China says open to US trade talks offer but wants tariffs scrapped
[BEIJING] China said on Friday (May 2) it is evaluating a US offer for negotiations on tariffs but insisted Washington must be ready to scrap levies that have roiled global markets and supply chains before talks can begin.
Punishing US tariffs that have reached 145 per cent on many Chinese products came into force in April while Beijing has responded with fresh 125 per cent duties on imports from the US.
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 the tariffs, and this week said he believed there was a 'very good chance we're going to make a deal'.
Beijing's commerce ministry on Friday said that it was the US that had reached out and that it was 'currently evaluating' the offer.
But, it said, any talks would first require concessions from the US side.
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'If the US wants to talk, it should show its sincerity to do so, 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 Center 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 gripes 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 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 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 factory activity shrank in April, with Beijing blaming a 'sharp shift' in the global economy.
And on Wednesday data showed the US economy unexpectedly contracted in the first three months of the year Donald Trump's tariff plans triggered an import surge.
The US also ended tariff exemptions on Friday for goods shipped from China worth less than US$800, a move which could have significant ramifications on consumers' purchasing habits.
Ja-Ian Chong of the National University of Singapore said it remained unclear whether any progress can be made, despite the mounting economic need for both sides to make a deal.
'Neither side wishes to look weak,' he said.
Analyst Stephen Innes at SPI Asset Management said Beijing's latest comments represented the 'first olive branch' in the gruelling trade war.
'On paper, both capitals are waving detente 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' stick remains a non-starter for the White House.' AFP
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