Beijing is preparing to present a trade proposal aimed at avoiding tariffs imposed by U.S. President Donald Trump, according to the Wall Street Journal (WSJ). Although the tycoon has indicated he will hold talks with Chinese officials in the coming days, he does not rule out the possibility of implementing tariffs.
China would be willing to increase purchases of U.S. goods by a total of $200 billion over a two-year period to counteract the current trade deficit, which favors Beijing. The Asian country seeks to avoid tariffs and technological restrictions, showing a willingness to negotiate with the United States.
"China is in a weak economic situation, and its leader, Xi Jinping, has expressed interest in negotiating with Trump, who has also suggested that he is open to dialogue," the newspaper pointed out. In response to tariffs as a pressure measure, China has reacted cautiously, promising reprisals to protect its rights and interests, filing a complaint with the World Trade Organization over U.S. unlawful practices.
In this context, the possibility of restoring the 2020 trade agreement and discussing which products China can purchase from the United States, as well as the investments it can make in specific sectors, is on the table. Beijing promises not to devalue the yuan or reduce exports of fentanyl precursors. TikTok would also be part of the negotiations, with the proposal to share control of the application with U.S. investors.
The relationship between Trump and Beijing has been tense, with the imposition of tariffs by both sides. Despite a preliminary agreement in 2020 that was not implemented, China is now seeking to strengthen its economy in the face of internal challenges. The intensification of the trade war could have positive impacts for China, which seeks to tighten ties with Washington's traditional allies. With new partners in the Global South and regional free trade agreements, China continues to seek balance in its economy.
