China Seeks Diplomatic Talks With US Following Trump's Threat of New Tariffs to Avoid Trade War

Trump's proposed 10%-60% tariffs could either impact global demand or boost US-China trade.

By Thea Felicity

Nov 07 2024, 11:10 AM EST

FILES-DECADE2010-POLITICS-MIGRATION-CLIMATE-ECONOMY-CONFLICT — (FILES) In this file photo taken on June 28, 2019, China's President Xi Jinping (R) shakes hands with US President Donald Trump before a bilateral meeting on the sidelines of the G20 Summit in Osaka. - From the Arab Spring to bloodletting in Syria, from Obama to Trump, from terror in the streets of Paris to Brexit, the 2010s began with hope for a more equitable world, and end with a slide towards nationalistic populism. BRENDAN SMIALOWSKI/AFP via Getty Images

As Donald Trump secures a second time in office, countries tied to its trade regulations are finding ways to be included in the Republican president's 'America First' policy.

One of the most affected would be China, following EU tariffs that threatened Chinese automakers from being global.

After Trump's win, the country's Ministry of Commerce immediately called for renewed cooperation with the US to maintain stable economic relations, per CNBC. Trump previously proposed additional tariffs on Chinese goods, which could lead to trade restrictions, especially in the tech industry.

For China, the goal is to seek mutual respect and 'win-win' cooperation that will resolve the economic issues of both countries. A spokesperson specifically highlighted the potential benefits of improved communication not just for US-China relations, but also for the global economy. This echoes part of Xi Jinping's congratulatory statement recognizing the advantages of working together.

Trump's Policies for China

In his first term, Trump adopted a tougher stance on China with multiple tariffs introduced. Economists predict this approach will continue into his second term, this time, new tariffs will be enacted as early as next year. Trump could also use emergency powers to speed up the process, possibly impacting key industries tied to China.

For other experts, the impact will still be a win-win, as what China hopes to achieve. According to CNA, tariffs could encourage China to buy more American products, like soybeans.

For now, the trade relations between the countries are being received on a mixed basis. Some believe that a 60% increase won't critically impact multinational companies either way, but others think that even a 10% increase can harm the global economy right away due to slow demand for goods and services.

Regardless, there is still time for both countries to weigh the potential economic consequences of trade wars carefully, and Trump's decision is currently unpredictable considering the majority of the Senate are Republicans.