China Says Trade Talks Ease Need for New Tariffs

China’s commerce chief stated that the successful trade negotiations with the U.S. have decreased the need to bring back high tariffs while he stressed that Washington needs to demonstrate global power responsibility.

During his press conference on Friday Commerce Minister Wang Wentao explained how European negotiations demonstrated that diplomatic talks can resolve economic tensions between major economies. Major countries need to demonstrate their status as major powers according to Wang who expressed China's commitment to protect its interests through peaceful means.

The two nations need to complete their broader agreement before August 12 since they paused their tariff escalation last month. The failure to reach an agreement could trigger supply chain problems which would lead to duties exceeding 100%.

The 32% increase in Chinese rare earth exports during June serves as initial evidence that trade negotiations are producing positive results according to Wang. The U.S. officials linked Nvidia's decision to resume H20 AI chip sales in China to current trade negotiations.

The current U.S. tariffs on Chinese goods amount to 53.6% according to Wang who warned that additional increases would cut into Chinese manufacturing profits.

The meeting with Nvidia CEO Jensen Huang led Wang to declare that "Decoupling is not realistic." Both parties understand that constructive engagement stands as the exclusive solution to move forward.