China Blames U.S. for Media Spat as 3 Pacts Remain Unfulfilled

China accused the U.S. of being the "initiator" of a bilateral media dispute Monday, saying Washington has failed to implement three agreements that were supposed to ease restrictions on Chinese journalists operating in America.

"The U.S. is the initiator of the China-U.S. media issue," Mao Ning, spokesperson for China's Foreign Ministry, said at a regular briefing in Beijing. "China has fully implemented the three agreements, providing visas and other conveniences for American journalists."

Since the three pacts were reached, China has granted visa facilitation to American reporters while Chinese media outlets in the U.S. have been labeled "foreign agents" and "foreign missions," Mao said. Chinese journalists face "severe restrictions" on their normal reporting rights, she added, without specifying which U.S. measures were at issue.

The dispute threatens to further fray ties between the world's two largest economies, which have already been strained by trade tariffs, technology export controls, and competing geopolitical ambitions. Any escalation could weigh on sentiment toward Chinese ADRs and Hong Kong-listed tech stocks, which are sensitive to cross-border friction.

Retaliation Risks Mount

The latest exchange follows the deportation of a New York Times journalist from China, whose residence permit was revoked after the outlet referred to Taiwan as a "country" in its reporting, according to Lin Jian, another Foreign Ministry spokesperson. The U.S. responded by revoking credentials of Xinhua News Agency journalists in what Washington called a reciprocal measure.

The three agreements referenced by Mao were reached in prior rounds of bilateral talks aimed at easing media access. China says it has delivered on all its commitments, including streamlining visa processes for American journalists. The U.S., by contrast, has designated Chinese state media outlets as "foreign missions" — a classification that imposes reporting restrictions and disclosure requirements.

The last time Washington imposed similar designations on foreign media — targeting Russia's RT and Sputnik in 2017 — those outlets saw their U.S. operations sharply curtailed within months. Chinese state media, including Xinhua, CGTN and China Daily, now face comparable constraints.

Market Implications

The media dispute adds to a growing list of friction points between Beijing and Washington. The U.S. currently maintains an average tariff rate of about 19 percent on Chinese goods, following multiple escalation rounds since 2018. The previous 25 percent tariff increase on $250 billion of Chinese imports in 2019 reduced bilateral trade by roughly 16 percent over the following 12 months, according to Census Bureau data.

Chinese ADRs listed in New York have already underperformed the broader U.S. market this year, with the KraneShares CSI China Internet ETF falling about 8 percent year-to-date. Hong Kong's Hang Seng Index has also been pressured by geopolitical headwinds, trading near 22,500 after losing roughly 4 percent over the past month.

Investors are watching for any further retaliatory measures from Beijing, which could include restrictions on U.S. media operations in China or broader actions targeting American technology and financial services firms. The next scheduled round of high-level bilateral talks has not yet been announced.

This article is for informational purposes only and does not constitute investment advice.