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China’s trade talk comments aim to ramp up pressure on US, analysts say

Beijing confirmed on Friday it was open to discussing a trade deal – but added that Washington should lift its tariffs

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The US-China trade war has already led to a steep drop in container shipping between the world’s two largest economies, putting both sides under pressure to seek a deal to de-escalate the conflict. Photo: SCMP
Ji Siqiin Beijing,Ralph Jenningsin Hong KongandAlice Liin Hong Kong

China’s confirmation that it is evaluating whether to reopen talks with the United States over a potential deal to de-escalate the trade war should not be interpreted as a softening of its position, as Beijing remains in no rush to engage, analysts said.

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Beijing said on Friday that Washington had been reaching out “through relevant channels, expressing a desire to engage in talks” – its first official acknowledgement in weeks of a US overture.

But a spokesperson from the Ministry of Commerce also said the US should remove the tariffs it had imposed on China to “demonstrate sincerity by addressing its wrong practices”, if it truly wanted to talk.

The comments represent a “positive step”, because they formally outline China’s conditions for any trade discussions with the US, said Victor Gao, vice-president of the Centre for China and Globalisation, a Beijing-based think tank.

However, the ministry statement does not reflect a change in tone from China, as Beijing is serious about making the US lower tariffs before any formal negotiations begin, according to Gao.

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“I think it brings everything back to square one rather than changing the Chinese position,” he said. “My reading is that China is not in a hurry to talk to the United States. The ball is in the American court.”

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