China Signals Openness to U.S. Trade Talks Amid Soaring Tariffs and Market Reaction

In a notable shift, China has indicated it is evaluating the possibility of restarting trade negotiations with the United States, marking the first sign of a potential thaw since President Donald Trump escalated tariffs last month.

The Chinese Commerce Ministry confirmed on Friday that it had observed multiple signals from senior U.S. officials expressing a willingness to re-engage in discussions and called on Washington to approach future talks with “sincerity.”

“The U.S. has recently sent messages to China through relevant channels, expressing a desire to start negotiations,” the ministry said in its statement. “China is currently assessing this.”

The announcement had an immediate impact on global markets. Futures on the S&P 500 Index reversed earlier losses in Asia, while the Hang Seng China Enterprises Index surged over 1%.

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The offshore yuan strengthened by about 0.3%, and the Australian dollar — often seen as a proxy for Chinese economic sentiment — also rose on the news. Meanwhile, mainland Chinese markets remained closed for a public holiday.

This development hints at a possible easing in tensions between the world’s two largest economies. The U.S.-China trade relationship hit a low point recently after Trump raised tariffs to their highest levels in over a century, prompting swift retaliatory measures from Beijing.

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President Trump has repeatedly insisted that any meaningful progress toward a deal must begin with a direct call from Chinese President Xi Jinping. Earlier this week, Treasury Secretary Scott Bessent echoed that sentiment, stating that it was Beijing’s responsibility to take the first step in de-escalating the dispute.

While no formal negotiations have yet been announced, China’s latest statement is being interpreted by analysts as a tentative opening. Markets reacted positively, hopeful that a renewed dialogue might lead to a resolution that benefits global trade stability and investor confidence.

Whether the two nations can break their current impasse remains to be seen — but with significant economic and geopolitical implications at stake, the world is watching closely.