China to US: No Respect, No Talks – Ex-Finance Official Warns Amid Soaring Tariffs

TDT | Manama
Email : editor@newsofbahrain.com

A former top Chinese economic policymaker has issued a sharp message to Washington: if the US wants negotiations, it must first show respect.

Zhu Guangyao, who served as China’s Vice Minister of Finance from 2010 to 2018 and was deeply involved in US-China trade negotiations, stated in an interview in Singapore that China will not engage in talks over tariffs if the US continues to impose its will.

“If the US wants China to totally accept the US proposal, to accept the US conditionality, I think there’s no negotiation,” Zhu said bluntly, highlighting that mutual respect and peaceful coexistence must form the foundation of any future dialogue.

Tariff Tensions at Breaking Point

The remarks come as China and the US remain entangled in a severe trade war that has escalated over the past two weeks. Tariffs have surged to historic highs, with Chinese goods facing US tariffs of 145%, and American exports to China being met with a 125% rate — nearly bringing trade between the world’s two largest economies to a standstill.

The impact is weighing heavily on China’s economy, already strained by deflation, weak consumer demand, and a prolonged property crisis. UBS Group AG has downgraded China’s 2025 growth forecast to just 3.4%, the lowest among major global banks.

Confidence and Conditions

Despite mounting pressure, Zhu said China remains confident it will hit its 5% growth target this year, noting that it's a key benchmark for the final year of the country's 14th Five-Year Plan. He emphasized that domestic consumption is expected to rise and that China has the fiscal room to increase spending if needed.

Zhu also pushed back on speculation that China may retaliate by selling off its massive holdings of US Treasury bonds. He called China a “very responsible investor” committed to global market stability, though he underlined that any such approach is rooted in “mutual respect and cooperation.”

Not There Yet, Says the US

On the American side, US Trade Representative Jamieson Greer acknowledged that while President Trump expects talks "at some point," the sides are “not there yet.” Trump has called President Xi Jinping a “friend” and expressed hope for direct leader-to-leader negotiations, though tensions remain high.

Zhu’s comments echo a long-standing Chinese stance: Beijing is open to dialogue but will not be coerced or threatened. The current deadlock appears far from resolution unless Washington adjusts its approach, at least according to China's former top negotiators.