China stated on Friday that it is assessing a US proposal for tariff negotiations but insisted that Washington must be prepared to eliminate the levies that have disrupted global markets and supply chains before any discussions can commence.
Punitive US tariffs, which have reached as high as 145% on numerous Chinese goods, took effect in April, while Beijing has responded with new 25% duties on imports from the United States.
High-end technology products, including smartphones, semiconductors, and computers, have received a temporary exemption from US tariffs.
US President Donald Trump has repeatedly asserted that China has approached them for talks regarding the tariffs, and this week he expressed his belief that there is a “very good chance we’re going to make a deal.”
Beijing’s commerce ministry announced on Friday that it was the US that had initiated contact and that it is “currently evaluating” the offer.
However, it emphasized that any talks would necessitate prior concessions from the US side.
“If the US wants to talk, it should demonstrate its sincerity to do so, be prepared to correct its wrong practices, and cancel unilateral tariffs,” the ministry stated.
It further added, “In any potential dialogue or talks, if the US side does not rectify its incorrect unilateral tariff measures, it simply signifies that the US side is entirely insincere and will further damage the mutual trust between the two sides.”
“Saying one thing and doing another, or even attempting coercion and blackmail under the guise of talks, will not work,” the commerce ministry asserted.
Wu Xinbo, the director of the Center for American Studies at Shanghai’s Fudan University, suggested that Beijing would likely adopt a firm stance.
“Of course, the US hopes to begin negotiations as soon as possible, but our attitude is: ‘you must first take some action to show sincerity’,” Wu told AFP.
Once the US revokes tariffs on China, “we can discuss our legitimate concerns,” such as Washington’s worries about the imbalanced bilateral trade and Beijing’s grievances over US efforts to “suppress” its technological development, he explained.
Dozens of countries face a 90-day deadline expiring in July to reach an agreement with Washington and avoid higher, country-specific rates.
In contrast, Beijing has vowed to fight a trade war to the very end if necessary, with a video posted on social media this week by its foreign ministry proclaiming they will “never kneel down!”
“China’s position has always been perfectly consistent,” the commerce ministry stated on Friday. “If it’s a fight, we will fight to the end; if it’s talks, the door is wide open. The tariff war and trade war were unilaterally initiated by the US side.”
Olive Branch
China has acknowledged that global economic fluctuations have strained its economy, which has long relied on exports, with officials admitting that export-oriented firms are facing difficulties.
Data released this week indicated that factory activity contracted in April, with Beijing attributing this to a “sharp shift” in the global economy.
Furthermore, data from Wednesday revealed that the US economy unexpectedly shrank in the first three months of the year, a period during which President Trump’s tariff plans triggered a surge in imports.
The United States also ended tariff exemptions on Friday for goods shipped from China valued at less than $800, a move that could have significant repercussions on consumers’ purchasing habits.
Ja-Ian Chong of the National University of Singapore commented that it remains uncertain whether any progress can be made, despite the growing economic need for both sides to reach a deal.
“Neither side wishes to appear weak,” he said.
Analyst Stephen Innes at SPI Asset Management described Beijing’s latest remarks as the “first olive branch” in the grueling trade war.
“On paper, both capitals are waving detente flags,” he wrote in a note.
“But dig a layer deeper, and the path is still littered with landmines,” he cautioned. “China’s pledge to fight ‘to the end’ wasn’t retracted — just pushed behind softer soundbites — and the ‘cancel duties first’ demand remains a non-starter for the White House.”
