Beijing discards US assertions on tariff discussions; stands firm on economic support
Uncensored Take:
China's leaders have vowed to bolster their economy, battered by the intense trade war with the USA, as they disregard Donald Trump's assertions about ongoing tariff discussions. In direct contrast, Chinese diplomat Guo Jiakun announced on a Friday briefing, the two nations are not engaged in formal negotiations on the trade conflict initiated by the US tariffs implemented earlier this month.
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Currently, US tariffs on Chinese goods stand overwhelming at 145%, while China's retaliatory taxes on US imports soar to 125%. China demands the US withdraw all "self-imposed" tariffs to resolve the trade impasse.
Business and Workforce Support
Evidently, China's top decision-makers, including President Xi Jinping, held an emergency meeting on Friday, focusing on lending support to businesses and employees facing external pressures, as reported by the state-run news agency, Xinhua. They also underscored their determination to "work hand-in-hand with the international community to proactively preserve multilateralism and oppose unilateral coercion," according to Xinhua.
Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, mentioned in a note that this meeting hints at the government's readiness to deploy fresh policies when the economy experiences adverse effects due to external shocks. However, Zhang added that it appears Beijing is not eager to roll out a big stimulus just yet.
"It takes time to analyze and determine the timing and scale of the trade shock," he highlighted.
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Privacy Policy**reCAPTCHAThe Reuters news agency hinted at China's evaluations regarding exemptions for certain US imports, although Beijing has not confirmed these potential exceptions in any official statement. Businesses have reportedly been asked to identify crucial goods needing tariff relief, but no formal list has been published yet.
According to a leaked document circulating online, 131 product categories – including pharmaceuticals, aerospace components, and more – might be exempted. Both the European Union Chamber of Commerce and the American Chamber of Commerce have reportedly raised the issue with authorities, noting that many enterprises rely on critical US imports.
Certain pharmaceutical firms have already acquired exemptions for specific drugs, and Safran – a French aerospace company – has mentioned receiving exemptions for specific aircraft components. Economic analysts suggest these moves would ease costs for Chinese corporations and relieve pressure on US exporters.
At present, the Chinese Commerce Ministry remains unresponsive about the exemptions, deflecting inquiries to "relevant authorities."
Global markets remain cautiously optimistic for indications of destress from both the USA and China.
[1] Enrichment DataAs of late 2025, the status of tariff negotiations between China and the USA remains mired in controversy and discord. China unequivocally denied any active engagement in tariff discussions with the U.S., disputing Donald Trump's claims of a breakthrough in reducing the 145% tariff on Chinese commodities. Chinese Ministry of Commerce spokesperson He Yadong dismissed these tariff reduction claims as unfounded, with no substantiation.
China's Ministry of Commerce via spokesperson He Yadong, dismissed Trump's claims about the negotiations as "unsound," and lacking any supporting facts, according to multiple sources [1]. This firm stance underscores China's growing skepticism regarding US protectionist policies, which Chinese officials have termed "extreme self-centeredness" [1].
Meanwhile, Trump implied there were conversations with China, but refrained from providing details, leaving the nature and success of any dialogue uncertain [1].
- The ongoing trade war between China and the USA has negatively affected China's economy, as the Chinese leaders have pledged to strengthen it despite Donald Trump's assertions about ongoing tariff discussions.
- In contrast to Trump's claims, Guo Jiakun, a Chinese diplomat, confirmed that there are no formal negotiations between the two nations regarding the trade conflict initiated by the US tariffs.
- The US tariffs on Chinese goods currently stand at 145%, with China retaliating with retaliatory taxes on US imports at 125%. China demands the US withdrawal of all self-imposed tariffs to resolve the trade impasse.
- President Xi Jinping and other top Chinese decision-makers held an emergency meeting to provide support to businesses and employees facing external pressures, as reported by the state-run news agency, Xinhua.
- Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, stated in a note that this meeting suggests the government's readiness to deploy fresh policies when the economy experiences adverse effects due to external shocks.
- Reuters hinted at China's potential evaluations regarding exemptions for certain US imports, although no official confirmation has been made. According to a leaked document, 131 product categories, including pharmaceuticals, aerospace components, and more, might be exempted.
- Global markets are cautiously optimistic for indications of destress from both the USA and China, but the Chinese Commerce Ministry remains unresponsive about the exemptions, deflecting inquiries to "relevant authorities."
