China intends to start trade negotiations with United States

By Alimat Aliyeva

China intends to begin trade policy negotiations with the United States, based on agreements made with the first administration of U.S. President Donald Trump in 2020, Azernews reports.

According to sources, in order to avoid a full-scale trade war, China aims to return to the "Phase One" agreements reached during Trump’s first term, which included commitments to increase imports from the United States by $200 billion. Beijing plans to negotiate within the framework of the World Trade Organization (WTO) and is also looking to boost investments in the U.S. economy, particularly in electric vehicle battery production. Furthermore, China intends to abandon the artificial depreciation of the yuan, as reported by the Wall Street Journal (WSJ).

Earlier, the Ministry of Commerce of the People's Republic of China stated that it would file a complaint with the WTO over the U.S.'s imposition of tariffs on Chinese goods. The ministry also expressed hope that the United States would "objectively and rationally address its internal issues, rather than threatening other countries with tariffs."

Trump signed an executive order imposing tariffs on goods from Canada, China, and Mexico. According to the order, duties of 25% were placed on imports from Mexico and Canada, with 10% tariffs specifically on Canadian energy resources. In addition, a 10% tariff was imposed on goods from China. Together, Canada, China, and Mexico represent about a third of all goods and services imported by the United States. In 2023, the combined exports from these three countries to the U.S. amounted to nearly $1.5 trillion.

This trade shift highlights the ongoing complexity of U.S.-China relations and the broader international trade landscape. As both nations navigate the fallout from the trade war and look for ways to stabilize their economic interactions, the outcome of these negotiations could significantly influence global markets and international trade dynamics in the coming years. Interestingly, this also underscores the importance of multilateral forums like the WTO, where both sides may seek common ground amidst the growing challenges of global supply chains and shifting economic power.