Trump Asserts Ongoing Trade Talks with China Despite Beijing's Denials

Washington: U.S. President Donald Trump contradicted China’s recent statements on Thursday, asserting that trade negotiations between the United States and China were actively underway.

“They had a meeting this morning. It doesn’t matter who ‘they’ is. We may reveal it later, but they had meetings this morning, and we’ve been meeting with China,” Trump stated to reporters, responding directly to earlier comments by Chinese authorities denying such talks.

Earlier in the day, Chinese Commerce Ministry spokesperson He Yadong explicitly stated, “At present, there are absolutely no negotiations on the economy and trade between China and the U.S.,” calling for the removal of unilateral U.S. tariffs as a prerequisite for meaningful dialogue.

These conflicting statements come amid a period of heightened trade tensions, following Washington’s recent decision to impose 145% tariffs on Chinese imports. Beijing retaliated with duties and imposed restrictions on exports of critical minerals.

Trump’s comments echo earlier indications from U.S. Treasury Secretary Scott Bessent, who also hinted at possible easing tensions between the two economic giants. However, China maintains its position firmly, emphasizing equal treatment as essential to resume negotiations.

Yue Su, principal economist at The Economist Intelligence Unit, noted a strategic shift in China's approach, stating, "Due to the inconsistency of Trump’s policies, China’s strategy has shifted from focusing on ‘what you need’ to ‘what I need.’”

Wall Street banks have begun revising their forecasts downward for China’s GDP growth, reflecting market uncertainties caused by these trade tensions. Beijing has concurrently emphasized internal measures aimed at bolstering domestic markets as alternatives for affected exports.

According to Jianwei Xu, senior economist at Natixis, meaningful discussions from China's perspective would likely demand the reduction of U.S. tariffs to previous lower levels. However, this could be politically challenging for the Trump administration, potentially questioning the rationale behind the prolonged confrontation.

While the U.S. remains China's largest single-country trading partner, recent shifts have seen Southeast Asia overtaking the European Union as China's largest regional trading partner, highlighting evolving dynamics amid ongoing global trade tensions.