Beijing: China has urged the United States to fully revoke all unilateral tariffs and has firmly denied reports of ongoing trade discussions, maintaining a stern stance despite recent softer comments from President Donald Trump.
Commerce Ministry spokesman He Yadong stated at a Thursday press briefing, "The US should heed rational international voices and those within its own borders and thoroughly remove all unilateral tariffs imposed on China if it genuinely seeks resolution."
He also dismissed recent speculation about any advancement in bilateral talks as "baseless," calling upon the US to demonstrate sincerity if genuine negotiations are desired.
These statements follow President Trump's recent suggestion of possibly lowering tariffs on Chinese goods, currently averaging around 145%. Trump remarked earlier this week that "everything’s active," indicating openness to re-engagement, although substantive dialogue has yet to recommence.
Chinese President Xi Jinping has reportedly resisted direct communication with Trump since his return to office, outlining several preconditions for renewed negotiations, including a clear and respectful US approach, a consistent policy stance, and addressing key issues such as American sanctions and Taiwan.
Broader Implications
Trade tensions are noticeably spilling into broader bilateral relationships, affecting even military cooperation. China's Defense Ministry criticized certain US perspectives as "biased," alleging they obstruct meaningful military engagement between the two nations.
Economic Implications and Policy Response
Attention is now shifting to Beijing’s potential policy responses to shield China’s economy, especially its export sector, which significantly contributed to 40% of economic growth in the first quarter. Analysts speculate Beijing may soon introduce targeted stimulus measures.
Larry Hu, Chief China Economist at Macquarie Group, cautioned that Beijing might remain cautious with stimulus announcements, given the flexibility to act later if needed. China’s first-quarter growth of 5.4% exceeds its 2025 annual target of approximately 5%, potentially allowing policymakers room to maneuver carefully.
Global Economic Concerns
Highlighting global implications, Pan Gongsheng, Governor of the People's Bank of China, emphasized during a G20 meeting in Washington that continued trade frictions threaten international economic trust, urging enhanced cooperation to avoid a detrimental cycle of "high friction and low trust."
Pan’s remarks come amid the International Monetary Fund and World Bank annual meetings, providing potential opportunities for dialogue between Chinese and US economic officials. However, no bilateral talks have been officially scheduled despite the high stakes involved in resolving ongoing tariff disputes.
