“China will not hesitate to inflict pain upon the U. S.,” said Chen Wenling, chief economist at the China Center for International Economic Exchanges.
BEIJING — President Donald Trump may believe that China will eventually wave the white flag in a trade war, but his posture is inviting only more resistance from Beijing, where skepticism of his administration’s ability to negotiate in good faith is growing.
“Our U. S. counterparts need to assure us they will abide by any agreement,” said Yu Dunhai, deputy director general at China’s Ministry of Foreign Affairs. “How can we trust them next time?”
The question was raised just before China announced that it would accept an invitation to begin a fresh round of talks, reportedly initiated by Treasury Secretary Steven Mnuchin.
“China always believes that an escalating trade conflict serves no one’s interests,” Chinese Foreign Ministry chief spokesman Geng Shuang said during a news conference on Thursday.
Despite the official response welcoming new talks, there is little indication that the government in Beijing is ready to change its practices or give in to U. S. demands. The close relationship between state-owned companies and government should make it easy for China to institute quickly new policies on U. S. criticisms over mandatory technology transfers or intellectual property. Yet nothing has been offered publicly indicating that Chinese officials are willing to adapt their approach.
Questions also still linger over who in the Trump administration is in a position to effectively negotiate on behalf of the president.
“Not only my country but many other countries feel confused about who to talk to,” Yu said.
Trump’s comment downplaying reports of Mnuchin’s efforts to re-engage with China was just the latest example of confusion over who has the authority to make trade deals.
“We are under no pressure to make a deal with China, they are under pressure to make a deal with us,” Trump tweeted on Thursday. “Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home. If we meet, we meet?”
Distrust in Beijing is also running high after Trump trashed an agreement struck in May in which China offered to quell trade tensions by agreeing to import vast amounts of U. S. farm goods and natural gas.
“Very clearly there was agreement,” said Yu, who participated in the talks led on the Chinese side by Vice Premier Liu He.
Chinese academics linked to the government say there is a growing recognition that the U. S.’ existential crisis over China’s economic ambitions will not lend itself to an easy solution if, or when, the two countries meet again.
