U.S.-China Trade War Reignites
The U.S.-China trade war has sparked new waves of tension. Recently, former U.S. President Donald Trump publicly stated that trade negotiations are ongoing between the two parties; however, Chinese officials immediately refuted this, emphasizing that “there are currently no economic or trade discussions at all.” This diplomatic dilemma of “who is telling the truth” has attracted significant attention from various sectors.
Trump: We Had a Meeting This Morning!
On Thursday, President Trump told the media that trade talks with China are still ongoing. He vaguely mentioned, “They had a meeting this morning… It doesn’t matter who ‘they’ are; perhaps we will announce it later, but we are indeed having meetings with China.” This statement seems to suggest that U.S.-China negotiations are taking place behind the scenes, but it has also raised doubts. If meetings are indeed happening, why is there such a discrepancy in the narratives of both sides?
The Chinese side firmly stated: No negotiations and no acceptance of unilateral pressure. In response to Trump’s remarks, Chinese Ministry of Commerce spokesman He Yadong clearly denied the claims. He stated, “Currently, there are absolutely no negotiations between China and the U.S. regarding economic and trade matters.” He further added, “All statements regarding the progress of negotiations should be regarded as false.” Additionally, He emphasized that China’s fundamental position is that if the U.S. genuinely wants to resolve issues, it must “lift all unilateral sanctions.”
Chinese Foreign Ministry spokesman Guo Jikuan also reiterated this stance on Thursday afternoon, stating that China is willing to engage in dialogue, but the premise is that “China should be treated equally.”
Mutual Tariffs Intensify Trade War
Earlier this week, Trump and newly appointed Treasury Secretary Scott Bessent both signaled a willingness to reconcile with China; however, in reality, the White House has recently imposed tariffs of up to 145% on Chinese goods. In response, Beijing has not only launched retaliatory tariffs but has also tightened restrictions on the export of rare earths and critical minerals, further escalating the bilateral tensions.
China has also warned any countries that might “sacrifice Chinese interests” to cooperate with the U.S., stressing that it may take retaliatory countermeasures.
Economic Scholars Observe: Changes in China’s Strategy
Yue Su, the chief economist for Greater China at The Economist Intelligence Unit, pointed out that China’s negotiation strategy has shifted. “In the past, China was more focused on the needs of the other party, but now they are more focused on what they want.” She believes this reflects China’s distrust of the Trump administration’s inconsistent policies and ambiguous positions.
Su further added, “This is a moment when China may adopt a ‘whatever it takes’ attitude. If the U.S. continues to escalate pressure, it is possible that China will become even more hardline.”
Impact on Businesses and Markets Begins to Emerge
Under this dual offensive of rhetoric and tariffs, several large banks on Wall Street have downgraded China’s GDP growth forecasts for this year. The Chinese Ministry of Commerce has also indicated that it is working to help companies shift products originally intended for export to the domestic market to alleviate pressure.
Jianwei Xu, a senior economist for the Greater China region at Natixis, noted that for China to return to the negotiation table, the U.S. may need to reduce tariffs to the original level of 20% or even lower. However, for Trump, such concessions may provoke public skepticism: “If we end up back at square one, what was the point of this trade war?”
Geoeconomic Landscape Quietly Changes
Although the U.S. remains China’s largest single-country trading partner, on a regional level, Southeast Asia has surpassed the European Union in recent years to become China’s largest regional trading partner. This trend indicates that China is actively seeking to diversify its export markets to reduce reliance on the U.S.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, with prices potentially fluctuating dramatically, and you may lose your entire principal. Please assess the risks carefully.