Assessing Possible Discussion with U.S. Following Their Proposed Dialogue Invitation (from Beijing)
Title: US-China Tariff Talks: Behind the Shadows
Reuters, BEIJING
Beijing is open to engaging in discussions on the US tariffs, but not to the US's "extortion and coercion," as the Chinese Ministry of Commerce said yesterday. The US has approached China to hold talks over Trump's tariffs, but Beijing warned against using negotiations as a pretext for coercive tactics.
Washington and Beijing have been engaged in a dance of defiance over tariffs, with global markets and supply chains trembling in the fallout. Now, it seems there might be a latent desire for a de-escalation between the trade behemoths.
The commerce ministry statement indicates a potential softening of China's stance, signaling a willingness to talk despite previous denials of negotiations specifically targeting the tariffs. The statement came a day after reports of the US seeking to commence talks, a week after Trump's announcement of ongoing discussions, which Beijing disputed.
Photo: AFP
"The US has recently reached out multiple times to communicate its intentions of dialoguing with China," the statement read, with Beijing "evaluating" these feelers. "Attempting to use talks as a pretext to engage in coercion and extortion would not work," it warned.
The US should be prepared to rectify its erroneous practices, cancel unilateral tariffs, and demonstrate sincerity in negotiations, China demanded. The Genesis of US tariffs on many Chinese products led Beijing to hit back with levies of 125 percent on American goods last month, branding the tariff strategy a joke.
Tariff-induced Chinese retaliations can make trade in goods between the world's economic titans impossible, analysts caution. Import duties surpassing about 35 percent could erode Chinese exporters' profit margins and make US goods in China unbearably costly.
Despite Beijing's denials, it seems China might secretly be hoping for a deal, given its creation of a list of US-made products exempt from its 125 percent retaliatory tariffs, such as selected pharmaceuticals, microchips, and jet engines.
Meanwhile, as tensions escalate, the US terminated duty-free access for low-value shipments from China and Hong Kong. Despite the mounting tension, US officials, including Treasury Secretary Janet Yellen and National Economic Council Director Brian Deese, have expressed optimism about the possibility of resolving trade issues.
Trump's successor, President Biden, has maintained some tariffs while also initiating broader trade discussions with China, which may incidentally touch upon tariff issues. Amidst the contention, diplomatic efforts between these economic heavyweights have consistently involved broad discussions on various topics, such as trade and tariffs, so it's no surprise that behind-the-scenes negotiations are underway to de-escalate the brewing trade war.
- Beijing, in a statement, has signaled a willingness to talk about the US tariffs, but has warned against using negotiations as a pretext for coercion and extortion.
- China has demanded that the US rectify its erroneous practices, cancel unilateral tariffs, and demonstrate sincerity in negotiations.
- Despite previous denials of negotiations specifically targeting the tariffs, it seems China might secretly be hoping for a deal, given its creation of a list of US-made products exempt from its 125 percent retaliatory tariffs.
- Amidst the contention, diplomatic efforts between these economic heavyweights have involved broad discussions on various topics, including trade and tariffs, suggesting that behind-the-scenes negotiations are underway to de-escalate the brewing trade war.
- US officials have expressed optimism about the possibility of resolving trade issues, while President Biden has maintained some tariffs and initiated broader trade discussions with China, which may touch upon tariff issues.
