China Weighs U.S. Trade Overture Amid Signs of Possible Thaw

• China is reviewing U.S. proposals for trade talks to resolve the ongoing trade war, which has disrupted global markets, with U.S. officials reaching out multiple times recently.
• Beijing demands the U.S. remove its 145% tariffs on Chinese goods to show sincerity, warning that failure to do so undermines trust, while China has imposed 125% retaliatory tariffs.
• Both countries have granted exemptions on critical products to ease economic impacts, but progress in negotiations depends on the U.S. addressing China’s call to eliminate unilateral tariffs.

China’s commerce ministry announced on Friday that it is evaluating recent U.S. outreach to initiate trade negotiations, signaling a potential opportunity for the world’s two largest economies to address a trade war that has disrupted financial markets and dampened global economic growth. The ministry’s spokesperson noted that senior U.S. officials have made multiple attempts to engage through relevant parties, but China insists that Washington must demonstrate sincerity by removing all unilateral tariffs, which currently stand at 145% on Chinese imports. Beijing views the U.S. failure to lift these tariffs as a sign of lacking commitment, warning that it could further erode mutual trust and hinder productive dialogue.

The U.S.-China trade conflict, intensified by President Donald Trump’s imposition of 145% tariffs on Chinese goods this year, has prompted China to retaliate with 125% levies on U.S. imports, creating significant economic friction. Both nations have implemented exemptions on certain critical products to mitigate the impact, reflecting efforts to balance domestic needs with trade tensions. China’s demand for the U.S. to “correct its wrongdoings” by eliminating tariffs underscores Beijing’s position that negotiations must address these measures directly to restore confidence and facilitate meaningful progress. The ongoing trade war has ripple effects, influencing global supply chains, investor sentiment, and economic stability, with industries from technology to manufacturing facing heightened uncertainty. As China assesses the U.S. overtures, the prospect of talks hinges on Washington’s willingness to adjust its tariff policies, setting the stage for a critical juncture in bilateral economic relations.

h/t CNBC

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