Beijing, China — The Chinese government is currently assessing a proposal from the United States to initiate trade discussions, following conflicting reports about the status of negotiations. The announcement from China’s commerce ministry on Friday comes after former President Donald Trump alleged that talks had already commenced.
Officials from the ministry noted that the U.S. has expressed a desire to engage in dialogue through various channels. On Thursday, prominent voices within China indicated a willingness to consider negotiations, contributing to a surge in market activity both in the U.S. and Europe. Nationalist commentator Ren Yi, better known as Chairman Rabbit, stated that U.S. entities have proactively sought discussions regarding economic and trade matters.
However, China has countered assertions from U.S. officials claiming that negotiations are already in progress or that Beijing had taken the initiative. The foreign ministry criticized the U.S. for what it called “misleading the public” regarding the situation. Ren suggested that if China were to concede and approach the U.S., it would not necessitate the U.S. reaching out to China.
The commerce ministry emphasized that the United States must demonstrate “sincerity” in negotiations and warned against tactics perceived as coercive or extortionate. Over the past months, China has repeatedly accused the U.S. of adopting a bullying stance in trade relations. The ongoing trade war, reignited in April by Trump’s imposition of new tariffs, has led to steep tariffs on Chinese imports, reaching as high as 145%, while Beijing’s retaliatory measures have escalated to 125%.
Despite both nations’ reluctance to appear as though they are conceding, they have been making exceptions to their respective tariffs in an effort to mitigate the impact of the ongoing trade conflict, which poses a risk to the global economy. Recent statistics indicate a slowdown in Chinese factory activity, attributed to significant shifts in the international trade landscape. In addressing these challenges, Chinese leader Xi Jinping has urged officials to adapt to changing external conditions.
Notably, the atmosphere of propaganda from Chinese state media has grown more assertive, with recent videos accusing the U.S. of aggressive tactics. One such video described the consequences of capitulating to U.S. pressure as akin to “drinking poison.”
In the U.S., a new executive order aimed at closing a multibillion-dollar tariff loophole took effect, impacting how low-value goods, particularly from China, are shipped without customs fees. The termination of the de minimis exemption is expected to have significant ramifications for Chinese exporters.
Despite the tensions, some analysts maintain that both nations ultimately desire an agreement. U.S. Treasury Secretary stated that it is essential to first de-escalate tensions before embarking on a broader trade resolution.