Photo: Dan Sandoval / AFP
China has strongly denied reports of allegedly active negotiations with the US to reduce trade tariffs. This week, the White House hinted at a possible easing of tensions, but Beijing has taken a tough stance. This was reported by CNBC.
He Yadong, a representative of the Ministry of Commerce of the People’s Republic of China, said:
“At the moment, there are absolutely no negotiations on the economy and trade between China and the United States. All statements about progress in the negotiations should be rejected.”
The Chinese side stressed that the only condition for a constructive dialogue to begin is the cancellation of all unilateral tariffs imposed by the United States.
What preceded it?
- Earlier this month, the US imposed a 145% duty on Chinese goods.
- China’s response:
- imposed its own duties;
- restricted exports of critical minerals to the US;
- has threatened countermeasures against
Although US President Donald Trump and Treasury Secretary Scott Bessent have hinted at a possible easing of policy this week, China has not officially recognised any signs of de-escalation.
Chinese Foreign Ministry officials and analysts confirm this: Beijing has changed its strategy from “what you need” to “what we need”, focusing on national interests and economic autonomy.
“It’s a ‘whatever it takes’ moment for China,” said Yue Su, chief China economist at The Economist Intelligence Unit, “China may take an even tougher stance if the US continues to escalate.”
Consequences.
- Global stock markets are reacting erratically.
- Major Wall Street banks have lowered their forecasts for China’s GDP growth.
- Chinese manufacturers are reorienting themselves towards the domestic market.
Analysts also note: Beijing is ready to negotiate only if duties are reduced to 20% or lower. But for the United States, this raises political risks – why was there a confrontation?
Global impact
- The United States remains China’s largest trading partner by country, but Southeast Asia has already overtaken the EU in regional trade with China.
- Europe and other countries are closely monitoring the situation, trying to avoid secondary sanctions and the impact on their economies.
