China signaled readiness for renewed trade negotiations following President Donald Trump’s softened stance on the intensifying U.S.-China trade war—an economic standoff that has shaken global markets and stoked fears of a global recession.
Speaking at a press briefing on Wednesday, Guo Jiakun, spokesperson for China’s Ministry of Foreign Affairs, stated, “Our doors are wide open” for trade talks. The comment, reported by Chinese state media, reflects a potential turning point in the strained relationship between the world’s two largest economies.
Why This Matters: U.S.-China Trade War’s Global Impact
The U.S.-China trade war has significantly disrupted international trade and investor confidence. The International Monetary Fund (IMF) recently lowered its 2025 global growth forecast to 2.8%, attributing the downgrade largely to the ongoing tariff conflict.
Any movement toward resolving the trade dispute could ease market volatility, restore business optimism, and prevent further damage to global supply chains.
Trump Hints at Reducing Tariffs on Chinese Imports
Just a day before China’s statement, Donald Trump expressed optimism about reaching a deal with Chinese President Xi Jinping. Speaking at the White House, Trump said that although tariffs on Chinese imports are currently “very high,” he expects they will “come down substantially”, though not to zero.
“I think we’re going to live together very happily and ideally work together,” Trump said, signaling a shift toward diplomacy.
At the same time, U.S. Treasury Secretary Scott Bessent addressed private investors, saying the tariff war is unsustainable and suggested that a de-escalation is likely imminent, according to The Associated Press.
Tariff Breakdown: U.S. Duties on Chinese Goods Could Reach 245%
Despite this softening in tone, Trump has excluded China from a recent tariff pause granted to other trading partners. He cited China’s retaliatory tariffs and alleged involvement in the fentanyl trade as justification.
Currently, tariffs on Chinese imports include:
- 125% reciprocal tariff
- 20% fentanyl-related tariff
- Additional Section 301 tariffs, pushing total rates up to 245% on some goods
These aggressive measures have raised concerns across industries and among investors fearing long-term economic fallout.
Global Markets Respond Positively to Signs of De-Escalation
Financial markets around the world rallied on signs of progress in U.S.-China trade relations.
- France’s CAC 40 rose 2.1%
- Germany’s DAX gained 2.5%
- UK’s FTSE 100 increased 1.6%
- Japan’s Nikkei 225 added 1.9%
- South Korea’s Kospi jumped 1.6%
- Hong Kong’s Hang Seng Index surged 2.4%
In the U.S., futures also pointed to gains:
- Dow futures were up 1.5%
- S&P 500 futures rose 2%
China Calls for Dialogue Based on Respect and Equality
Guo Jiakun emphasized that while China does not seek a trade war, it is ready to respond if necessary.
“If the U.S. truly wants to resolve issues through dialogue and negotiation, it should stop threatening and blackmailing,” Guo said, per China’s Global Times. “Engagement must be based on equality, mutual respect, and mutual benefit.”
What Experts Are Saying
Tim Waterer, chief market analyst at KCM Trade, told the Associated Press:
“Markets are highly sensitive to White House rhetoric on tariffs. Any suggestion of a forthcoming deal could shift investor sentiment dramatically.”
What’s Next for U.S.-China Trade Talks?
The Trump administration is currently in negotiations with multiple trade partners, and China fears being isolated through these new deals. However, both Trump and Bessent have expressed a willingness to re-engage with China, acknowledging that the current situation is not viable in the long term.
With both sides signaling openness to negotiations, the global market will be closely monitoring for the next steps in resolving the U.S.-China trade conflict.