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China is showing willingness to engage in trade negotiations with the Trump administration following the president’s announcement of 10% tariffs, with discussions potentially including TikTok as part of broader talks, according to recent reports.
China to pitch return to 'Phase One' Trump trade deal after warning US to 'correct its wrongdoings' https://t.co/qOexr7z8Qv
— MDM (@ARascallion) February 3, 2025
As both nations seek to prevent an escalating trade conflict ahead of Tuesday’s tariff implementation, China is expressing interest in reviving a previously unsuccessful 2020 trade agreement, The Wall Street Journal reports.
The earlier Phase One agreement outlined plans for China to boost its procurement of American products and services by $200 billion across two years. Although this deal was signed during Trump’s first term, it never materialized. Now, Chinese officials are ready to use this framework as a starting point for new discussions about increasing their US purchases, according to sources familiar with China’s strategy.
“The Chinese would be very happy to get into deal negotiation,” Arthur Kroeber, a founding partner and head of research at Gavekal Dragonomics, an economic consulting firm that focuses on China, told the outlet. “The objective would basically be to blunt the US attack rather than gain anything material.”
In what appears to be a conciliatory move, Beijing is reportedly willing to treat the TikTok situation as a “commercial matter.” This approach would allow American investors to negotiate directly with ByteDance, TikTok’s parent company, regarding Trump’s proposal for an equal US-China ownership split. However, questions remain about whether China would relinquish control of TikTok’s algorithm.
China’s commerce ministry has expressed opposition to Trump’s tariff decision, stating that it “seriously violates” international trade rules. The ministry has called for “frank dialogue and strengthen cooperation” with the United States.
The tariff announcement came as part of Trump’s broader trade policy adjustments, which include 25% tariffs on Canadian and Mexican imports alongside the 10% levy on Chinese goods. Trump justified these measures by citing the need to stop the flow of fentanyl into the United States.