China says open to US trade talks offer but wants tariffs scrapped

BEIJING: China said on Friday that it is evaluating a US offer for negotiations on tariffs but insisted that Washington must be prepared to scrap levies that have roiled global markets and supply chains before talks can begin.  

Punishing US tariffs of up to 145% on many Chinese products came into force in April, while Beijing has responded with fresh 125% duties on imports from the United States.  

High-end tech goods such as smartphones, semiconductors, and computers have received a temporary reprieve from US tariffs.  

US President Donald Trump has repeatedly claimed that China has reached out for talks on tariffs and said this week that he believed there was a "very good chance we're going to make a deal."  

Beijing's commerce ministry stated on Friday that it was the US that had reached out and that it was "currently evaluating" the offer.  

However, it said that any talks would first require concessions from the US side.  

"If the US wants to talk, it should show its sincerity, be prepared to correct its wrong practices, and cancel unilateral tariffs," the ministry said.  

"In any possible dialogue or talks, if the US side does not correct its wrong unilateral tariff measures, it just means the US side is completely insincere and will further damage the mutual trust between the two sides," it added.  

"Saying one thing and doing another, or even attempting coercion and blackmail under the guise of talks, will not work," the commerce ministry said.  

Wu Xinbo, director of the Centre for American Studies at Shanghai's Fudan University, said that Beijing would likely play hardball.  

"Of course, the US hopes to start negotiations as soon as possible, but our attitude is: 'you must first take some action to show sincerity'," Wu told AFP.  

Once the US revokes tariffs on China, "we can discuss our legitimate concerns," such as Washington's worries about unbalanced bilateral trade and Beijing's concerns over US efforts to "suppress" its technological development, he said.  

Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.  

Beijing, in contrast, has vowed to fight a trade war to the bitter end if needed, with a video posted on social media this week by its foreign ministry vowing to "never kneel down!"  

"China's position has always been perfectly consistent," the commerce ministry said on Friday.  

"If it's fight, we will fight to the end; if it's talk, the door is wide open. The tariff war and trade war were unilaterally initiated by the US side."  

'Olive branch'  

China has acknowledged that global economic vicissitudes have strained its economy, long dependent on exports, with officials admitting that foreign-facing firms are facing difficulties.  

Data this week showed that factory activity shrank in April, with Beijing blaming a "sharp shift" in the global economy.  

On Wednesday, data showed that the US economy unexpectedly contracted in the first three months of the year following a surge in imports triggered by Donald Trump's tariff plans.  

Ja-Ian Chong of the National University of Singapore said it remains unclear whether any progress can be made, despite the mounting economic need for both sides to reach a deal.  

"Neither side wishes to look weak," he said.  

Analyst Stephen Innes at SPI Asset Management said Beijing's Friday comments represented the "first olive branch" in the gruelling trade war.  

"On paper, both capitals are waving détente flags," he wrote in a note.  

"But dig a layer deeper, and the path is still littered with landmines," he said.  

"China's pledge to fight 'to the end' wasn't retired—just shoved behind softer soundbites—and the 'cancel duties first' demand remains a non-starter for the White House."

By RSS/AFP