In a potential easing of tensions in the ongoing trade war between China and the United States, Beijing announced on Friday that it is contemplating talks with the Trump administration following multiple overtures from senior U.S. officials.
China’s Commerce Ministry stated that it is “evaluating” the U.S. proposal for negotiations, but emphasized that Beijing's position remains unchanged: negotiations will only commence if the U.S. first cancels its tariffs on Chinese goods.
The ministry remarked, “If the United States does not correct its wrong unilateral tariff measures, it means that the United States has no sincerity at all and will further damage the mutual trust between the two sides.”
This indication from China comes amid reports that the tariffs have adversely affected Chinese producers, with an official manufacturing report for April revealing the sharpest monthly slowdown in over a year.
The trade dispute escalated last month when President Trump increased tariffs on Chinese goods to a minimum of 145 percent, while excluding China from a temporary 90-day pause on tariffs granted to other countries. In retaliation, China imposed high tariffs on U.S. goods and restricted American companies' operations in China, along with limiting exports of essential minerals needed for U.S. manufacturing.
The conflict has created significant volatility in global markets and has intensified the economic decoupling between the two largest economies. Countries worldwide are increasingly pressured to choose sides, with the Trump administration urging U.S. allies to limit Chinese imports, while Beijing has threatened repercussions against compliant nations.
Details regarding which U.S. and Chinese officials have been communicating about potential negotiations remain unclear. Analysts note that the two countries have differing approaches to negotiations; Trump prefers direct discussions with Xi Jinping, while Chinese officials typically favor working out the specifics before a leaders' meeting.
Wu Xinbo, dean of the Institute of International Studies at Fudan University, stated, “The key now is that China hopes that the United States will give a clear signal that it is sincere in negotiating, and then it can move from this kind of working contact to formal negotiations. China has kicked the ball to the United States.”
Chinese officials are reportedly wary of potential shifts in U.S. policy, particularly concerns that Trump may reverse agreements or create confrontational situations, reminiscent of interactions with foreign leaders in the past.
As the trade conflict looms, Chinese state propaganda has intensified, urging citizens to resist U.S. pressure. Beijing is banking on the idea that the Trump administration will eventually ease its stance due to increasing political and economic pressures domestically, as recent polls indicate dissatisfaction among Americans regarding Trump's economic management.
In recognition of U.S. reliance on Chinese manufacturing, the Trump administration has exempted certain Chinese electronics from tariffs, although this measure may be temporary. Additionally, Trump recently signed executive orders to reduce tariffs on car manufacturers.
China is also contemplating exemptions for specific categories from its 125 percent tariffs on U.S. goods, including certain semiconductors and essential healthcare products.
However, Xi Jinping’s ability to negotiate is constrained by his nationalistic image and the need to project strength against perceived U.S. bullying, coupled with challenges in the Chinese economy stemming from a property crisis and low consumer confidence. Despite a shrinking share of overall exports, the U.S. remains China's largest market, accounting for nearly 15 percent.
It remains uncertain what type of trade agreement would satisfy both Trump and Xi, especially given that China recorded a nearly $300 billion trade surplus with the U.S. last year, a significant gap that is challenging to address. Previous negotiations aimed at resolving this imbalance faltered, partly due to the impacts of the Covid pandemic.