

Vice Commerce Minister Ling Ji, speaking to a panel of US business leaders including representatives from GE Healthcare, Medtronic, and Tesla, emphasized that the retaliatory tariffs were meant to “bring the United States back onto the right track” of multilateral trade.

He assured them their “legitimate rights and interests” would be protected despite the broader economic conflict.

China’s tit-for-tat measures came just days after Trump dubbed his tariff announcement “liberation day,” imposing similar 34% levies on a wide range of Chinese goods.

In response, Beijing also announced export controls on seven rare earth elements critical to high-tech industries — including gadolinium and yttrium, which are used in MRI machines and consumer electronics.

Ling Ji blamed the United States for triggering the escalation and urged American companies to help “maintain the stability of global supply chains and promote mutual cooperation.”

Despite the messaging, global markets reacted sharply. Asian stocks were hit hard, with Chinese e-commerce giant Alibaba dropping over 14%, JD.com shedding 13%, and Japan’s SoftBank plunging 10%. Sony also fell nearly 10% as investor confidence took a hit amid fears of prolonged trade tensions.

The US exported $144.6 billion worth of goods to China in 2024 — far less than the $439.7 billion it imported — with key exports in electronics, energy, and agriculture.

As Beijing tries to balance retaliation with reassurance, the global economy braces for more turbulence in the days ahead.