 "China finally blinks in tariff war, says open to talks if President Trump shows respect")
China appears to have blinked in the ongoing trade war with US President Donald Trump.
As Trump raised tariffs on China to the tune of 145 per cent, China said it is ready to negotiate if Trump shows respect.
Showing respect to China is among the conditions that China has put in place for negotiations to start between the two countries, according to Bloomberg.
A person familiar with the Chinese thinking said that other conditions include a more consistent US position, a willingness to address China’s concerns around US sanctions and Taiwan, and the appointment of a Trump-endorsed US point person to hold bilateral talks on trade and tariffs.
The US point-person would lead talks and help prepare a deal that Trump and Chinese leader Xi Jinping may sign when they would meet, according to the report.
In response to Trump’s tariffs, China has slapped 125 per cent tariffs on the United States and has halted the export of critical and rare earth minerals along with magnets that are used in the production of a host of products, ranging from cars to electronics and weapon systems.
As China has near-monopoly on the supply of such critical and rare earths and magnets, the halt is expected to hit manufacturing outside of the country hard as most of the companies are not expected to have stocks that can outlast the trade war.
Even as China has indicated its openness to talk to the United States, Treasury Secretary Scott Bessent appeared to dismiss the idea in a recent interview.
Impact Shorts
More ShortsIn an interview with Yahoo Finance on Tuesday, Bessent said “let’s set aside China” and focus on ongoing trade talks with 14 other nations.
“There are 15 large trading partners. We set aside China. There are 14 and we’re in rapid motion and setting up a process for the 14 largest trading partners,” said Bessent.
He further said, “I think if we follow the process, we could have substantial clarity on those 14 away from China in terms of agreements in principle. And then once we reach a level that we’ve agreed on and they’ve agreed to lower their tariffs, lower their non-tariff barriers, currency manipulation, and subsidies of industry and labor, then I think we can move forward.”
Echoing the view that the onus remains on China, White House Press Secretary Karoline Leavitt separately said, “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them.”
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
