China is ready to engage in negotiations with the Trump administration regarding potential investments in the US following the imposition of 10% tariffs by the president. The aim is to avoid escalating a trade war, with Beijing looking to revisit the Phase One trade agreement signed in 2020 but never implemented.
The deal would involve China increasing purchases of American goods and services by $200 billion over two years. While the agreement was never put into effect, China is now willing to reopen discussions to explore areas where they can increase their imports from the US.
Arthur Kroeber, a leading expert on China’s economy, expressed that the Chinese government is eager to negotiate a deal to counter the US tariff imposition rather than seeking substantial gains. The objective is to ease tensions and find common ground for cooperation.
In a positive development, China is also considering treating TikTok as a commercial matter in the negotiations. President Trump had previously suggested splitting TikTok equally between the US and China, and sources familiar with the discussions indicated that China may allow US investors to directly engage with TikTok’s parent company, ByteDance.
However, the crucial question remains whether China would be willing to relinquish TikTok’s algorithm, a key asset that has been at the center of the controversy surrounding the popular social media platform.
In response to Trump’s tariff decision, China plans to challenge the move at the World Trade Organization, citing violations of international trade rules. The Chinese commerce ministry emphasized the importance of open dialogue and cooperation to address trade issues between the two nations.
In a separate development, Trump also announced tariffs on imports from Canada and Mexico, in addition to those from China, as part of efforts to curb the flow of fentanyl into the US. The move underscores the complexity of international trade relations and the need for diplomatic solutions to address trade disputes effectively.
