China has signaled its openness to resuming trade negotiations with the United States, even as President Donald Trump ramped up criticism of Beijing’s economic policies in a social media post on Monday morning. According to an editorial published by People’s Daily, the official mouthpiece of the Chinese Communist Party, China is “well-prepared” to handle any fallout from renewed tariff threats and economic pressure from Washington.
“Faced with the volatility and extreme pressure from the U.S., we have not closed the door to negotiations,” the editorial stated. “But we will not harbor any illusions. Instead, we have made various preparations to deal with the impact.”
The article emphasized that China has built “rich experience” from its ongoing eight-year trade conflict with the U.S. and has become increasingly resilient to economic shocks stemming from tariffs and sanctions. The editorial added that Beijing stands ready to deploy monetary policy tools—including interest rate cuts—“at any time” should the economic environment deteriorate.
Notably, the piece struck a defiant tone while downplaying the overall damage from the trade dispute. “The sky hasn’t fallen,” it said, highlighting how China’s dependency on the U.S. market has declined significantly. Chinese exports to the U.S. have dropped from 19.2% of total exports in 2018 to just 14.7% in 2024, underscoring efforts to diversify trade partnerships and reduce reliance on American consumers.
The remarks from Beijing came just hours after former President Trump defended his economic track record in an early morning social media post, published ahead of the U.S. stock market’s opening. Trump doubled down on his previous stance favoring aggressive tariffs, particularly against China, which he accused of failing to heed his warnings against retaliatory measures.
“China is not acknowledging my warning for abusing countries not to retaliate,” Trump wrote, referencing Beijing’s recent move to impose a 34% tariff on select U.S. imports.
Trump also claimed there was “no inflation,” a statement that contradicts official government data. The most recent Consumer Price Index showed U.S. inflation standing at 2.8% as of February. Economists warn that further trade restrictions could lead to higher prices for consumers.
In a separate development on Monday, JPMorgan Chase CEO Jamie Dimon weighed in on the economic implications of heightened tariffs in his annual shareholder letter. “The tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon warned.
Meanwhile, Trump called on the Federal Reserve to cut interest rates, despite the central bank’s decision last month to leave rates unchanged. The Fed cited “increased uncertainty” surrounding the economic outlook as a primary reason for its cautious stance.
The recent exchange of tariff measures and rhetoric suggests a hardening stance on both sides, raising concerns among global investors and economists about the potential for renewed trade disruptions. While Beijing’s comments suggest a willingness to engage, they also reflect a broader strategy of economic decoupling from the U.S. and growing reliance on alternative markets and policy levers to sustain growth.
With elections looming in the U.S. and geopolitical tensions simmering across multiple fronts, the prospect of a resolution appears uncertain. Still, both nations remain economically intertwined, and analysts believe backchannel negotiations may continue, even amid public posturing.
