China is evaluating recent outreach by senior U.S. officials to initiate trade talks, according to a statement Friday from its commerce ministry, as tensions mount over steep tariffs that have rattled financial markets and placed pressure on global supply chains. While confirming that the U.S. has "reached out multiple times," Beijing reiterated its demand that all unilateral tariffs imposed by Washington be lifted as a prerequisite for meaningful negotiations.
"If the U.S. wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs," the commerce ministry stated. The remark follows a social media post from Yuyuan Tantian, a Chinese state-linked outlet, which reported that the U.S. had "proactively reached out to China through multiple channels" regarding the ongoing tariff standoff.
President Donald Trump has imposed tariffs of 145% on a broad range of Chinese goods this year. In response, China levied 125% duties on U.S. imports. Despite publicly aired hostilities, both governments have quietly implemented limited exemptions. Beijing recently created a list of U.S. goods-including pharmaceuticals, semiconductors, and aerospace components-to be excluded from its tariffs, Reuters reported.
Treasury Secretary Scott Bessent told Fox Business Network that a reduction in tariffs would be the first step in the negotiation process. "First, we need to de-escalate, and then over time, we will start focusing on a larger trade deal," he said, noting that "everything is on the table for the economic relationship."
Bessent pointed to the unfulfilled commitments of the 2020 "Phase 1" deal, which required China to increase purchases of U.S. goods by $200 billion over two years. The COVID-19 pandemic disrupted that agreement shortly after it was signed. He also raised concerns about "insidious" non-tariff barriers and continued intellectual property theft.
White House economic adviser Kevin Hassett told CNBC that China's easing of duties on select U.S. goods may be a signal of progress. He added there have been "loose discussions all over both governments," though no formal negotiations have been confirmed.
However, Chinese foreign ministry spokesperson Guo Jiakun stated, "As far as I know, there have been no consultations or negotiations between China and the U.S. on tariffs." State-affiliated voices have echoed that skepticism. "Before the U.S. takes any substantive action, China has no need to engage in talks," a post from Yuyuan Tantian said, citing anonymous experts.
Despite conflicting signals, both governments appear wary of ceding leverage. Trump told U.S. media last week that Chinese President Xi Jinping had called him to restart negotiations, but Beijing denied any such conversation occurred and accused Washington of "misleading the public."
