China’s state-linked social media account has announced that there would be “no harm” in initiating trade dialogue with the United States, suggesting a possible easing of tensions between the two largest economies globally.

The statement from Yuyuan Tantian, associated with the official state broadcaster CCTV, stated that the US had reached out to China to discuss President Trump’s extensive 145 percent tariffs, citing unnamed sources.

While reaffirming that China sees no need to negotiate ahead of US concessions, the post remarked, “However, if the US wishes to initiate contact, it would not harm China at this stage to engage in discussions.”

Additionally, it was noted that US officials had “proactively reached out to China through various channels.”

In an official capacity, Beijing has reacted vehemently to the tariffs, describing them as aggressive and insufficient to hinder China’s growth. In retaliation, China has imposed tariffs of 125 percent on certain US imports.

Nevertheless, reports indicate that China has subtly compiled a list of US products that will be exempt from tariffs, including pharmaceuticals, microchips, and jet engines, pointing to a potential willingness to negotiate.

According to Nomura Securities, as many as 16 million people in China could face job loss if a 50 percent decline in exports to the US continues, raising fears of broader economic impacts, stock market instability, and inflation concerns.

Beijing remains firm in its stance to resist precipitous negotiations, with the foreign ministry comparing capitulation to Trump’s tariffs to “drinking poison.”

In conclusion, the Yuyuan Tantian post emphasized, “China must closely observe and even compel the US to reveal its genuine intentions to maintain an advantageous position in both negotiations and conflicts.”

Last Friday, President Trump stated that his administration was in communication with China regarding a potential tariff agreement and mentioned that Chinese President Xi Jinping had contacted him. However, Beijing has repeatedly refuted these claims, accusing Washington of being misleading.

On Thursday, US Treasury Secretary Scott Bessent expressed confidence that China would seek to reach a trade agreement, emphasizing that, “This is going to be a multi-step process.” He explained that the first step is de-escalation, followed by a focus on a broader trade deal.

The first concession lies in China’s need to address its previous commitments under the “Phase 1” trade deal signed during Trump’s presidency, which mandated an increase in purchases of American goods by $200 billion over two years but faced disruption due to the Covid-19 pandemic.

Kevin Hassett, an economic advisor for Trump, expressed optimism, indicating that there have been “informal discussions across both governments” regarding the tariffs, interpreting China’s recent easing of tariffs on certain US products as progress.

Conversely, Guo Jiakun, a spokesman for the Chinese foreign ministry, asserted on Wednesday, “To my knowledge, there have been no discussions or negotiations between China and the US regarding tariffs.”