FT: China signals willingness to engage in trade talks with US

Chinese state media has signalled a potential softening of Beijing’s stance in its ongoing tariff dispute with the US, stating there would be "no harm" in holding trade talks with the Trump administration.

The statement comes as China’s economic data begins to reflect the toll of the trade war, with April factory activity showing its largest drop since 2023 as export orders dwindled, Caliber.Az reports, citing The Financial Times.

A social media post by Yuyuan Tantian, an account linked to state broadcaster CCTV, noted that while Beijing did not require talks with the US before Washington took substantial action, there was "no harm" in engaging with the US at this stage. The post highlighted that US officials had "proactively reached out to China through various channels, hoping to hold talks with the Chinese side on tariffs."

The post also referenced US economic data, including empty ports and a GDP contraction in the first quarter, suggesting Washington was "definitely the more anxious party" for negotiations. "If it is talk, the door is wide open," Yuyuan Tantian remarked. "If it is a fight, we’ll see it through to the end."

Analysts interpreted the language as a significant softening of China’s position. Last week, China’s commerce ministry had insisted that the US would need to remove its steep tariffs before any negotiations could commence. Andrew Polk, co-founder of Trivium China, described the post as "laying the groundwork to come to the table," adding that the portrayal of the US as the more anxious party was a way for China to project strength in the negotiations. He suggested this approach would likely appeal to a domestic audience and give Beijing cover to begin talks.

Zichen Wang, author of the Pekingnology newsletter and research fellow at the Center for China and Globalization, noted that the use of social media for signalling trade intentions was relatively new in China, though Beijing had previously employed similar tactics during the first trade war with the US. Wang also stated that for progress to be made, the US "must demonstrate respect, refrain from hostile rhetoric and exhibit genuine sincerity."

The trade war, which escalated after President Trump began raising tariffs on Chinese goods in February, has seen additional levies reaching 145 per cent on Chinese exports, while Beijing retaliated with a 125 per cent duty on US products.

Trump commented on April 30 that he expected to speak with Chinese President Xi Jinping at some point, though he has made several unverified claims about ongoing talks between the two countries. Jamieson Greer, the US trade representative, clarified that no formal trade negotiations had taken place since Trump assumed office in January.

Despite Trump’s desire to negotiate directly with Xi, Chinese officials have made it clear that meaningful discussions would need to be established before such a meeting could occur. Trump, speaking on the trade war’s impact, stated, "Right now... they’re having tremendous difficulty because their factories are not doing business." He added, "Somebody said: ‘Oh, the shelves are going to be open.’ Well, maybe the children will have two dolls instead of 30 dolls... and maybe the two dolls will cost a couple bucks more than they would normally."

In recent weeks, large US retailers like Walmart and Target have warned the White House that the ongoing trade dispute could result in empty shelves across the country.

While both countries remain locked in a deadlock, some tariffs have been softened with exemptions granted for crucial goods like iPhones and chemical imports. However, the economic impact is being felt on both sides. US ports have seen traffic decline sharply, while export-dependent factories in China have begun furloughing workers.

Lynn Song, chief economist for Greater China at ING, highlighted the job market as a critical pressure point for China, stating, "The key pain point for China in the current test of endurance between China and the US is the health of the job market."

By Aghakazim Guliyev