BEIJING: China’s commerce minister Wang Wentao said successful trade talks with the US in Europe demonstrate that a return to a tariff war is unnecessary.
He urged the US to act responsibly as a superpower while emphasizing China’s readiness to protect its interests.
Wang highlighted the economic interdependence between the two nations, stating, “Major countries should act like major countries.
They must shoulder their responsibilities.” He added that dialogue and high-level communication have proven effective in resolving disputes.
China faces an August 12 deadline to finalize a lasting tariff agreement with the US. Failure to reach a deal risks renewed supply chain disruptions, with potential tariffs exceeding 100%.
Wang noted that negotiations in Geneva and London earlier this year showed progress, making further trade conflicts avoidable.
“Practice has proven that through dialogue and consultation, with leadership and communication at the highest levels, we can properly manage contradictions and resolve our differences,“ he said.
Recent data showed China’s rare earth exports rose 32% month-on-month in June, suggesting easing trade restrictions.
Additionally, Nvidia’s decision to resume H20 AI chip sales to China reflects ongoing cooperation, as noted by US Commerce Secretary Howard Lutnick.
Wang described his meeting with Nvidia CEO Jensen Huang as evidence that forced economic decoupling is unrealistic.
“As the dust settles, everyone has come to the conclusion - especially the US side - that forced decoupling is impossible,“ he said.
Despite progress, US tariffs on Chinese goods remain high at 53.6%, with analysts warning that additional duties above 35% could severely impact Chinese manufacturers.
Wang stressed mutual reliance, stating, “Both sides have come to understand that they need each other.”
“China does not want a trade war, but it is not afraid of one,“ he reiterated. - Reuters
