China has expressed full confidence in its ability to manage U.S. trade issues as officials from both nations prepare for crucial weekend talks in Switzerland, marking the first major face-to-face negotiations amid the ongoing trade war.
What Happened: “We have no fear,” Chinese Vice Foreign Minister Hua Chunying told Reuters on Friday at a middle school in rural southwestern China. She insisted that the President Donald Trump administration’s trade policy “cannot be sustained” while emphasizing China’s readiness to overcome all difficulties.
The weekend discussions will bring together U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer with China’s Vice-Premier He Lifeng from May 9-12. Trump signaled potential concessions Thursday, suggesting the 145% tariffs on Beijing would likely come down.
However, China’s commerce ministry issued a stern warning against using dialogue as “a tactic for further coercion.” The ministry stated China agreed to the discussions only after “taking into full account global expectations, China’s interests, and the appeals of U.S. industries and consumers,” adding they will “fight to the end” if necessary.
Why It Matters: The tariffs come at a particularly challenging time for China’s economy. The country is struggling with deflation due to slow economic growth and a persistent property crisis. April data shows China’s manufacturing activity contracting for the first time in three months, with the official manufacturing Purchasing Managers’ Index falling to 49.0, marking its weakest performance since mid-2023.
According to Vizion, a container tracking service, booking volumes from China to the U.S. for the week of April 14 fell by 45% compared to the same week last year.
A recent poll indicates the trade war has impacted Trump’s approval ratings among young Americans dissatisfied with rising prices caused by tariffs. Meanwhile, billionaire hedge fund manager Bill Ackman shared his belief that the dispute will ease soon, calling the tariffs “a one-time reset,” not a trigger for sustained inflation.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
