Bloomberg: China lays out preconditions for trade talks with Trump administration

China is signalling it will not engage in new trade negotiations with the United States unless several key conditions are met, including a demand for greater respect from Washington and clearer messaging from President Donald Trump’s administration, according to a person familiar with Beijing’s internal discussions, quoted by Bloomberg.

Among the primary expectations, Chinese officials want Trump to rein in disparaging comments made by members of his cabinet. “Respect is the most important precondition for any talks,” said the person, who requested anonymity to speak about the internal thinking of the Chinese government.

Beijing is also seeking consistency in the US position on key issues, particularly regarding Taiwan and American sanctions. The Chinese leadership remains wary of what it views as contradictory signals coming from Washington, especially given that while Trump has publicly spoken in relatively measured terms about Chinese President Xi Jinping, other officials in his administration have adopted a far more hawkish stance.

Chinese officials are particularly unsettled by this mixed messaging. The same source indicated that Beijing assumes Trump now has significant control over his administration. Therefore, when officials make critical remarks about China and Trump does not refute them, it is viewed in Beijing as tacit approval.

One such remark has already drawn a rare public rebuke. Chinese Foreign Ministry spokesman Lin Jian last week called recent comments by US Vice President JD Vance about “Chinese peasants” both “ignorant and disrespectful.” Though the source did not identify specific statements from US officials, such rhetoric has been noted with displeasure in Beijing.

Beyond rhetoric, Beijing wants evidence that Washington is willing to address China's core concerns. High on the list is what Chinese officials see as a concerted effort by the US to slow China's modernization—especially through technology restrictions. Just this week, Trump’s administration barred Nvidia Corp. from selling its H20 chip to China, marking a fresh escalation in the ongoing tech standoff.

China is also adamant that its national security interests must be respected, particularly on Taiwan. The person stated that while Beijing does not plan any provocative action on the matter, it will respond if provoked. The self-governing island is considered by China to be part of its territory, and officials maintain their longstanding pledge to use military force if necessary to uphold that claim.

Another critical demand is the appointment of a clear point person to lead talks with Beijing—someone who not only has Trump’s full backing but can also prepare the groundwork for a formal agreement between the two presidents. China does not have a preference for who this person should be, but wants assurance that the individual would have direct authority from Trump.

According to the source, Chinese officials recognize that Trump might want to lead talks personally. While they would welcome such high-level engagement, Beijing believes the best course would be for designated negotiators—authorized by both leaders—to lead discussions. That, they argue, would maximize the chances of a successful summit between Xi and Trump.

The stakes are high. The global economy and financial markets remain on edge amid fears of a prolonged trade war between the world’s two largest economies. Since taking office, Trump has imposed tariffs of up to 145% on most Chinese imports, prompting retaliatory measures from Beijing and severely curtailing trade.

News of Beijing’s conditions offered a small boost to financial markets. The offshore yuan strengthened by 0.2% against the dollar, while the Australian dollar—a currency often tied to China’s economic outlook—rose 0.5%. Meanwhile, S&P 500 Index futures pared earlier losses, trimming a 1.6% decline down to 0.4%.

On April 15, Trump once again urged China to contact him directly to initiate negotiations aimed at ending the trade dispute. But as the source made clear, Beijing is unlikely to do so unless it sees clear signs of readiness and respect from the US administration.

By Tamilla Hasanova