Part of a bid to defuse worsening trade tensions, China has made overtures suggesting it is open to re-initiating talks with the U.S., but within certain conditions such as evidence that the administration led by President Donald Trump is truly respectful. Chinese officials privy to Beijing’s thinking have explained a series of steps America must take before the world’s top economy re-resumes serious bargaining, predicting that the fate of the world’s economy rests with these subtle diplomatic exchanges.
Respect and consistency imperative for Beijing
The greatest demand for China’s preparedness to enter negotiations is respect. Leaders in China are demanding that Trump administration officials tone down insultive comments and have a consistent style of addressing matters related to China. One of the issues of concern is the tone by high-ranking U.S. government officials, which sometimes has been contradictory or lacking respect, says Beijing. While President Trump himself has occasionally been a little more conciliatory in demeanor towards Chinese President Xi Jinping, other administration officials have been much harsher, leaving Chinese officials uncertain about the U.S. position.
One of the Chinese government insiders stated that Beijing believes Trump has significant leverage within his government, and when Trump officials make forceful public comments about China, the president is assumed to have their views unless he specifically disavows them. This lack of clear American leadership has instilled confusion and mistrust, particularly when members of the administration such as Vice President JD Vance have made incenting remarks such as referring to “Chinese peasants” that were denounced by China as ignorant and rude.
The Taiwan Issue and National Security Concerns
Along with rhetorical diplomacy, China’s terms of negotiations also include a willingness on the part of the U.S. to engage in talks over Beijing’s broader national security concerns, namely Taiwan. While China has consistently reaffirmed its assertion of the self-governing island as territory and has warned of using the military to defend its stance, it has also said that it will not initiate the first move towards provocations. But any action by the U.S. that it views as supporting Taiwan’s independence would be met with a strong counter-response.
Apart from that, Chinese officials are wary of US attempts to stifle China’s technological progress. Tight export controls have been placed on China by the Trump administration, particularly on sophisticated technologies such as semiconductor chips. On Monday, the US upped the ante further by stopping Nvidia Corp. from selling its H20 chip to China, which Beijing perceives as an attempt to halt its modernization.
A designated point person for talks
Another significant Chinese request is the appointment of a single U.S. representative to be responsible for trade negotiations. Beijing has made it clear that it would prefer someone who enjoys President Trump’s full backing, someone who has the authority to speak and act on behalf of the president’s level. There is no preference for the person per se, but Chinese officials believe that a designated point man would make negotiations more effective and signal a serious U.S. commitment to resolving trade disputes.
While China does understand that President Trump prefers personally to handle negotiations, officials believe that an official envoy will be more authoritative. The reason is to install a ready middleman to lead the dialogue and ensure the summit of Xi and Trump takes place with meaningful end results.
The stakes for global stability
The ongoing trade war between the U.S. and China, during which tariffs of as much as 145% on most products have been applied, has led Beijing to retaliate, potentially undoing trade between the two largest economies in the world. This has left the world’s markets in limbo, with financial analysts eagerly watching any progress or setback in the war.
The price of an extended trade war is catastrophic—no less so for the U.S. and China, but for the economy as a whole. In response to the just-released China report of comity, the offshore yuan advanced 0.2% on the dollar, and the Australian dollar, the traditional proxy for Chinese trade, advanced 0.5%. American stock futures also steadied, making up some lost ground.
The Road Ahead
While the U.S. and China will be going to grapple with their economic and political differences, reconciliation will only materialize if both countries decide to meet halfway. For China, these are terms of terms: respect, predictability, and a willingness to address key issues of national security, such as with regard to Taiwan and technology competition. If these conditions are met, China is prepared to sit down at the bargaining table—perhaps even resulting in a Trump-Xi summit.
In the coming weeks, the world will be looking at the U.S. to see if President Trump can coordinate his administration’s messaging and choose an emissary to start the process of easing the trade tensions. Currently, Beijing’s position is firm—talks can be had, but only if there is apparent commitment and deference coming from the U.S.
