China is preparing a proposal to start negotiations with the US, after Mr Trump imposed a 10% tariff on Beijing's goods, sources said.
US President Donald Trump meets Chinese President Xi Jinping at the G20 Summit in Japan in 2019 - Photo: REUTERS
On February 3, Vietnam time, the Wall Street Journal (WSJ) cited sources saying that China's initial proposal would focus on restoring the "Phase 1" trade agreement, signed in 2020 during Trump's first term.
Opportunity for China to negotiate
Other parts of China's plan would include a pledge not to devalue the yuan, an offer to invest more in the United States and a commitment to reduce exports of fentanyl precursors.
Last weekend, US President Donald Trump decided to impose a 25% tariff on imports from Mexico and most imports from Canada, and a 10% tariff on goods from China.
In response, China criticized the tariffs and announced that it would file a complaint against the US at the World Trade Organization (WTO). However, Beijing still left the door open for negotiations with Washington to avoid deeper conflicts.
According to observers, with a 10% tax rate, there is still a chance for China to negotiate to prevent the government from raising tariffs and restricting technology from the US.
The Phase 1 trade deal that Mr Trump signed with Beijing in 2020 ended a tariff war that had lasted nearly two years at the time.
The deal required China to increase its purchases of US exports by $200 billion over two years, but Beijing fell short of that target due to the COVID-19 pandemic.
The US and Chinese Departments of Commerce have not commented on this information.
Regarding the TikTok platform, the WSJ reported that Beijing will treat TikTok as a "commercial issue," meaning it will allow investors in parent company ByteDance to negotiate a deal with parties in the US.
Trump has previously said he is in talks with multiple parties about buying TikTok, including Microsoft.
India holds its breath
On February 2, Indian Finance Minister Tuhin Kanta Pandey stated that New Delhi has no intention of showing any signs of protectionism, in the context of President Donald Trump tightening tariff policy. "Our position is that we do not want to increase protectionism," Mr. Pandey emphasized.
In his recent moves, Mr. Trump did not target India, although last year he criticized the country for abusing tariffs that hurt American companies.
According to Mr. Pandey, India has cut import tariffs, reduced customs duties on many items such as raw materials for domestic industries such as textiles and automobiles.
“We should send the right signal to the world as well as to our industry,” he said, explaining that the initial tariff measures were intended to help domestic companies, but would be phased out as those industries developed.
Trade and immigration issues are expected to be at the forefront when Indian Prime Minister Narendra Modi meets Mr Trump this month.
Source: https://tuoitre.vn/wsj-trung-quoc-de-xuat-thoa-thuan-thuong-mai-voi-ong-trump-20250203150900704.htm
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