China said it assesses the American openings to initiate commercial negotiations, potentially opening the way to the two world’s largest economies to start talks to resolve a trade war that has groaned financial markets and launched a veil on world economic activity.
High US officials have recently contacted “through parts concerned on several occasions”, in the hope of starting negotiations with China on prices, said a spokesperson for the Ministry of Commerce statement Friday.
While evaluating the possibility of starting any negotiation, the Chinese authorities have reiterated the request for Beijing for the United States to remove all unilateral prices. Not doing it would indicate “a lack of sincerity” of Washington and “compromise more mutual trust”, according to a translation of CNBC.
“If the United States wants to speak, he should show his sincerity and be ready to correct his bad practices and cancel unilateral prices,” said the statement.
US President Donald Trump thread the 145% prices on Chinese products imported this year, which prompted China to impose 125% reprisals. So far, the two parties have sought to blunt the economic impact of prices by granting exemptions on certain critical products.
The Yuan in Chinese offshore strengthened from 0.14% to 7.2665 compared to the US dollar following the declaration. While the land markets of China are closed for a vacation, Hong Kong Hang The index jumped 1.2% on the opening.
Beijing’s latest comments are following a wave of contradictory statements from the Trump administration and Chinese leadership on the question of whether discussions were underway, the two parties wishing to avoid being considered the first to retreat.
In addition, US Secretary of State Marco Rubio told the Hannity program in Fox News that “Chinese people wanted to meet and speak,” said Reuters, while indicating that such discussions will soon arise.
“We have to look at these exchanges of words with a pinch of salt,” said Tianchen Xu, principal economist at Economist Intelligence Unit, adding that both sides “are waiting for the other side to flash first”.
XU estimates that certain working level commitments may have already taken place or about to occur, which could lead to a drop in rate rates at “less devastating” levels from 40% to 50% in the coming quarters.
US officials, including the secretary of the Treasury Scott Bessent, said there could be a relaxation of tensions with China. Bessent, which largely supported the vast price system Interview with Fox Business Network Thursday That the American-Chinese prices at their current levels are “not durable on the Chinese side” and a “big problem” could be made between the two savings.
“Everything is on the table for the economic relationship. I am convinced that the Chinese will want to conclude an agreement. And as I said, it will be a process in several stages,” said Bessent. “First of all, we must defuse, then over time, we will start to focus on a more important commercial agreement.”
In an interview with CNBC Thursday, the White House economic advisor Kevin Hassett said that “there was a kind of loose discussion in the two governments”, adding that the recent relaxation of China’s tasks on certain American products indicated “that they were very close to making the kind of progress we need to advance the ball”.
Trump signed a decree exempting exempt from cars and parts imported from high levels on Wednesday, following the decline in prices on a range of electronic products earlier in April.
According to Reuters, China has also given pricing derogations on imports of certain American goods, as Pharmaceuticals, aerospace equipment, semiconductors and ethaneWhile looking for an opinion with companies on articles, they must be able to import without paying additional rights.
“Although in practice, the effective rates on both sides have dropped, the political position [from Beijing] has not changed, “said Dan Wang, Chinese director at Risk Consultancy, Eurasia Group, as Beijing clearly said the United States had to reduce all prices to participate in any significant commercial negotiations.
“China actively manages this decoupling, not taking bait in the United States,” she added.
