الوسم: Beijing

• Beijing has introduced new tariffs at 125% on U.S. imports.
• High-tech products get a temporary exemption from U.S. tariffs.
• Beijing insists that U.S. concessions are necessary for any discussions.

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On Friday, China announced that it is reviewing a U.S. proposal for tariff negotiations but emphasized that Washington must remove the tariffs that have disrupted global markets and supply chains before any discussions can commence.

Heavy tariffs from the U.S., reaching up to 145% on various Chinese products, took effect in April, prompting China to retaliate with its own 125% duties on American imports.

However, luxury tech items like smartphones, semiconductors, and computers have been granted a temporary exemption from these tariffs.

U.S. President Donald Trump has claimed several times that China has reached out for discussions regarding the tariffs, expressing optimism earlier this week about the likelihood of reaching an agreement.

The Chinese Ministry of Commerce stated on Friday that it was indeed the U.S. that initiated contact and that the proposal is currently being evaluated.

Nevertheless, the ministry warned that any negotiations would necessitate concessions from the U.S.

“If the United States wishes to engage in dialogue, it needs to demonstrate its sincerity, correct its missteps, and eliminate unilateral tariffs,” the ministry stated.

“If the U.S. fails to amend its one-sided tariff measures, it signals a lack of sincerity and could further undermine mutual trust,” it added.

“Speaking one way and acting another, or attempting intimidation and coercion under the guise of negotiations will not be effective,” declared the commerce ministry.

Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai, noted that Beijing is likely to take a tough stance.

“The U.S. hopes to initiate negotiations quickly, but our position is clear: they must take some action to demonstrate sincerity,” Wu remarked to AFP.

Once the U.S. revokes its tariffs on China, “we can engage in discussions about our valid concerns,” pertaining to U.S. worries about trade imbalance and China’s grievances over perceived U.S. efforts to hinder its technological advancements, he explained.

Meanwhile, numerous nations are facing a July deadline to finalize agreements with the U.S. to avoid increased country-specific tariffs.

In contrast, Beijing has pledged to continue the trade conflict resolutely, as highlighted in a video released by its foreign ministry this week, proclaiming “never to bow down!”.

“China’s stance has been consistently clear,” the commerce ministry asserted on Friday.

“If it’s a battle, we will fight to the end; if it’s a conversation, our door is open wide. The tariff and trade conflicts were initiated unilaterally by the U.S.”

Offering an Olive Branch

China has acknowledged that fluctuations in the global economy have put pressure on its export-dependent economy, with officials admitting that firms focused on foreign markets are struggling.

Recent data revealed a contraction in factory activity in April, with Beijing attributing it to a “significant shift” in the global economy.

Additionally, data released this week indicated that the U.S. economy unexpectedly shrank in the first quarter of the year, driven by an import surge due to Trump’s tariff initiatives.

The United States also eliminated tariff exemptions on Friday for Chinese goods valued under $800, a move that could significantly impact consumer purchasing behavior.

Ja-Ian Chong from the National University of Singapore stated that it’s still uncertain whether progress can be achieved, despite the urgent economic need for both sides to reach an agreement.

“Neither side wants to appear weak,” he noted.

Stephen Innes, an analyst at SPI Asset Management, remarked that Beijing’s latest statements signify the “first olive branch” in the protracted trade dispute.

“On paper, both capitals are signaling a desire for détente,” he observed in his commentary.

“However, beneath the surface, the road remains fraught with challenges,” he added.

“China’s commitment to fight ‘to the end’ hasn’t been abandoned, merely placed behind softer rhetoric — and the insistence on canceling tariffs first remains a non-starter for the White House.”