Amid the high-stakes escalation of the U.S.-China tariff war, both nations are inching toward the negotiating table, with President Donald Trump openly admitting his readiness for talks and China appointing a new trade negotiator, signaling its readiness to engage.
The appointment of Li Chenggang, a seasoned diplomat with a legal background, to replace veteran negotiator Wang Shouwen on Wednesday suggests Beijing is gearing up for serious dialogue, though it insists on talks free from pressure. As the world’s two largest economies grapple with tariffs, 145% on Chinese goods from the U.S. and 125% on U.S. goods from China, disrupting over $650 billion in trade, the stakes for a resolution have never been higher.
The tariff war reignited under Trump’s second term, has sent shockwaves through global markets, erasing nearly $6 trillion from the S&P 500 in early April and prompting Goldman Sachs to warn of a significant chance of a U.S. recession. From Boeing’s halted jet deliveries to Chinese airlines to soaring costs for American farmers, the conflict is hitting industries hard. China’s 125% tariffs have doubled the price of U.S. goods, while U.S. levies threaten China’s export-driven economy, which grew 5.4% in Q1 2025 but faces headwinds from prolonged trade barriers.
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The dispute extends beyond tariffs, intertwining with issues like fentanyl, Taiwan, and TikTok, complicating the path to a deal. Yet, amid the economic carnage, both sides are showing tentative signs of willingness to talk, setting the stage for what could be a pivotal moment in U.S.-China relations.
President Trump has made no secret of his desire to sit down with Chinese President Xi Jinping to hash out a trade deal. Speaking from the White House on Tuesday, Trump said he’s “optimistic” about a resolution but insisted Beijing must make the first move, claiming China “needs our money” to keep its economy afloat.
“The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” said a statement from Trump read out by Press Secretary Karoline Leavitt. The President also accused China of reneging on a “big Boeing deal” that has seen the shares of the airline company tank.
The invitation fits Trump’s broader trade strategy: wielding tariffs as a cudgel to extract concessions. The U.S. has launched a 90-day sprint to negotiate bilateral deals with over 75 countries, granting temporary tariff exemptions to allies like Japan, South Korea, and the EU. China, however, faces the full brunt of 145% levies, a pressure tactic Trump hopes will force Beijing to the table. White House press secretary Karoline Leavitt underscored Trump’s approach, saying he’s prepared to be “gracious” but expects China to act first.
China’s Open to Dialogue, but Not Under Duress
China has struck a delicate balance between defiance and diplomacy. Beijing has vowed to “fight to the end” against what it calls “unilateral” U.S. tariffs, with its commerce ministry on April 8 rejecting negotiations under “pressure, threats, or blackmail.” However, by April Monday, Foreign Ministry spokesperson Lin Jian hinted at flexibility, saying China could roll back its 125% tariffs if the U.S. engages in talks based on “equality, respect, and mutual benefit.”
China’s actions speak louder than its rhetoric. On April 9, Beijing filed a WTO complaint, accusing the U.S. of violating trade rules, a move that underscores its intent to fight on legal grounds. Meanwhile, President Xi Jinping’s Southeast Asia tour, bolstering trade ties with Vietnam, Malaysia, and Cambodia—signals a strategy to diversify partnerships amid U.S. pressures. Accompanied by Commerce Minister Wang Wentao, Xi’s tour highlights China’s determination to maintain economic momentum, even as tariffs threaten its export-driven growth.
Li Chenggang, A New Face at the Table
In a surprise move on Wednesday, China named Li Chenggang, 58, as its new vice minister of commerce and top trade negotiator, replacing Wang Shouwen, a hard-nosed veteran who helped broker the 2020 U.S.-China trade deal. Li, a former WTO ambassador with a law degree from Peking University and a master’s from the University of Hamburg, brings a legal and diplomatic edge to the role. His tenure at the WTO, where he criticized U.S. tariffs as “arbitrary” in February 2025, and his experience in the commerce ministry’s treaties and law divisions make him well-suited to navigate the legal complexities of the current dispute.
The appointment, announced by China’s human resources ministry, has raised eyebrows for its timing—coinciding with Xi’s regional tour and the tariff war’s peak.
“It’s very abrupt and potentially disruptive,” said Alfredo Montufar-Helu, a senior adviser at The Conference Board’s China Center, noting Wang’s deep experience.
Wang’s removal from the commerce ministry’s leadership roster, with no new role disclosed, has fueled speculation. Some see it as a recalibration to signal flexibility, others as a risk to China’s negotiating continuity. Regardless, Li’s appointment suggests Beijing is serious about engaging, likely leveraging WTO frameworks to challenge U.S. tariffs and seek a resolution.
The Tariffs Ripple Effect on Trade and Industry
The U.S.-China tariff war is reshaping global trade. While the U.S. courts deal with allies, China’s isolation, facing the full weight of tariffs, amplifies the pressure for a deal. Industries are feeling the pinch: Boeing’s stock has slumped 12% this year partly because Chinese airlines like China Southern halted jet deliveries and used aircraft sales. American farmers and manufacturers face similar woes, while Chinese exporters grapple with soaring costs in the U.S. market.
The economic fallout is stark, even beyond the U.S. and China. China’s 5.4% Q1 growth, driven by exports, is at risk, and the U.S. faces inflation and recession fears. Beyond economics, the dispute complicates bilateral issues, with Trump linking trade to fentanyl crackdowns and TikTok’s fate. China’s non-tariff measures, like curbing Hollywood imports and slowing rare earth exports, complicate the matter.
The EU, Vietnam, India, and Japan are negotiating U.S. trade deals, capitalizing on their tariff exemptions. EU chief Ursula von der Leyen told German weekly Die Zeit that the European Union was “setting out our position clearly, and the Americans are doing the same.”
China, meanwhile, is doubling down on Southeast Asia, with Xi’s tour a clear bid to shore up regional alliances.
As of Wednesday, U.S.-China tariff talks are gaining traction, with Trump’s invitation and China’s new negotiator creating a window for dialogue. Li Chenggang’s legal acumen and WTO experience suggest Beijing is preparing for robust negotiations, likely challenging U.S. tariffs through international frameworks. However, Trump’s demand for China to initiate contact and Beijing’s rejection of pressure set the stage for a contentious process.