"Inside China's decision to come to the table on Trump tariffs"

As noted in the earlier post, "China Sends Xi’s Security Czar to Trade Talks With U.S.":

It appears the Chinese delegation will be in Geneva to do more than just negotiate the dimensions of the table for the next meeting.*

 

From Reuters, May 9:

• China's economic concerns prompt trade talks with Trump team, officials say
• Geneva talks highlight deep mistrust between US and China
• Easing of Trump's rhetoric cleared path for talks, officials say
• US letter to China on fentanyl created friction, officials say

Since U.S. President Donald Trump imposed steep tariffs on China last month, Beijing has responded in kind. On state and social media, it posted images of Mao Zedong, lambasted "imperialists," and sent a message: capitulation to bullies is dangerous, and it wouldn't back down.

 

But behind closed doors, Chinese officials have grown increasingly alarmed about tariffs' impact on the economy and the risk of isolation as China's trading partners have started negotiating deals with Washington, according to three officials familiar with Beijing's thinking.

 

These factors, along with outreach by the U.S. and an easing of Trump's rhetoric, persuaded Beijing to send its economic tsar He Lifeng for meetings with U.S. counterparts in Switzerland this weekend, the officials told Reuters.

 

Re-engagement was complicated by the fractious nature of U.S.-China diplomacy. In particular, Beijing considered a letter the U.S. side sent to Chinese ministries in late April about fentanyl "arrogant," two officials said. Efforts to arrange talks were further impaired by disagreements over which officials should be involved, said one of these people and another official.

 

China's reasons for deciding to negotiate, Washington's letter on fentanyl, U.S. diplomatic challenges in Beijing, and the early outreach between the two sides are reported by Reuters for the first time, based on interviews with nearly a dozen government officials and experts on both sides. Most of the people were granted anonymity to discuss non-public information.

China's foreign ministry said in a statement to Reuters that it reiterated that "China's firm opposition to the U.S. abuse of tariffs is consistent and clear, and there is no change."

 

"The U.S. has ignored China's goodwill and unreasonably imposed tariffs on China under the pretext of fentanyl. This is a typical act of bullying, which seriously undermines dialogue and cooperation between the two sides in the field of drug control."

China's State Council and ministry of commerce, and the White House did not immediately respond to requests for comment.

 

In response to Reuters' questions about the lead-up to the Geneva talks, the U.S. State Department said it and the U.S. Embassy in Beijing "continue to regularly engage Chinese counterparts to advance the interests of the American people."

 

China's Vice Foreign Minister Hua Chunying said on Friday that China has full confidence in its ability to manage U.S. trade issues, adding that the Trump administration's approach cannot be sustained.

 

The trade war between the world's two largest economies, combined with Trump's decision last month to impose duties on dozens of other countries, has disrupted supply chains, unsettled financial markets and stoked fears of a sharp downturn in global growth.

 

Chinese export restrictions, meanwhile, have squeezed the supply of critical minerals the U.S. needs for weapons, electronics and consumer goods. Trump's approval ratings are falling due to his handling of tariffs and the economy.

 

The volatile run-up to the Geneva talks underscores the deep mistrust and divergent negotiating styles between the Trump team and China, which could make for protracted and fraught discussions.

"Both sides I think are balancing trying to look tough with not wanting to be responsible for sinking the global economy," said Scott Kennedy, an expert in Chinese business affairs at the Center for Strategic and International Studies in Washington.

 

"The Chinese set a high bar for these talks, but it became increasingly clear that the Trump administration wanted to talk, and they couldn't say no forever. So, they've accepted what are probably best seen as pre-negotiations in Geneva."

FROM MINISTER TO TSAR
After Trump's tariff salvo last month, China took a hard line in its public messaging. Beijing posted footage on its official social media feeds of a Chinese MiG-15 fighter shooting down a U.S. jet in the Korean War, with commentary: "China won't kneel down, because we know standing up for ourselves keeps the possibility of cooperation alive, while compromise snuffs it out."....

....MUCH MORE