Trending Now
Uncertainties persist in base metals market regarding US-China trade deal
‘All-in’: GOP lawmakers divided on US involvement as Trump pushes Iran...
Democratic lawmakers criticize Israel’s defensive strikes against Iran’s nuclear sites
Israel’s drone strikes in Iran show why US must halt China’s...
Biden-appointed judge thwarts Trump’s attempt to clean house at consumer safety...
Netanyahu calls on Iranian citizens to seize ‘opportunity’ for regime change
Israel’s actions against Iran create strategic opportunity for US in nuclear...
Israel strikes at the heart of Iran’s nuclear ambitions in Isfahan...
Time for Israel to take out ‘head of the snake,’ target...
Israeli official vows ‘We have more surprises coming up’ for Iran...
Uncertainties persist in base metals market regarding US-China trade deal
‘All-in’: GOP lawmakers divided on US involvement as Trump pushes Iran...
Democratic lawmakers criticize Israel’s defensive strikes against Iran’s nuclear sites
Israel’s drone strikes in Iran show why US must halt China’s...
Biden-appointed judge thwarts Trump’s attempt to clean house at consumer safety...
Netanyahu calls on Iranian citizens to seize ‘opportunity’ for regime change
Israel’s actions against Iran create strategic opportunity for US in nuclear...
Israel strikes at the heart of Iran’s nuclear ambitions in Isfahan...
Time for Israel to take out ‘head of the snake,’ target...
Israeli official vows ‘We have more surprises coming up’ for Iran...
Insider Dealing News
  • Stock
  • Investing
  • Politics
  • World News
  • Editor’s Pick
Politics

China signals openness to US trade talks as Hang Seng rises, but deal remains uncertain

by May 2, 2025
written by May 2, 2025
US-china trade war, Trump tariffs, China tariffs, US-China trade war

China said on Friday that it is assessing recent overtures from the United States to initiate trade negotiations, raising hopes of a potential thaw in the ongoing trade war between the world’s two largest economies.

However, Beijing warned that any dialogue would hinge on the removal of all unilateral tariffs imposed by Washington.

Beijing’s latest remarks come amid a series of conflicting statements from both the Trump administration and Chinese leadership about the status of trade talks, as each side seeks to avoid appearing to make the first concession.

A spokesperson for China’s Ministry of Commerce confirmed that senior US officials had recently reached out “through relevant parties multiple times” in an attempt to begin talks aimed at easing trade tensions that have disrupted financial markets and weighed on global economic sentiment.

“If the US wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs,” according to the statement.

Failure to do so, it added, would indicate “an outright lack of sincerity” and could further damage mutual trust.

The United States has imposed tariffs of 145% on a broad range of Chinese goods this year, prompting China to retaliate with levies of up to 125%.

Both sides have since issued limited exemptions on critical products to blunt the impact on their domestic industries.

Markets respond cautiously to potential thaw

Following the Chinese commerce ministry’s statement, the offshore yuan edged up 0.14% to 7.2665 per US dollar.

With mainland Chinese markets closed for a holiday, investors reacted through the Hong Kong exchange, where the Hang Seng Index rose 1.6%.

Despite the market response, there remains widespread skepticism over the likelihood of a breakthrough.

The Trump administration and Chinese leadership have issued a series of conflicting signals in recent weeks, each seeking to avoid the appearance of conceding first.

In a separate interview with Fox News, US Secretary of State Marco Rubio said the Chinese side was willing to talk, suggesting that some form of dialogue could resume soon.

Analysts expect a slow and complex process

Analysts were quick to caution that any progress toward a comprehensive agreement would likely be protracted and fraught with uncertainty.

Dan Wang, China director at Eurasia Group, pointed to the unpredictability of President Donald Trump as a key obstacle.

“The negotiation is difficult to start because Trump is chaotic. China will not risk losing control of the situation just for the negotiation’s sake,” Wang said in a CNBC report.

She anticipates that both sides will only arrange open negotiation after all details are agreed privately.

“A more likely scenario is just a long-lasting painful truce with both sides doing their own type of rolling back in practice without backing down politically in public. It can easily last the entire Trump term,” Wang said.

Alfredo Montufar-Helu, senior advisor to the China Center at The Conference Board, said both sides are expected to hold firm on issues central to their national interests.

“The process is likely to be delicate, as both sides will be reluctant to make concessions on issues they deem vital to their national economic security,” he noted.

“One of the major asks of China will be for tariffs to go back to pre-‘liberation day’ levels, at least during the negotiation period,” he said.

He added that such a move could offer significant relief to businesses in both countries, but it is uncertain whether the Trump administration would agree.

US officials float possibility of phased de-escalation

Some members of the Trump administration have hinted at a willingness to ease tensions.

Treasury Secretary Scott Bessent told Fox Business that current tariff levels are “not sustainable on the Chinese side,” and suggested a “big deal” could be on the horizon.

“Everything is on the table for the economic relationship,” Bessent said.

“First, we need to de-escalate, and then over time, we will start focusing on a larger trade deal.”

White House economic adviser Kevin Hassett echoed that view in a CNBC interview, noting that China’s recent tariff cuts on certain US products may indicate readiness for deeper engagement.

Tariff relief underway, but no formal compromise yet

President Trump this week signed an executive order exempting imported cars and parts from additional tariffs, following earlier relief granted to electronics.

China, for its part, issued waivers on tariffs for a range of American imports, including pharmaceuticals, aerospace components, and semiconductors.

Still, Chinese officials have not softened their stance on the broader political message.

“Although in practice, the effective tariffs on both sides have gone down, the political stance [from Beijing] has not changed,” said Eurasia Group’s Wang.

“China is actively managing this decoupling, not taking the bait from the US,” she added.

The post China signals openness to US trade talks as Hang Seng rises, but deal remains uncertain appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
DOJ sues four blue states over ‘unconstitutional’ climate laws threatening US energy security
next post
De minimis gone: how a little rule change is likely to upend US-China e-commerce flows

Related Posts

Iran pulls out of US talks after Israel...

June 13, 2025

US battery storage poised for sustained growth amid...

June 13, 2025

Israel’s attack on Iran deepens decades-old conflict: what...

June 13, 2025

Analysis: How rising Middle East tensions are shaking...

June 13, 2025

Brazil’s Haddad defends fiscal plan amid congressional pushback

June 12, 2025

Uncertainties persist in base metals market regarding US-China...

June 14, 2025

Israel attack on Iran sends travel stocks sinking...

June 13, 2025

SpaceX’s role in ‘Golden Dome’ under scrutiny after...

June 13, 2025

Gold prices eye record peak as Israel-Iran strikes...

June 13, 2025

EU nuclear ambition: $278B investment targets capacity boost...

June 13, 2025

Iran pulls out of US talks after Israel...

June 13, 2025

US battery storage poised for sustained growth amid...

June 13, 2025

Israel’s attack on Iran deepens decades-old conflict: what...

June 13, 2025

Analysis: How rising Middle East tensions are shaking...

June 13, 2025

Brazil’s Haddad defends fiscal plan amid congressional pushback

June 12, 2025

Uncertainties persist in base metals market regarding US-China...

June 14, 2025

Israel attack on Iran sends travel stocks sinking...

June 13, 2025

SpaceX’s role in ‘Golden Dome’ under scrutiny after...

June 13, 2025

Gold prices eye record peak as Israel-Iran strikes...

June 13, 2025

EU nuclear ambition: $278B investment targets capacity boost...

June 13, 2025







    Fill Out & Get More Relevant News





    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2024 InsiderDealingNews.com All Rights Reserved.

    Insider Dealing News
    • Stock
    • Investing
    • Politics
    • World News
    • Editor’s Pick