China: 'Will Negotiate Trade If U.S. Shows Respect and Consistency, and Has Key Negotiator'

China's First Response to Trump's Repeated Calls

Criticism of Vance's China Derogatory Remarks, Demand for Authorized Key Negotiator

Offshore Yuan Rises, S&P 500 Futures Narrow Losses After Report

China is open to trade negotiations with the U.S. if the Trump administration shows respect for China and maintains consistency in its stance, Bloomberg reported.

On the 16th (local time), Bloomberg, citing sources familiar with the Chinese authorities' stance, reported that China, which has been responding strongly to Trump's tariffs, is willing to negotiate if the U.S. shows respect and consistency and demonstrates a willingness to address China's concerns about U.S. sanctions and Taiwan.

An anonymous source also stated that China wants a key negotiator who has the support of President Trump and can prepare an agreement that President Trump and Chinese President Xi Jinping can sign.

Following this news, the offshore yuan rose 0.2% against the dollar. S&P 500 futures recovered losses that had fallen as much as 1.6% in early pre-market trading.

As the U.S. imposed a 145% tariff, there was widespread public opinion in China about retaliatory measures. Late on the 15th U.S. local time, President Trump once again requested that China contact them to start negotiations to resolve the trade dispute.

Both sides have indicated openness to negotiations, but while President Trump wants to speak with President Xi immediately, China wants clear results from the dialogue between the leaders.

Even if procedures are agreed upon, it remains questionable what form any agreement will take. According to President Trump's claims, high tariffs on China are inevitable to attract manufacturing back to the U.S.

Societe Generale's China economist Michelle Lam said that both the U.S. and China want lower tariffs due to domestic pressure, but it is unlikely that negotiations will lead to meaningful tariff reductions.

According to sources, the most important precondition for the talks is that Chinese officials must know that they will be conducted with respect. The source said that while President Trump is dovish when speaking publicly about Xi Jinping, other members of the administration are hawkish, leaving Chinese officials unsure about the U.S. stance.

Recently, Chinese Foreign Ministry spokesperson Lin Jian criticized U.S. Vice President JD Vance's remarks about Chinese farmers as "ignorant and rude," expressing great displeasure.

Chinese officials also want to confirm whether the U.S. is prepared to address some of China's concerns, the source said.

The most important concern among Chinese officials is the belief that the U.S. is implementing policies to suppress and contain China's modernization. In recent years, the U.S. has strengthened export controls to prevent China from acquiring advanced technologies such as cutting-edge chips.

Additionally, China wants to address national security concerns, including Taiwan, the source said. China claims Taiwan as part of its territory and has promised to take action, including military measures if necessary, in case of provocation.

Finally, the Chinese government wants a key figure designated to oversee talks who can speak and act with the authority of President Trump, the source said.

Chinese officials also believe that while President Trump may want to lead the negotiations directly, it is best for officials appointed by the leaders of both countries to oversee the negotiations. This, he said, is the most effective way to conclude with a meaningful summit between President Trump and President Xi Jinping.

Guest Reporter Kim Jung-ah kja@hankyung.com