China chides US over ‘serious negative impact’ of Trump tariffs as trade talks set to begin

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"China and US Set to Discuss Trade Tensions Amid Ongoing Tariff Disputes"

China chides US over ‘serious negative impact’ of Trump tariffs as trade talks set to begin analysis cover image The Guardian 7.6
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Original Article Source: https://www.theguardian.com/world/2025/may/07/china-us-trump-tariffs-trade-talks
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TruthLens AI Summary

China is preparing to engage in trade talks with the United States in Switzerland from May 9 to 12, marking the first official discussions since President Donald Trump implemented significant tariffs that have contributed to escalating tensions between the two nations. Vice Premier He Lifeng will lead the Chinese delegation, which will also include US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The meetings come after conflicting claims from both sides regarding who initiated the dialogue, with China asserting that it agreed to these talks in response to the interests of its own economy and the requests from US businesses. China's commerce ministry emphasized that for negotiations to be fruitful, the US must acknowledge the detrimental effects of its unilateral tariff actions, not only on its own economy but also on the global economic landscape.

As the trade war continues, tariffs imposed by the US on Chinese imports have surged to 145%, while China has retaliated with tariffs of 125%. Although both countries have enacted exemptions to mitigate the economic impact on certain goods, the overall repercussions remain severe. Recent reports indicate a slowdown in China's factory activity, attributed to the difficulties in exporting goods to the US, suggesting that the trade war is taking its toll. The World Trade Organization has projected a dramatic decline in Chinese exports to the US, which could plummet by 77% if the current tariffs persist. In light of these challenges, China has expressed its determination to endure economic hardship in the trade conflict, positioning itself as a reliable partner compared to the US, which it describes as unpredictable. As the discussions approach, the focus appears to be on de-escalation rather than reaching a comprehensive trade agreement, highlighting the complexities of the ongoing trade dispute.

TruthLens AI Analysis

The article highlights the ongoing trade tensions between China and the United States, particularly in the context of recent tariffs imposed by former President Donald Trump. The meeting in Switzerland signifies a crucial moment for both nations to address the economic impacts of these tariffs, as well as their broader implications for global trade.

China's Stance on Tariffs

China has expressed a firm position regarding the "serious negative impact" of U.S. tariffs not only on itself but also on the global economy. The Chinese government aims to project an image of defending international fairness and justice while emphasizing its willingness to engage in discussions. This narrative supports China's strategy of framing itself as a responsible global player in contrast to the unilateral actions taken by the U.S.

U.S. Approach to Trade Talks

The article mentions that U.S. Treasury Secretary Scott Bessent views the upcoming talks as an opportunity to de-escalate the trade war rather than finalize a comprehensive agreement. This indicates a tactical shift, focusing on reducing tensions rather than negotiating a complex deal. Bessent's comments suggest a recognition of the unsustainable nature of the current tariff situation, which could lead to adjustments in U.S. economic policy.

Impacts of Tariffs on Economies

The tariffs have escalated significantly, with U.S. tariffs on Chinese imports reaching 145% and Chinese counter-tariffs at 125%. Both nations have resorted to exemptions to mitigate economic fallout, revealing the interconnectedness of their economies. This aspect underscores the potential for mutual economic damage, which both sides may want to avoid, thus motivating the discussions.

Public Perception and Information Control

The article aims to shape public perception by emphasizing the negative consequences of unilateral tariffs while portraying China as open to dialogue. This framing may downplay any internal criticisms within China regarding its trade practices and the potential impact of tariffs on its economy. By presenting the issue as a bilateral negotiation, the article might obscure the broader geopolitical tensions and domestic factors influencing both nations' trade policies.

Market Reactions and Economic Projections

Given the significance of U.S.-China trade relations, the news could influence stock markets and investor sentiment. Companies heavily reliant on Chinese imports or exports, particularly in the technology and consumer goods sectors, may experience volatility based on how negotiations unfold. The focus on de-escalation may provide temporary reassurance to investors, but unresolved issues could lead to ongoing market fluctuations.

Geopolitical Implications

The article touches on the larger implications of U.S.-China relations for global power dynamics. The trade war has the potential to reshape alliances and influence economic policies worldwide. As both nations navigate these negotiations, their actions may signal to other countries how to approach similar trade disputes.

In conclusion, the article presents a comprehensive overview of the current state of U.S.-China trade relations, emphasizing the potential for negotiation while highlighting the significant economic stakes involved. It aims to foster a perception of cooperation and responsibility from both parties, even as underlying tensions persist.

Unanalyzed Article Content

Source URL: https://www.theguardian.com/world/2025/may/07/china-us-trump-tariffs-trade-talks

China has vowed to “safeguard international fairness and justice” in upcoming talks with the United States in Switzerland, the first meeting between the two countries to discuss trade war that has roiled the global economy since US president Donald Trump unveiledsweeping tariffslast month.

China’s vice-premier He Lifeng will meet US treasury secretaryScott Bessenton the sidelines of meetings in Switzerland between 9 and 12 May. US trade representative Jamieson Greer will also attend.

China’s commerce ministry said on Wednesday the agreement to talk followed the US sidetaking the initiativeto approach China. Beijing and Washington have presentedconflicting accountsabout which side initiated talks. China said it agreed to send He for talks after a consideration of “Chinese interests and the appeals of US industry and consumers”.

“If the US wants to resolve the issue through negotiation, it must face the serious negative impact of unilateral tariff measures on itself and the world,” China’s commerce ministry said.

Bessent said on Tuesday the talks would be focused on de-escalating the trade war, rather than negotiating any deal.

“We will agree what we’re going to talk about. My sense is that this will be about de-escalation, not about the big trade deal,” Bessent told Fox news. “This isn’t sustainable,” he said.

Since Trump took office in January, he has unleashed a wave of tariffs on China and other countries, which risk upending the global economic order and undermining the foundation of stable relations between the world’s two largest economies.

US tariffs on Chinese imports have now reached 145%, with Chinese counter-tariffs reaching 125%. Both sides have implemented a number of exemptions tosoften the blowon their respective economies.

The US exempted smartphones and some other electrical products, following reports that the price of an iPhone in the US could increase by more than 40%.

China, meanwhile, has exempted select pharmaceuticals, microchips and aircraft engines, along with other undisclosed items that arereportedlybeing included on a “whitelist” that has not been made public.

But the economic impact of the trade war remains severe. China’sfactory activity slowed in April, which analysts said reflected the trade war making it much harder to ship goods to the US. This month the US alsocloseda loophole that had allowed low-value goods to be shipped to the US free, a regime which had generated $66bn for the Chinese economy in 2023, according to a report from the US Congress.

The World Trade Organization estimates that Chinese exports to the US, which were worth $440bn last year, will fall by 77% this year if the tariffs remain in place.

China has repeatedly vowed to “fight to the end” in the trade war, with leaders betting their country can withstand more economic pain if necessary than Americans would be willing to tolerate.

Beijing is also trying to woo other countries, presenting itself as a stable partner in contrast to a capricious US. “China notes that some economies are also in talks with the US,” China said on Wednesday. “We need to stress that appeasement cannot be turned into peace, and compromise cannot be respected”.

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Source: The Guardian