TOKYO -- China on Thursday said it is not currently negotiating with the U.S. on trade, just after President Donald Trump said the two sides were in direct contact.
At the Ministry of Foreign Affairs' regular briefing, Guo Jiakun was asked about American suggestions that talks were ongoing and that a deal on tariffs could be coming. "None of that is true," Guo replied. "China and the U.S. are not having consultations or negotiations on tariffs, still less reaching a deal."
After Trump unveiled "reciprocal" tariffs on April 2, the rival superpowers entered a cycle of rapid-fire retaliation that sent new U.S. levies on Chinese goods soaring to 145% while Beijing's retaliation on American products hit 125%.
"This tariff war was launched by the U.S.," Guo said. "China's position is consistent and clear. We will fight if fight we must. Our doors are open if the U.S. wants to talk. Dialogue and negotiation must be based on equality, respect and mutual benefit."
China's Ministry of Commerce issued a similar denial of negotiations.
Trump, when asked by a reporter in Washington on Wednesday if the two sides were communicating, had said: "Yeah, of course. Every day."
The U.S. administration this week noticeably softened its tone on China -- seen as a response to widespread concern about economic and market damage a trade stoppage could entail. Trump promised that the U.S. would be "very nice" to China in talks, and that the tariff rate would "come down substantially" when the countries make a deal, although it "won't be zero."
China's denial risks throwing cold water on investor hopes that the trade war might de-escalate as quickly as it escalated.
Michael Hirson, head of China research at New York-based 22V Research, said in a note that much depends on how the Trump administration reaches out.
"If President Trump de-escalates without prior conditions -- such as by postponing recent tariff increases on China while the two sides enter into negotiations -- we would expect Beijing to reciprocate," Hirson wrote. "However, if Trump demands upfront actions by Beijing in return for a tariff postponement/rollback, he may be waiting quite a while."
Underscoring the risk of the latter scenario, Hirson pointed to Treasury Secretary Scott Bessent's comments this week at an event in Washington, where he suggested that the U.S. was not offering to change course unilaterally.
The analyst argued that while Chinese President Xi Jinping is less susceptible to political pressure and can offset some of the impact with stimulus policies, Trump has sent tariffs so high that the U.S. now faces "higher bills for households, but also major problems for many manufacturers, retailers, and logistics firms as shipments from China are curtailed."
"The reality, if President Trump chooses to accept it, is that he is not in a favorable bargaining position with Beijing right now."