China’s Commerce Minister Wang Wentao on Friday said recent trade talks with the United States have made significant progress, signalling that a return to a tariff war is unnecessary and avoidable if both sides maintain constructive engagement.
Speaking to reporters, Wang expressed optimism that China-U.S. trade relations could be steered back to stability, especially after recent high-level negotiations in Geneva and London. He emphasized that dialogue and cooperation have proven effective in resolving differences and managing tensions.
“Major countries should act like major countries. They must shoulder their responsibilities,” Wang said, urging the U.S. to behave in a manner befitting a global superpower while reaffirming that China would continue to safeguard its national interests.
The two countries are facing an August 12 deadline to finalize a long-term tariff agreement following a preliminary deal struck last month. Without a permanent accord, punitive tariffs exceeding 100% could come into effect, potentially disrupting global supply chains.
Wang noted that U.S.-China interdependence remains deep, with many traded goods and services being “irreplaceable or difficult to substitute in the short term.” He also highlighted the rising 32% month-on-month increase in China’s rare earth exports in June, attributing the growth in part to recent agreements aimed at easing restrictions on these critical materials.
On Thursday, Wang met with Nvidia CEO Jensen Huang in Beijing, after the company announced it would resume selling its H20 AI chips to China. The development is seen as a breakthrough linked to ongoing rare earth negotiations. U.S. Commerce Secretary Howard Lutnick confirmed the move as part of broader trade talks.
“Forced decoupling is impossible,” Wang said, adding that the U.S. tariff burden on Chinese imports remains high at 53.6%, a level that analysts say could cripple Chinese manufacturers if additional duties are imposed.
“China does not want a trade war, but it is not afraid of one,” Wang reiterated. “We will continue to strengthen dialogue, deepen consensus, and enhance cooperation to ensure the healthy, stable, and sustainable development of China-U.S. economic and trade relations.”
Written By Rodney Mbua
