China stated on Thursday 24 April that they are not presently negotiating with the US on trade. The message was made in consequence to president Donald Trump's declaration that both sides were in direct contact.
During the regular briefing of the Ministry of abroad Affairs Guo Jiakun has been asked about American suggestions that talks are underway and that there may be an agreement on customs.
"None of this is true," Guo replied. "China and the US do not hold consultations or negotiations on customs, and all the more reason they have not reached an agreement".
After Trump announced "reciprocal" customs on April 2, rival superpowers launched a series of fast retaliatory action, resulting in fresh US charges on Chinese goods rising to 145%, while Beijing's retaliation on American products reached 125%.
"This customs war was started by the United States," said Guo. "China's state is consistent and clear. We'll fight if we have to. Our door is open if the U.S. wants to talk. dialog and negotiations must be based on equality, respect and common benefit."
The Ministry of Commerce of China issued a akin message denying that any negotiations with the American side were taking place.
Trump, asked by a reporter in Washington the day before (Wednesday), if both sides were communicating, said: “Yes, of course. all day.”
The U.S. administration this week has clearly softened its speech towards China – which is seen as a consequence to widespread concerns about economical and marketplace harm that could consequence in the cessation of trade with China. Trump promised that the United States would be "very nice" for China in talks, and the customs rate would "slightly fall" erstwhile the countries reached an agreement, although "not zero".
The decisive denial of China may be a cold shower of investor hopes that trade war may be deescalated as rapidly as it has intensified.
Michael Hirson, head of the Chinese investigation department at the fresh York 22V investigation company, wrote in his article that developments depend mainly on how Trump's administration will communicate with the authorities of the PRC.
"If president Trump de-escalates without additional conditions, specified as the fresh postponement of tariff increases on China for 90 days, at the time erstwhile both parties begin negotiations – Beijing is likely to reciprocate," Hirson wrote. "However, if Trump demands Beijing to act in advance in exchange for this postponement – China will not be willing to act quickly, possible negotiations will last a long time".
According to Hirson, the hazard of this second script is increasing. This is how you can read the fresh comments of Treasury Secretary Scott Bessent, who suggested this week that the US would not offer a unilateral change of course.
Meanwhile, China's president Xi Jinping is not subject to the political force that Donald Trump was subjected to by his own decisions. Moreover, China can balance any of the effects of US action through a stimulus policy. In line with what could have been predicted by the United States, as a consequence of the imposition of specified a horrendous work that the Americans must pay, they are now faced with "higher household accounts, but besides serious problems for many manufacturers, retailers and logistics companies, as a consequence of the abrupt simplification in supply from China".
"The reality, if president Trump decides to accept it, is that he is not presently in a favourable negotiating position with Beijing" - wrote Michael Hirson.
Source: Nikkei Asia
Leszek B. Glass
Email: [email protected]
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