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No Active Trade Negotiations

China's Ministry of Commerce announced on Thursday that there are currently no active economic or trade negotiations with the United States. Spokesperson He Yadong emphasized that any reports suggesting progress in bilateral talks should be disregarded. He stated, "If the U.S. genuinely seeks to resolve the issue, it should cancel all unilateral measures imposed on China."​

This declaration comes despite recent indications from U.S. President Donald Trump and Treasury Secretary Scott Bessent about a potential easing of tensions. Earlier this month, the U.S. imposed a 145% tariff on Chinese goods, which Beijing countered with its own duties and increased restrictions on critical mineral exports to the U.S.​

China's Stance on Tariffs

Both the Ministry of Commerce and the Foreign Ministry reiterated China's position that meaningful negotiations would require the U.S. to treat China as an equal partner and to remove the imposed tariffs. Foreign Ministry Spokesperson Guo Jiakun confirmed that no talks are currently underway.​

Yue Su, principal economist for China at The Economist Intelligence Unit, noted, "China definitely wants to see the trade war deescalate, as it hurts both economies. However, due to the inconsistency of Trump's policies and the lack of clarity around what he actually wants, China's strategy has shifted from focusing on 'what you need' to 'what I need.'"​

Economic Implications

The ongoing trade tensions have broader economic implications. Several Wall Street banks have recently downgraded China's GDP outlook, citing the impact of the tariffs and escalating tensions with the U.S. The Commerce Ministry emphasized efforts to redirect goods intended for export to the domestic market, aiming to mitigate the effects of reduced international demand.​

Jianwei Xu, senior economist for Greater China at Natixis, commented, "From China's perspective, any meaningful negotiations will likely require the U.S. to reduce tariffs to the previous 20% or even lower level. But for the Trump administration, reducing tariffs too far could raise uncomfortable questions: What was the point of the confrontation if we end up back where we started?"​

Shift in Trade Partnerships

While the U.S. remains China's largest trading partner on a single-country basis, recent years have seen a shift in China's trade dynamics. Southeast Asia has surpassed the European Union to become China's largest trading partner on a regional basis, reflecting China's efforts to diversify its trade relationships amid ongoing tensions with the U.S.

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