The ongoing trade war between China and the United States resembles a tense game of chicken, but currently, China isn’t interested in participating.
In response to statements from President Trump and his team suggesting that negotiations are underway and a deal could be imminent, China’s Foreign Ministry firmly contradicted this on Friday via a post on X: “China and the U.S. are NOT in any talks or negotiations. The U.S. needs to stop spreading confusion.”
This statement followed comments from ministry spokesman Guo Jiakun, who accused the U.S. of “misleading the public.” Just a day prior, Guo labeled the talk of negotiations as “fake news.”
The reaction indicates that China’s leader, Xi Jinping, plans to maintain a strong position against Trump, believing his standing is improving. Analysts suggest that Beijing thinks it can endure the hardships of the trade war better than the Trump administration, which faces political pressure and instability in the stock market.
“The Chinese are not keen to back down,” stated Yun Sun, the director of the China program at the Stimson Center in Washington. “They perceive that Trump is more inclined to retreat and are content to let him deal with the situation.”
Sun added that China won’t enter discussions without significant concessions from the U.S., which could involve reducing tariffs or indicating that Trump is the one initiating contact with Xi.
“China has the advantage, so why should they reach out?” she commented. “If the U.S. wants to engage, it will come at a cost.”
In a recent interview with Time magazine, Trump mentioned that Xi had reached out, indicating that they are both working towards a tariff agreement.
“I don’t think that indicates weakness on his part,” Trump remarked about Xi’s call, according to the article.
China has not confirmed any conversation between Xi and Trump since their call on January 17, just days before Trump took office.
This isn’t the first time Trump has claimed to have spoken with the Chinese leader after returning to office. In February, he told Fox News anchor Bret Baier that he and Xi had spoken after the January 17 call.
China, which has enacted significant tariffs on U.S. imports in retaliation, has consistently stated its readiness for trade discussions but insists they will not occur under pressure. Chinese officials have emphasized the need for the U.S. to show respect, warning that Beijing is prepared to “fight to the end” if needed.
This tough stance is part of Xi’s strategy to project strength against the Trump administration. He views himself as a transformative leader redeeming his nation from what he considers Western intimidation, particularly by the U.S.
Unlike during Trump’s initial term, China believes it is now better equipped for a trade war, having developed various economic strategies, such as export controls. Recently, in response to new U.S. tariffs, China restricted American access to key rare earth materials essential for producing missiles, batteries, and semiconductors. China plays a dominant role in the rare earth market, and alternatives for the U.S. may take years to establish.
“China views its control over rare earth minerals as a vital part of its trade war strategy against the U.S.,” explained Eswar Prasad, an economist specializing in international trade at Cornell University. “China understands that limiting access to these minerals would significantly disrupt U.S. high-tech manufacturing, inflicting considerable harm on the more innovative segments of the U.S. manufacturing industry.”
An extended trade war would challenge Xi’s leadership, potentially causing serious damage to the already fragile Chinese economy, which is grappling with a property crisis and declining consumer confidence. With exports being one of the few growth drivers for China, the U.S. remains its largest single export market.
As a potential indicator of the trade war’s impact, the Chinese government is reportedly considering excluding certain essential goods from its retaliatory 125 percent tariffs on American imports, including life-saving medications and other healthcare products, as noted by the American Chamber of Commerce in China.
