China Says Success of Trade Talks with The U.S. Makes Tariffs Unnecessary

Chinese trade minister Wang Wentao has called on the United States to step back climbing trade tensions and returning to a mutual cooperation path, warning that the two countries must act responsible for preserving global economic stability.

His remarks come in the middle of a critical countdown of August 12 – the deadline to finalize a sustainable tariff agreement aimed at diverting the return of a disruptive trade war.

Wang, addressing journalists on July 18, said recent negotiations in Geneva and London have shown that dialogue was always possible and preferable, stressing that “ups and downs” in American-Chinese relations put only the depth of their economic interdependence.

“Large countries should act as large countries. They must assume their responsibilities,” said Wang, while reappearing China’s commitment to protect its national interests if tensions are increasing. “China does not want a trade war, but it is not afraid of that.”

The renewed emergency comes after the United States and China concluded a preliminary agreement in June to stop weeks of reprisals. But with rights over hundreds of billions of dollars of still technically active goods and the average tariff level imposed by the United States on Chinese products at 53.6%, the risk of climbing renewal remains significant.

Rare earths flowing again, referring to soften tensions

There are some signs of thaw. Exports of rare land of China increased by 32% in June compared to May, data on customs revealed on July 14. The peak is widely attributed to the provisional agreements affected during the London talks, where the two parties would have agreed to facilitate restrictions on the flow of critical minerals, in particular rare earth essential to the electric and defense industries.

In a development linked to these negotiations, the CEO of Nvidia, Jensen Huang, confirmed during a recent event in Beijing that the company would resume the sales of its AI H20 chips in China. The announcement follows the Huang meeting with the Minister of Commerce Wang in Beijing, where the two parties discussed the fleeting cooperation. US Secretary of Commerce Howard Lux, addressing the question in Washington, suggested that the agreement was part of wider concessions linked to the rare land supply chain agreement.

“This meeting [with Nvidia’s CEO] shows that as dust sets in, everyone – especially the American side – realizes that forced decoupling is impossible, “said Wang. He added that the two countries are starting to understand the consequences of breaking it from links in key industries such as semiconductors, which underlie future technological competition.

The price impact could undermine manufacturers on both sides

Analysts warn that if no resolution is reached by August 12, the two parties could re -tax rights over 100% on certain goods, which would seriously disrupt global supply chains. Chinese manufacturers are already operating under thin beneficiaries, and additional prices greater than 35% could fully push many American markets.

“The two parties have understood that they need each other, because many goods and services that we exchange are irreplaceable, or at least difficult to exchange in the short term,” noted Wang.

Despite the hostility that has characterized trade relations in recent years, in particular in previous American administrations, Beijing seems eager to reset the tone. Wang highlighted the importance of high-level dialogue and engagement, claiming that the agreements concluded by negotiations offer a realistic path to a “healthy, stable and sustainable development” in the American-Chinese commercial relationship.

While the clock goes towards the deadline of August, the result of the talks will determine whether the two largest savings continue to return from the edge or go down again in a complete trade conflict that could stop in the world markets.