On Friday, the Chinese Ministry of Commerce announced that Beijing is “evaluating” a proposal from Washington to engage in discussions regarding the 145% tariffs imposed by former President Donald Trump, while cautioning the U.S. against resorting to “threats and coercion”.
The two nations have been locked in a back-and-forth regarding tariffs, with neither side willing to make concessions or initiate negotiations to resolve the trade war that has unsettled global markets and disrupted supply chains.
The ministry stated that the United States reached out to China in an attempt to initiate talks on the tariffs, indicating that Beijing is open to dialogue, which might lead to a de-escalation of the trade conflict.
This announcement follows a day after a social media account linked to Chinese state media reported that Washington is seeking to start discussions, and just a week after Trump claimed that negotiations were already in progress, a statement China disputed.
In its announcement, the Ministry of Commerce noted that “the U.S. has recently made multiple attempts to communicate with China through relevant channels, expressing hope for discussions,” adding that Beijing is “assessing this situation”.
Furthermore, the statement declared, “Attempts to exploit negotiations as a pretext for intimidation and coercion will not succeed.”
The ministry emphasized that the U.S. must be prepared to take actions to rectify its “wrong” practices and revoke unilateral tariffs. Additionally, it mentioned that the U.S. should demonstrate “good faith” in negotiations.
China has repeatedly denied seeking negotiations with the U.S. regarding tariffs, appearing to rely on Washington’s initiative to call for talks.
Trump’s decision to impose stringent tariffs on China comes at a challenging time for the latter, which is grappling with deflation amid a slowdown in economic growth and a prolonged property crisis.
Beijing has explicitly expressed its ire over the tariffs, asserting that they reflect bullying tactics that cannot halt the growth of the world’s second-largest economy.
While utilizing its media apparatus to criticize the tariffs, Reuters reported that China has discreetly developed a list of U.S. manufactured products that would be exempt from the retaliatory 125% tariffs, including various pharmaceuticals, microchips, and jet engines.
On the U.S. side, officials, including Treasury Secretary Steven Mnuchin and White House Economic Advisor Kevin Hassett, have expressed hopes for achieving progress in easing trade tensions.
In an interview with Fox Business this week, Mnuchin stated, “I am confident in the desire of the Chinese to reach an agreement. As I said, this will be a multi-step process. First, we need to de-escalate tensions, then… we will start focusing on a broader trade agreement.”
On Wednesday, Trump remarked that he believes there is a “very good chance” for his administration to reach an agreement with China, shortly after President Xi Jinping encouraged officials to adapt to changes in the international environment without explicitly mentioning the U.S.