China expressed openness to trade talks with the US on Wednesday, under certain conditions, even after the Trump administration clarified that "China now faces up to a 245% tariff on imports to the United States."
Beijing has said it is ready to join the negotiation table in order to calm the Trump trade war. But it warned that US should ‘stop exerting extreme pressure, stop threatening and blackmailing’, if the Americans wish to open trade talks. China also imposed three riders for trade talks between the two biggest economies of the world.
"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," Chinese foreign ministry spokesman said.
China put forth the following demands for Beijing to reach the negotiations table with US: A curb on disparaging remarks made by US cabinet members; a consistent US stance on trade matters; address China's concerns regarding American sanctions and US policy on Taiwan. China aslo called upon the US to appoint a lead negotiator with clear backing from Trump—someone capable of crafting an agreement that could be formally signed by both Trump and Chinese President Xi Jinping when they meet.
China’s dominance of the rare earths supply chain has emerged as among its most potent tools in a renewed trade war with the United States president. The minerals – used to power everything from iPhones to electric vehicles – are vital components for the kinds of advanced technology that will define the future.
Unlike tariffs, this is an area where Donald Trump has limited options for reciprocal retaliation.
Rare earth elements are a group of 17 metals more common than gold and found worldwide, including in the US. However, extracting and processing them is costly, complex, and environmentally harmful.
China said on Wednesday its economy grew a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.
However, analysts have warned that the impact of the US tariffs will be felt in the second quarter. "The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment," an expert said.
US treasury secretary Scott Bessent said on Tuesday that he was optimistic about "clarity" on tariffs and progress on key trade deals over the next 90 days, as Trump simultaneously sought to ramp up pressure on China to come to the negotiating table.
"Let's set aside China. There are 15 large trading partners. We set aside China," Bessent said in an interview. "There are 14, and we're in rapid motion and setting up a process for the 14 largest trading partners."
Investors are also focused on possible delays and exemptions to Trump's sweeping tariffs. Trump has signalled a possible delay to auto tariffs, adding to market relief after suspending levies on some consumer tech, even as he insists these tariffs will eventually come to fruition.
