China calls claims “baseless” and demands US drop tariffs before negotiations resume
A sharp disagreement has erupted between Washington and Beijing over the status of trade negotiations, with US President Donald Trump insisting that discussions are ongoing—even as Chinese officials categorically deny any such engagement is taking place.
Speaking on Thursday, Trump told reporters that meetings with China had taken place earlier that 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,” he said.
His remarks directly contradicted statements from China’s Ministry of Commerce and Ministry of Foreign Affairs, both of which rejected any suggestion that formal trade talks were underway. “At present, there are absolutely no negotiations on the economy and trade between China and the US,” said Commerce Ministry spokesperson He Yadong, dismissing reports of progress as “groundless.”
China has responded to the latest round of tariffs—145% imposed by the US earlier this month—with retaliatory 125% duties and increased restrictions on rare earth exports. He Yadong reiterated that if Washington is serious about resolving the impasse, it must cancel “all unilateral tariff measures” and approach talks on a basis of “mutual respect.”
The exchange highlights the increasingly surreal tenor of the standoff. Even within the US administration, there are contradictions. Treasury Secretary Scott Bessent has called the current trade posture “unsustainable” and hinted at a future deal. Yet just days ago, he confirmed that no formal talks had begun, reinforcing China’s position. Meanwhile, Trump floated the idea that tariffs would “come down substantially, but it won’t be zero,” suggesting a softening stance even as tensions rise.
China’s Foreign Ministry spokesperson Guo Jiakun was more blunt. “For all I know, China and the US are not having any consultation or negotiation on tariffs, still less reaching a deal.” He called the idea “fake news.”
Economists say the breakdown reflects a deeper strategic divergence. “China definitely wants to see the trade war deescalate,” said Yue Su, principal economist at The Economist Intelligence Unit. “However, due to the inconsistency of Trump’s policies and the lack of clarity around what he actually wants, China’s strategy has shifted from focusing on ‘what you need’ to ‘what I need.’”
China has also warned third countries against aligning too closely with the US in trade matters, threatening countermeasures. And while Beijing has not raised tariffs beyond the 125% level, it has begun implementing export restrictions and initiated multiple WTO challenges.
Internally, the Chinese government is weighing whether to introduce stimulus measures to offset the economic drag from tariffs. Although first-quarter growth came in above target at 5.4%, economists believe any further escalation may prompt Beijing to act. “It’s too early for Beijing to go all in on policy support,” said Macquarie’s chief China economist Larry Hu. “After all, it’s much easier for Trump to walk back his tariff threat than it is for Beijing to walk back its stimulus announcement.”
The IMF has echoed concerns about prolonged uncertainty. Managing Director Kristalina Georgieva warned that global investment is already being suppressed by volatility. “Without certainty, businesses do not invest, households prefer to save rather than spend, and this further weakens prospects for already weakened growth.”
While no formal bilateral meetings have been announced during this week’s IMF and World Bank summits in Washington, Chinese officials are attending alongside US and G20 counterparts. Any encounter between trade teams would mark the first direct engagement since Trump’s tariff hike.
