HONG KONG — In a direct rebuttal to President Donald Trump’s assertions, China stated on Thursday that there are no active discussions between Beijing and Washington regarding resolutions to the escalating trade war.
While Trump claimed on Wednesday that the United States and China are “actively” communicating, Guo Jiakun, a spokesperson for China’s foreign ministry, asserted at a Beijing briefing that such claims are unfounded, emphasizing that no consultations or negotiations concerning tariffs have taken place between the nations.
Guo further stated, “If it’s a fight, we will fight to the end” while maintaining that China is open to negotiations.
Under the current circumstances, tariffs imposed by Trump on China have soared to a staggering 145%, which is notably higher than those on any other country. In response, Beijing retaliated, resulting in a total tariff level of 125% on U.S. goods, creating a situation akin to a mutual trade embargo.
This ongoing trade conflict has raised concerns about a global recession, triggering market volatility reminiscent of previous trade tensions. Initial signs of a possible thaw in relations surfaced on Wednesday, as the Trump administration indicated that it was exploring options for reducing tariffs with China.
However, confusion ensued as Trump and Treasury Secretary Scott Bessent presented contradictory accounts of the negotiation status on the same day. While Bessent noted that “both sides are waiting to speak to the other,” he refrained from offering specific details.
In contrast, Trump asserted that there are direct contacts regarding trade between the U.S. and China occurring “every day.”
A senior U.S. official disclosed to NBC News that communications between the two nations concerning tariffs are underway, albeit at a less formal level that does not involve high-ranking officials.
The mixed signals came right after Trump appeared to soften his approach towards China, stating that the U.S. intends to take a gentler stance and that the final tariffs would be significantly lower than the current 145%.
White House press secretary Karoline Leavitt dismissed claims of a softer position from Trump, reiterating to Fox News that “there will be no unilateral reduction in tariffs against China.”
This indication of potential tariff reductions contributed to a downturn in U.S. stock markets, which had previously seen gains, while Asian markets displayed a mixed response and European indices experienced declines in early trading.
Economist Lee Branstetter from Carnegie Mellon University noted that discussions about lowering tariffs unfold amid increasing discomfort caused by the tariffs’ impact on U.S. businesses and consumers. He suggested that considering tariff reduction without substantial concessions from China could be perceived as a retreat.
Branstetter remarked, “That, to me, is consistent with the view that the president did not really think through the consequences of his tariff decisions. They have now become much more evident to him.”
As the trade standoff endures, anxiety escalates regarding its broader implications. The International Monetary Fund recently downgraded growth projections for the U.S., China, and numerous other nations, citing the ramifications of U.S. tariffs.
Additionally, the White House is increasingly anxious about probable shortages in U.S. retail as the holiday season approaches and orders commence.
A spokesperson from Hapag-Lloyd, a German shipping company, commented on the situation, revealing that 30% of shipments from China to the U.S. have been canceled due to ongoing trade disputes.
China, having already prepared for the possibility of renewed trade battles during Trump’s first term, has refrained from rushing towards concessions or scheduling meetings with U.S. trade diplomats.
Wu Xinbo, an adviser within China’s Foreign Ministry and a professor at Fudan University in Shanghai, remarked, “We don’t care about what he wants.”
He explained that while some information may be exchanged between the U.S. and China at a lower level, it should not be interpreted as genuine negotiations. Wu suggested that Trump is merely attempting to project reassuring signals to the domestic market, asserting, “The Chinese are talking to us, don’t worry. But that’s not the case.”
Currently, China is confronting its own economic challenges, including a deceleration in its export-driven economy, which could be exacerbated by tariffs. Should domestic consumption fail to replace the decline in exports, negotiation might become a necessity for China.
Gary Ng, a senior economist for Natixis in Hong Kong, highlighted that convincing the burgeoning Chinese middle class to accept a decline in their living standards is “quite hard.”
Despite these pressures, Chinese President Xi Jinping has the advantage of not having to cater to a voter base, which may afford China extra time.
Branstetter concluded by stating, “I think the Chinese have taken the measure of Donald Trump. They’ve determined that he really can’t afford the economic and political cost that high tariffs, even on China alone, would generate, that he would fold pretty quickly if pushed. And that seems to be exactly what’s happening.”
image source from：https://www.nbcnews.com/news/world/tariff-trade-war-china-beijing-trump-washington-us-economy-markets-rcna202535
