Are Trade Negotiations Truly Underway? Trump Insists “They Are Ongoing,” While Beijing Firmly Denies It.
U.S.-China Trade War Reignites
The U.S.-China trade war has once again stirred up waves. Former U.S. President Donald Trump recently stated that the two sides are engaged in trade negotiations, but the Chinese government immediately rebutted, emphasizing that “there are currently no economic or trade negotiations at all.” This diplomatic labyrinth of “who speaks the truth” has drawn significant attention from all sectors.
Trump: We Had a Meeting This Morning!
On Thursday, U.S. President Trump told the media that trade talks with China are still ongoing. He vaguely stated, “They had a meeting this morning… it doesn’t matter who ‘they’ are; perhaps we will announce it later, but we are indeed having meetings with China.” This statement seems to convey that the U.S. and China are secretly negotiating, but it has also raised doubts externally. If meetings are indeed taking place, why are the two sides’ statements so inconsistent?
China’s Firm Denial: No Negotiations and No Acceptance of Unilateral Pressure
In response to Trump’s remarks, China’s Ministry of Commerce spokesperson He Yadong explicitly denied this claim, stating: “There are currently no negotiations between China and the U.S. regarding economic and trade matters.” He added, “All statements regarding negotiation progress should be viewed as false.” Furthermore, He emphasized that China’s fundamental position is that if the U.S. genuinely wants to resolve issues, it must “lift all unilateral sanctions.”
China’s Foreign Ministry spokesperson Guo Jikuan also reiterated this stance on Thursday afternoon, stating that China is willing to engage in dialogue, but on the condition that “China is treated equally.”
Both Sides Impose Tariffs, Trade War Rekindles
Earlier this week, Trump and newly appointed Treasury Secretary Scott Bessent both sent signals of reconciliation with China. However, in reality, the White House recently imposed tariffs of up to 145% on Chinese goods. In response, Beijing not only enacted retaliatory tariffs but also tightened export restrictions on rare earth and key minerals, further escalating bilateral tensions.
China has also warned any country that may “sacrifice Chinese interests” to cooperate with the U.S. that it may take retaliatory measures.
Economists Observe: Shift in China’s Strategy
Yue Su, Chief Economist for Greater China at The Economist Intelligence Unit, pointed out that China’s negotiation strategy has shifted. “In the past, China was more focused on the other party’s needs, but now they are more concentrated on what they want.” She believes this reflects China’s distrust of the Trump administration’s inconsistent policies and vague stance.
Su further added, “This is a moment when China may adopt a ‘whatever it takes’ attitude. If the U.S. continues to escalate pressure, it is possible that China will become even tougher.”
Impact on Businesses and Markets Begins to Emerge
Amid this dual offensive of rhetoric and tariffs, several major banks on Wall Street have downgraded their GDP growth forecasts for China this year. The Chinese Ministry of Commerce also stated that it is working to help businesses redirect products originally scheduled for export to the domestic market to alleviate pressure.
Jianwei Xu, Senior Economist for Greater China at Natixis, noted that if the U.S. wants to bring China back to the negotiating table, it may need to lower tariffs to the original 20% or even lower. However, for Trump, such concessions may provoke external doubts: “If we end up back at square one, then what was the purpose of this trade war?”
Geoeconomic Landscape Quietly Changes
Although the U.S. remains China’s largest single-country trading partner, in regional terms, Southeast Asia has surpassed the European Union in recent years to become China’s largest regional trading partner. This trend indicates that China is actively seeking to diversify its export markets to reduce dependence on the U.S.
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