China has indicated it is considering a US proposal for tariff negotiations, but emphasized that Washington must be prepared to eliminate the levies that are disrupting global markets and supply chains before discussions can commence.
Severe US tariffs that have escalated to 145% on numerous Chinese products took effect in April, while Beijing has retaliated with new 125% duties on imports from the United States.
High-end technology items like smartphones, semiconductors, and computers have temporarily avoided US tariffs.
US President Donald Trump has consistently asserted that China has reached out for tariff negotiations and mentioned this week that he believes there is a “very good chance we’re going to make a deal”.
Last month, Donald Trump detailed a series of so-called reciprocal tariffs, significantly impacting China.
However, China stated that any negotiations would first require compromises from the US.
“If the US is looking to engage in talks, it must demonstrate its sincerity, be ready to rectify its erroneous practices, and eliminate unilateral tariffs,” the ministry asserted.
“In any potential dialogue, if the US does not amend its unilateral tariff actions, it merely reflects insincerity and will further harm mutual trust,” it added.
“Saying one thing while doing another, or attempting coercion and intimidation under the pretense of discussions will be ineffective,” the commerce ministry remarked.
Wu Xinbo, director of the Center for American Studies at Shanghai’s Fudan University, suggested that Beijing would likely adopt a tough stance.
“Of course the US desires to initiate negotiations promptly, but our position is: ‘you must first take some actions to exhibit sincerity’,” Mr. Wu stated.
Once the US lifts tariffs on China, “we can address our valid concerns,” such as Washington’s issues regarding trade imbalances and Beijing’s grievances about US efforts to “stifle” its technological growth, he continued.
Numerous countries are facing a 90-day deadline expiring in July to reach an agreement with Washington to avoid increased, specific tariffs.
In contrast, Beijing has pledged to withstand a trade war to the end if necessary, with a video shared on social media this week by its foreign ministry declaring, “we will never kneel down!”
Analysts have suggested that Beijing’s remarks may signify the ‘first olive branch’ in the ongoing trade conflict.
“China’s stance has consistently been clear,” the commerce ministry stated.
“If it’s a fight, we will fight until the end; if it’s dialogue, the door remains open. The tariff and trade wars were initiated unilaterally by the US,” it concluded.
‘Olive branch’
China has recognized that global economic fluctuations have impacted its economy, which has long relied on exports, with officials acknowledging that foreign-facing businesses are encountering challenges.
Recent data revealed that factory activity dipped in April, with Beijing attributing this to a “sharp shift” in the global economy.
Additionally, data released on Wednesday indicated that the US economy unexpectedly shrank in the first quarter of the year due to Trump’s tariff strategies that led to a surge in imports.
Ja-Ian Chong from the National University of Singapore stated it’s uncertain if any progress can be achieved, despite increasing economic pressure on both sides to reach an agreement.
“Neither side wants to appear weak,” he noted.
Stephen Innes, an analyst at SPI Asset Management, commented that Beijing’s statements represented the “first olive branch” in the taxing trade conflict.
“On the surface, both capitals are waving flags of détente,” he remarked in a note.
“However, if you delve deeper, the road ahead is still fraught with challenges,” he added.
“China’s vow to fight ‘to the end’ has not been dismissed; it’s merely been overshadowed by softer rhetoric—while the demand to ‘cancel duties first’ remains unfeasible for the White House.”
