China Considers US Trade Talks Amid Escalating Tensions
China has signaled a potential shift in its stance regarding trade talks with the United States, saying it is “currently assessing” proposals from Washington to begin negotiations. This marks a subtle but noteworthy change in Beijing’s approach, which has been firm and defiant amidst ongoing tensions with the US due to the trade war initiated under President Donald Trump.
A spokesperson for China’s Ministry of Commerce released a statement on Friday, noting that “the US has recently sent multiple messages to China through relevant parties, hoping to start talks.” They added, “China is currently evaluating this,” which opens the door for potential discussions after a period of deadlock.
A Softening in Beijing’s Position?
Beijing’s comments indicate a softening in its previously resolute position. Despite repeated assertions from Trump about being in talks with Chinese officials, Beijing has dismissed these claims in the past. Now, however, the rhetoric seems to have shifted, even as tensions continue over the trade war.
The spokesperson emphasized, however, that any future negotiations would hinge on several preconditions being met. “The tariff and trade war was unilaterally initiated by the US, and if it wants to negotiate, it must demonstrate genuine sincerity,” they said. “That includes being prepared to correct its wrongdoings and cancel its unilateral tariff hikes.”
They further stated, “China’s position remains consistent: If it’s a fight, we will see it through to the end. If it’s talk, the door is open.”
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The Toll of the Trade War
The ongoing trade conflict has been damaging to both economies, but China has particularly felt the strain. Trump’s tariff hikes — which soared as high as 145% earlier this month — have had a significant impact on Chinese businesses, making it increasingly difficult for them to trade with the United States. In retaliation, Beijing imposed tariffs on American imports, which have remained at 125%.
China’s export-driven economy has taken a serious hit, with manufacturing activity slowing down considerably. On Wednesday, the country reported that factory activity contracted in April, reaching its fastest decline in 16 months. This reflects the tangible damage caused by the high tariffs imposed by both sides.
Trump’s Shifting Tone
Amid these challenges, the US and China have engaged in several rounds of back-and-forth discussions. While Trump has previously dismissed the idea of negotiating without significant changes to the trade situation, his tone appears to have softened recently. Last week, he stated that tariffs on Chinese goods would “come down substantially” and assured that he would approach talks with a “very nice” attitude.
However, China has remained skeptical of Trump’s intentions. The Chinese government insists that any serious talks would require the US to remove all tariffs on Chinese goods before discussions could begin.
The Impact on Trade Flows
The effects of the ongoing trade war are already being felt in both countries’ economies. With Chinese factories idled and looking for new markets, imports from China to the United States are projected to drop sharply. According to the National Retail Federation, US imports are expected to fall by at least 20% year-over-year in the second half of 2025, with imports from China expected to decrease even further — by 75% to 80%, according to JP Morgan.
While some US retailers like Walmart and Target have resumed business with Chinese suppliers, many factories are still struggling to stay operational, pivoting to other markets, particularly in Europe.
What’s Next for US-China Trade?
Beijing’s recent comments show that it is willing to consider talks, but the path to resolution remains unclear. Both countries face immense pressure as their economies reel from the effects of the trade war. In the meantime, the world’s two largest economies are locked in a delicate dance, with neither side willing to make the first move toward de-escalation.
As both nations attempt to navigate this challenging trade landscape, it remains to be seen whether a resolution will be reached or if the tensions will continue to rise, with broader implications for global trade and economics.
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