China may be warming to the possibility of holding talks with the U.S. on tariffs, following a statement from the Chinese Commerce Ministry on Friday.
“The U.S. has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China,” the ministry statement translated by Reuters said, adding that Beijing was “evaluating this.”
What observers are calling a “shift in tone” may present an off ramp for the world’s two largest economies to avoid an ongoing trade war that has impacted markets worldwide.
However, the ministry also warned that “attempting to use talks as a pretext to engage in coercion and extortion would not work.”
President Donald Trump’s decision to single Beijing out for import duties of 145 percent comes at a particularly difficult time for China, which is struggling with deflation due to sluggish economic growth and a prolonged property crisis, analysts say.
On Thursday, Treasury Secretary Scott Bessent told Fox Business’s Maria Bartiromo that Beijing appeared to be looking to reach an agreement with the U.S.
“I am confident that the Chinese will want to reach a deal. And as I said, this is going to be a multi-step process. First, we need to de-escalate. And then the over time we will start focusing on a larger trade deal,” Bessent told the Fox host.
On Wednesday, Trump said he believed there was a “very good chance” his administration could do a deal with China, hours after Chinese President Xi Jinping called on officials to take action to adjust to changes in the international environment, without explicitly mentioning the United States.
While President Trump announced sweeping global tariffs last month, he slapped a 145 percent tariff on Chinese imports. Beijing responded with a 125 percent tariff on U.S. imports.
Beijing has vowed to fight a trade war to the bitter end if needed, with a video posted on social media this week by its foreign ministry vowing to “never kneel down!”
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However, while Chinese officials have talked tough, China recently waived the tariff on a number of American-made products.
Reuters reported China has “quietly” created a list of U.S.-made products it will exempt from its retaliatory 125% tariffs – including select pharmaceuticals, microchips and jet engines.
But as Breitbart news reports, the United States appears to be ratcheting up the pressure. The U.S. 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.
There’s a lot of posturing going on, said one academic observer. Ja-Ian Chong of the National University of Singapore said it remained unclear whether any progress can be made, despite the mounting economic need for both sides to make a deal.
“Neither side wishes to look weak,” he said.
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