Xi Jinping's China Says 'Door Is Open' For Talks While It Is 'Assessing' US Trade Proposal, But Warns 'Coercion' And 'Extortion' Won't Work

In a potential move towards de-escalation, China’s Commerce Ministry is said to be ‘assessing’ a U.S. offer to discuss the crippling 145% tariffs imposed by President Donald Trump.

What Happened: The U.S. has extended an olive branch to Xi Jinping‘s China, proposing talks over the tariffs that have significantly disrupted global markets. The Chinese Commerce Ministry has confirmed its willingness to engage in discussions but insists that the U.S. must be prepared to rectify “erroneous practices” and revoke unilateral tariffs, reported Xinhua News on Friday.

The Ministry underscored the importance of “sincerity” in these negotiations from Washington, stating, “Attempting to use talks as a pretext to engage in coercion and extortion would not work.”

“China will fight to the end and for talks, the door is open,” added the Ministry.

On Wednesday, President Trump voiced optimism about a potential deal with China earlier this week, following a call to action from Chinese President Xi Jinping to adapt to changes in the international environment.

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Why It Matters: The tariffs have hit China during a difficult period, as the country struggles with deflation due to slow economic growth and a persistent property crisis. This development comes on the heels of China’s manufacturing activity contracting for the first time in three months in April, amid escalating trade tensions with the U.S. According to data from the National Bureau of Statistics, the official manufacturing Purchasing Managers’ Index (PMI) fell to 49.0, marking its weakest performance since mid-2023.

Sub-indexes for production and new orders both fell, with raw material and output prices also taking a hit. China’s non-manufacturing PMI also suffered a blow, while employment declined across most sectors. Amid these challenges, China released a video asserting it won’t “kneel down” to the U.S., highlighting the tension between the two economic powerhouses.

Meanwhile, according to Vizion, a container tracking service, booking volumes from China to the U.S. for the week of April 14 fell by 45% compared to the same week last year.

Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) declined 5.6% while the SPDR S&P 500 ETF (NYSE:SPY) lost 4.48% on a year-to-date basis, amid the uncertainty surrounding the U.S.-China trade war.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.