China has signaled its willingness to engage in trade talks with the United States following comments by President Donald Trump indicating a “substantial” lowering of tariffs on Chinese goods. The announcement on Wednesday comes amid easing tensions in a trade dispute that has roiled global markets.
Chinese Foreign Ministry spokesman Guo Jiakun told a daily news briefing in Beijing, “The door for talks is wide open.” He reiterated China’s longstanding position that “there are no winners in tariff wars and trade wars,” emphasizing the mutual harm caused by escalating tariffs.
President Xi Jinping also warned that trade conflicts “undermine the legitimate rights and interests of all countries, hurt the multilateral trading system, and impact the world economic order,” according to state media.
Trump acknowledged on Tuesday that the current tariff level of 145 percent on many Chinese products was “very high” and signaled it would “come down substantially.” However, he clarified that tariffs “won’t be zero,” underscoring the administration’s intent to maintain leverage in negotiations.
“They have to make a deal because otherwise, they’re not going to be able to deal in the United States,” Trump said, highlighting the importance of reaching an agreement.
The tariffs, initially imposed over concerns including China’s alleged role in the fentanyl supply chain and unfair trade practices, have been met with sweeping Chinese counter-tariffs of 125 percent on US goods. Treasury Secretary Scott Bessent described the tariffs as a reciprocal trade embargo but expressed optimism about an imminent de-escalation during a closed-door JPMorgan Chase event.
Markets responded positively to these developments, with Wall Street indexes rising and Asian markets rallying. The main indexes in Hong Kong and Tokyo climbed around two percent, while gold prices retreated from recent highs as investor jitters eased.
Trump also dispelled rumors about firing Federal Reserve Chair Jerome Powell, stating he had “no intention of firing him” despite previous criticisms. He expressed a desire for Powell to be more proactive in lowering interest rates to support economic growth.
Treasury Secretary Bessent emphasized that the goal is not to decouple from China but to achieve fair trade and encourage China to rebalance its economy. Container bookings between the two countries have recently declined amid heightened trade tensions.
White House Press Secretary Karoline Leavitt said Washington was “doing very well in respect to a potential trade deal with China,” signaling cautious optimism.
Meanwhile, China’s Foreign Minister Wang Yi has been engaging with European counterparts, urging cooperation to safeguard international trade. Japan is reportedly considering concessions to ease tensions and is planning a second visit by its tariffs envoy to Washington.
As global finance ministers and central bankers gather in Washington this week, all eyes remain on the progress of US-China trade talks, which will play a critical role in shaping the global economic outlook.