As US-China talks resume, an end to years of trade tariffs may not signal a soft landing in rivalry

Some analysts say any move by Washington to cut tariffs on Chinese goods would be solely in its own interests, rather than signal an abrupt change in President Biden’s China policy

But fresh talks between US and China are said to be a sign that communication will continue, and is necessary, given the state of the global economy

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Top economic officials from China and the United States on Tuesday held their first talks since October. Photo: Shutterstock

Published: 10:20am, 5 Jul 2022Updated: 4:04pm, 7 Jul 2022

Tuesday’s long-awaited meeting between top economic officials from China and the United States appeared to be a step toward a widely anticipated rollback of punitive tariffs on some Chinese products, four years after being put into place.

However, some analysts surmise that any such move by Washington would be aimed squarely at tackling decades-high inflation in the US, and that changes to the Trump-era tariffs would not alter the course of the two sides’ bilateral technology war and rivalry.

In their first call since October, Chinese Vice-Premier Liu He was said to have had a “pragmatic and frank” exchange with US Treasury Secretary Janet Yellen on economic and tariff issues, as well as the importance of stabilising the global industrial and supply chains, according to the official Xinhua News Agency.

“The exchanges were constructive,” the party mouthpiece said, adding that both sides believed that the global economy “is facing severe challenges, and it is of great significance to strengthen the communication and coordination of China-US macro policies”.

However, Chen Fengying, a senior researcher with the China Institutes of Contemporary International Relations, said after the talks that the tariffs have little impact on Chinese exports, which have seen extraordinary rises during the pandemic, and that Beijing will not make concessions.

“[Tariff cuts would be] for the sake of addressing US problems, and only non-strategic goods would be eligible,” she said. “It doesn’t mean an abrupt China policy change by the Biden administration, nor a halt of the ongoing tech war.”

Xinhua reported that the Chinese side expressed its thoughts on the US potentially lifting tariffs and sanctions imposed on China, as well as on the fair treatment of Chinese enterprises.