China stated on Friday that it is considering a US invitation for tariff discussions, but that before talks can start, Washington must be prepared to remove the duties that have shook global supply chains and markets.
Beijing has retaliated with new 125 percent levies on U.S. imports, while the United States imposed punishing tariffs in April that have reached 145 percent on some Chinese goods.
US tariffs have been lifted on high-end electronic products like computers, semiconductors, and smartphones.
US President Donald Trump stated this week that he thought there was a “very good chance we’re going to make a deal,” continuing his claims that China has approached him for discussions on the tariffs.
The US made the initial contact, according to Beijing’s trade ministry, which stated on Friday that it was “currently evaluating” the offer.
However, it stated that the US would have to make compromises before any negotiations could begin.
“If the United States wishes to engage in dialogue, it should demonstrate its sincerity by being willing to rectify its improper actions and remove unilateral tariffs,” the ministry stated.
“If the US side does not correct its incorrect unilateral tariff measures in any possible dialogue or talks, it simply means the US side is completely insincere and will further damage the mutual trust between the two sides,” the statement continued.
“It won’t work to say one thing and do another, or even try to use blackmail and coercion under the pretense of negotiations,” the ministry of commerce stated.
Beijing will probably play hardball, according to Wu Xinbo, head of the Centre for American Studies at Fudan University in Shanghai.
The US wants to begin talks as soon as feasible, of course, but our stance is that “you must first take some action to show sincerity,” Wu told AFP.
He stated that if the United States lifts its tariffs on China, “we can discuss our legitimate concerns,” including Beijing’s complaints about US attempts to “suppress” its technology growth and Washington’s concerns over uneven bilateral trade.
There is a 90-day window ending in July for dozens of nations to reach a deal with Washington and prevent higher, nation-specific fees.
Beijing, on the other hand, has promised to “never kneel down!” in a video released on social media this week by the foreign ministry, indicating that it will fight a trade war to the end if necessary.
“If it’s fight, we will fight to the end; if it’s talk, 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 vicissitudes have strained its economy, long dependent on exports, with officials admitting that foreign-facing firms are facing difficulties.
Data this week showed factory activity shrank in April, with Beijing blaming a “sharp shift” in the global economy.
And on Wednesday, data showed the US economy unexpectedly contracted in the first three months of the year Donald Trump’s tariff plans triggered an import surge.
The United States also ended tariff exemptions on Friday for goods shipped from China worth less than $800, a move which could have significant ramifications on consumers’ purchasing habits.
Ja-Ian Chong of the National University of Singapore said it remained unclear whether any progress could be made, despite the mounting economic need for both sides to make a deal.
“Neither side wishes to look weak,” he said.
Analyst Stephen Innes at SPI Asset Management said Beijing’s latest comments represented the “first olive branch” in the gruelling 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 said.
“China’s pledge to fight ‘to the end’ wasn’t retired — just shoved behind softer soundbites — and the ‘cancel duties first’ stick remains a non-starter for the White House.”
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