China Warns U.S.: No Talks Without Respect
Beijing will only return to the negotiating table with Washington if the U.S. shows “mutual respect,” according to Zhu Guangyao, China’s former Vice Minister of Finance.
In an interview from Singapore, Zhu said talks over President Donald Trump’s escalating reciprocal tariffs must reflect a “win-win mindset” and peaceful coexistence—not one-sided conditions.
“If the U.S. wants China to totally accept the U.S. proposal, to accept the U.S. conditionality, I think there’s no negotiation,” Zhu stated bluntly.
Tariffs Bring U.S.-China Trade to a Standstill
The standoff comes as both nations implement historic tariff hikes. U.S. tariffs on Chinese imports have soared to 145%, while China has slapped a 125% tariff on American goods. Economists warn the trade war may grind trade between the world’s two largest economies to a near halt.
The tariffs add new pressure to an already fragile Chinese economy, burdened by deflation, sluggish consumer demand, and a lingering property crisis. UBS Group AG has slashed its 2025 China growth forecast to 3.4%, citing diminished exports due to U.S. trade pressure.
Despite these challenges, Zhu remains confident. He said China is on track to meet its 5% growth target for 2025, the final year of its 14th Five-Year Plan, and has “full capacity” to stimulate domestic consumption if needed.
Former Negotiator Urges Diplomacy, Warns Against Coercion
Zhu, who played a key role in past U.S.-China trade negotiations and served as deputy finance minister until 2018, emphasized that coercion and threats would be ineffective.
“Chinese officials are open to negotiation, but not under pressure,” he said, echoing Beijing’s long-held position.
U.S. Trade Representative Jamieson Greer noted last week that Trump still expects talks “at some point,” though “we’re not there yet.” Trump, for his part, said he is waiting for China’s call, and reiterated his “great respect” for Xi Jinping—while underscoring his preference for leader-to-leader diplomacy.
Could China Sell U.S. Debt?
When asked if China might retaliate by offloading U.S. Treasuries, Zhu downplayed the notion but didn’t rule it out. China holds approximately $700 billion in U.S. debt, making it the second-largest foreign creditor after Japan.
“China is a very responsible investor,” Zhu said. “This is based on mutual understanding, mutual respect and mutual cooperation.”
Still, the former official warned that further economic coercion from Washington could backfire. Without goodwill on both sides, he cautioned, meaningful dialogue would remain elusive.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
