China: Trade War Is No Longer Needed If Negotiations With The US Are Successful

Chinese Trade Minister Wang Wentao/PHOTO Claudio Centonze via Wikimedia Commons

Chinese Trade Minister Wang Wentao said his country wanted to restore its trade relations with the United States (US) to a stable position.

Recent negotiations in Europe show the need for a tariff war, as well as urging the US to act as a superpower.

China's Trade Minister told reporters on Friday, July 18, the "installation" of relations between the two countries underscores their mutual economic dependence.

"Large countries must act like big countries. They must bear their responsibility," said Wang Wentao, stressing that China would protect its national interests.

China faces a deadline of August 12 to reach a continued tariff deal with the United States, after Beijing and Washington reached an agreement early last month to end a weeks-long intertwining escalation of tariffs.

If an agreement is not reached, the global supply chain could face new turmoil due to import duties exceeding 100%.

Wang said negotiations in Geneva and London earlier this year showed there was no need to happen again.

"Practices have proven that through dialogue and consultation, with leadership and communication at the highest level, we can manage contradictions and resolve differences well," he said.

"We will continue to strengthen dialogue and communication, deepen consensus, reduce misunderstandings, increase cooperation, to jointly restore economic relations and trade between China-US to the right path in order to achieve healthy, stable, and sustainable development," he continued.

China's rare earth metal exports rose 32% on a monthly basis in June, customs data showed on Monday.

This is a sign of a deal reached last month in London to free up the metal stream is likely to pay off.

Nvidia's chip maker (NVDA.O) will also continue selling its H20 AI chip to China, CEO Jensen Huang said at an event in Beijing this week, a move that US Commerce Secretary Howard Lutnick said was also part of negotiations over rare earth metals.

Wang said the overall rate imposed by the US on China is currently "still high" at 53.6%.

Analysts say additional import duties that exceed 35% are likely to erode the Chinese manufacturer's profit margin.

"Both parties have understood that they need each other, because many of the goods and services we exchange are irreplaceable, or at least difficult to exchange in the short term," Wang said.

"Childs don't want trade war, but don't be afraid of trade wars," he stressed.