China, US maintain dialogue ahead of trade talks


FILE PHOTO: U.S. and Chinese flags are seen in this illustration taken, January 30, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

CHINA is maintaining continuous communication with the United States ahead of the sixth round of trade talks that is expected to convene soon, the Ministry of Commerce said at a news conference on Thursday, underscoring Beijing's efforts to keep bilateral economic ties on a stable footing.

The ministry said that through equal-footed consultations, China is willing to work with the US to properly manage differences and expand practical cooperation, and promote stable and sustainable economic and trade relations.

The ministry's remarks come as the upcoming talks between Beijing and Washington draw wide attention, with analysts suggesting that the discussions may focus on stabilising trade relations, extending the previously reached consensus and laying the foundation for future cooperation.

Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said that the upcoming trade talks will likely focus on extending or adjusting previously reached short-term consensus measures, while exploring new pathways for cooperation.

Bai added that key negotiation priorities might include China's demand for the US to abandon its unfair practices of strangling China's high-tech industries, and Washington's hope for Beijing to further relax restrictions in areas such as strategic materials.

Studies by both Chinese and US financial institutions and think tanks have debunked a long-standing perception in the White House that high tariffs would force foreign exporters to slash prices and bleed profits to protect US economic interests.

A report released on Wednesday by Chinese securities brokerage firm China Securities Co, found that the "pass-through rate" of US tariffs in 2025 stood at 92 percent. This means that for every $100 in additional tariff costs, US importers were forced to absorb $92. The report showed that specifically for China, which faced a cumulative tariff increase of about 26 percentage points last year, the highest among all US trading partners, the pass-through rate was 94 percent. Chinese exporters lowered their US dollar-denominated prices by a mere 2.5 percent.

The findings align with a report from the Federal Reserve Bank of New York earlier this month that showed that roughly 90 percent of the economic burden from the tariffs imposed by US President Donald Trump's administration in 2025 was shouldered by US consumers and businesses, not foreign exporters.

The Tax Foundation, a think tank based in Washington, DC, also estimated on Monday that the 2025 tariffs amounted to an average tax increase of $1,000 per US household.

On Feb 20, the US Supreme Court ruled that the Trump administration lacked constitutional authority to impose broad-based tariffs under the emergency powers law, invalidating the "fentanyl tariff" and "reciprocal tariff" on Chinese goods. However, Washington moved quickly to impose temporary import surcharges for up to 150 days under Section 122 of the Trade Act of 1974, which took effect on Tuesday.

"China will take all necessary measures to resolutely safeguard its legitimate rights and interests should the US insist on advancing relevant investigations," a spokesperson for the Ministry of Commerce said on Wednesday. - Chian Daily/ANN

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China , US , negotiation , tariffs , economy , Federal Reserve

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