The United States has reportedly initiated contact with China, expressing a desire to engage in discussions regarding President Donald Trump’s 145% tariffs, according to a social media account affiliated with Chinese state media. This development suggests a potential shift in Beijing’s stance towards negotiations, amidst escalating US-China trade tensions.
“The U.S. has proactively reached out to China through multiple channels, hoping to hold discussions on the tariff issue,” Yuyuan Tantian reported via its official Weibo social media account, citing anonymous sources.
US officials, including Treasury Secretary Scott Bessent and White House economic adviser Kevin Hassett, have also voiced optimism about the possibility of easing the China tariff dispute.
Kevin Hassett, in an interview with CNBC, revealed that “loose discussions all over both governments” have been taking place regarding the Trump tariffs. He highlighted China’s recent decision to exempt certain US goods from its retaliatory 125% tariffs as a positive indication. These exemptions, covering select pharmaceuticals, microchips, and jet engines, reported by Reuters, are seen as an effort to mitigate the impact of the Chinese retaliatory tariffs.
China’s Public Outrage and Quiet Tariff Adjustments
Despite Beijing’s public condemnation of the US tariffs, which it views as “bullying” and an attempt to hinder its economic growth, China has simultaneously taken steps to adjust its own tariff policies. While publicly denouncing the tariffs through its propaganda apparatus, China has also quietly compiled a list of US products exempt from Chinese tariffs.
Treasury Secretary Scott Bessent, speaking to Fox Business Network, emphasized the necessity of de-escalating the high 145% US tariffs and 125% Chinese tariffs as a prerequisite for meaningful negotiations.
He expressed confidence that China would seek a deal, outlining a “multi-step process” that would begin with de-escalation and eventually lead to a more comprehensive US-China trade agreement.
Bessent indicated that the initial phase of negotiations would involve revisiting China’s failure to fulfill purchase commitments under the 2020 “Phase 1” trade deal, which aimed to significantly increase Chinese purchases of US goods.
He also stated that “insidious” non-tariff trade barriers and intellectual property theft would be included in the tariff talks with China, suggesting that “everything is on the table for the economic relationship.”
Impact of High Tariffs on Chinese Exports and Job Losses
The significant impact of the Trump tariffs on Chinese exports is a key factor in the ongoing trade dispute. Nomura Securities has projected substantial job losses in China due to a potential decline in exports to the US. Bessent argued that China is under greater pressure due to its higher reliance on US exports.
Despite the reported US outreach, Beijing has maintained its public stance that it will not rush to the negotiation table. The Chinese Foreign Ministry has likened yielding to the Trump tariffs to “drinking poison.”
Yuyuan Tantian’s post reiterated that “before the U.S. takes any substantive action, China has no need to engage in talks with the U.S.” However, it also acknowledged that “if the U.S. wishes to initiate contact, there is no harm at this stage for China to engage.”
China’s Strategic Approach: Observation and Initiative
China’s current approach appears to be one of careful observation, aiming to “force out the U.S.’ true intentions” and “maintain the initiative in both negotiation and confrontation,” as reported by Yuyuan Tantian.
Meanwhile, conflicting reports have emerged regarding direct communication between the two countries’ leaders. President Trump claimed that Chinese President Xi Jinping had called him, while Beijing has denied any such talks. Chinese officials have consistently stated their openness to dialogue, provided it is based on “equality, respect and mutual benefit.”
The Global Times, a state-owned media outlet, has historically been a reliable source for information on China’s trade-related decisions. The current uncertainties surrounding direct talks and China’s potential response highlight the complex and evolving nature of the US-China trade relationship.
Trump’s recent statement about a “very good chance” of a deal, coupled with Xi Jinping’s call for officials to adapt to the changing international environment, suggests that the situation remains dynamic and subject to change.
