Beijing is currently “evaluating” an offer from Washington regarding talks over the substantial 145% tariffs imposed by US President Donald Trump. The Commerce Ministry of China has cautioned the United States against engaging in “extortion and coercion,” highlighting the complexities of negotiation.
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Both Washington and Beijing seem entangled in a high-stakes game over tariffs, with neither side willing to appear submissive or be the first to initiate discussions amid a trade war that has unsettled global markets and disrupted supply chains.
The Commerce Ministry confirmed that the United States has reached out to China with a proposal for negotiations concerning Trump’s tariffs. This gesture signals a potential opening for dialogue that could lead to de-escalation of the ongoing trade tensions.
This news comes just a day after a social media account affiliated with Chinese state media indicated that Washington was eager to spark discussions. Additionally, it follows Trump’s recent claims that talks had already commenced, a statement Beijing has since denied.
In a month-old outline, Donald Trump introduced a series of so-called reciprocal tariffs, which have significantly impacted China.
“Attempting to use talks as a pretext for coercion and extortion will not succeed,” the ministry asserted.
Moreover, the US must be ready to rectify “erroneous practices” and rescind unilateral tariffs, according to the Commerce Ministry, which emphasized that Washington needs to demonstrate “sincerity” in its approach to negotiations.
China has consistently maintained that it is not actively seeking a resolution to the tariffs imposed by the United States, seemingly counting on Washington to make the first move.
Trump’s imposition of hefty import duties on Beijing comes at a particularly challenging time for China, which faces deflation as a result of sluggish economic growth and a protracted property crisis.
The Chinese government has expressed its discontent regarding the tariffs, calling them a form of bullying that will not deter the growth of the world’s second-largest economy.
In response to the tariffs, China has not only utilized its state propaganda to counteract the negative publicity but has also discreetly compiled a list of US products that will be exempt from its retaliatory 125% tariffs. This list may include essential items such as pharmaceuticals, microchips, and jet engines, according to reports by Reuters.
Officials from the US, including Treasury Secretary Scott Bessent and White House economic advisor Kevin Hassett, have voiced optimism regarding potential progress in alleviating trade tensions. In an interview with Fox Business Network, Bessent stated, “I am confident that the Chinese will want to reach a deal. As I have indicated, this will be a multi-step process. First, we need to de-escalate, and then we will begin to focus on a more extensive trade agreement.”
In another statement, Trump conveyed a hopeful outlook, asserting that there is a “very good chance” his administration could reach an agreement with China. This sentiment was echoed shortly after Chinese President Xi Jinping encouraged officials to adapt to changes in the global environment without specifically mentioning the United States.
Wu Xinbo, director of the Center for American Studies at Shanghai’s Fudan University, suggested that China is likely to adopt a tough stance in negotiations. He remarked, “Of course the US hopes to begin negotiations as soon as possible, but our position is clear: ‘you must first take action to show sincerity.'” Once the US revokes tariffs on China, he indicated, “we can then discuss our legitimate concerns,” which include American worries about an unbalanced bilateral trade relationship as well as Beijing’s frustrations regarding US actions perceived as attempts to “suppress” its technological advancements.
With many countries facing a 90-day deadline expiring in July to finalize agreements with Washington and avoid heightened, country-specific rates, the situation remains tense. In response, Beijing has asserted its commitment to fiercely defend its economic interests, claiming it will not relent even in the face of adversity, as indicated by a social media video from its foreign ministry stating they will “never kneel down!”
China’s Commerce Ministry reiterated, “Our stance has always been clear. If it’s a fight, we will fight to the end; if it’s dialogue, the door is wide open. The tariff and trade wars were initiated unilaterally by the US.” Analysts have noted that such comments signify the “first olive branch” in what has been a grueling trade conflict.
Chinese officials have acknowledged that global economic fluctuations have strained their economy, which has long relied heavily on exports. Recent data indicated a contraction in factory activity for April, with Beijing attributing this decline to a “sharp shift” in the global economic landscape.
Wednesday’s data revealed an unexpected contraction in the US economy during the first quarter of the year, a byproduct of Trump’s tariff policies spurring an import surge.
Ja-Ian Chong, from the National University of Singapore, remarked on the uncertainty surrounding potential progress, despite the growing economic need for both sides to strike an agreement. “Neither party desires to appear weak,” he commented.
Stephen Innes from SPI Asset Management contributed to the dialogue by stating that Beijing’s recent statements suggest a notable shift, labeling them as the “first olive branch” extended in the enduring trade war. He stated, “On paper, both capitals seem to be waving flags of détente. However, a deeper look reveals a path still fraught with challenges.” He cautioned that China’s declaration to fight “to the end” remains, albeit overshadowed by softer rhetoric, and the demand to revoke duties first remains a sticking point for the White House.
In summary, as both nations navigate these turbulent waters, the future remains uncertain, with each party poised to advocate for their interests while cautiously considering the possibility of negotiation.
Edited By Ali Musa
Axadle Times International–Monitoring.
