In a major breakthrough in the intensifying US-China trade war, Beijing has indicated a readiness to go back to the negotiating table subject to certain conditions. This follows after President Donald Trump slapped comprehensive tariffs of up to 145% on Chinese imports, further ratcheting up economic tensions between the two giants.
China has established certain conditions for returning to the negotiating table, as per Bloomberg. These involve the US projecting “respect” towards China, being more consistent in its trade approach, and addressing Chinese grievances regarding US sanctions and Taiwan, and nominating a Trump-approved point man to head bilateral talks. This negotiator would assist in drawing up a full-scale trade deal that can be inked at some future sit-down between President Trump and Chinese President Xi Jinping.
In response to US tariff increases, China has put in place its own high tariffs up to 125% and halted exports of rare earth elements and magnets, essential materials in electronics, defense, and auto production. Since China has a virtual monopoly on these strategic materials, the freezing of exports is likely to affect supply chains around the world, particularly in heavily Chinese-dependent countries.
Even as China made a move towards talking, US officials seem unruffled. Treasury Secretary Scott Bessent informed Yahoo Finance that the administration is giving more importance to trade negotiations with 14 other countries, as such relegating China temporarily. “Let’s put China aside,” Bessent said, in the process intimating that the US might achieve significant progress elsewhere before going back to talking to Beijing.
White House Press Secretary Karoline Leavitt reiterated this position, saying, “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them.”
The latest news represents a turning point in the trade war, with both sides considering their next step in a high-stakes economic battle.
