(Washington, New York) – U.S. President Donald Trump has stated that he may reach a new trade agreement with China, indicating his openness to avoiding a brewing trade war between the two countries.
During an interview aboard Air Force One on Wednesday (February 19) while returning to the White House from Florida, Trump was asked by reporters whether he would negotiate a new trade agreement with China. He responded, "It’s possible. It’s possible." However, he did not disclose specific details about the potential agreement.
Trump also anticipated a visit from Chinese President Xi Jinping to Washington but only reiterated his positive relationship with Xi. He did not confirm whether they would engage in direct talks or when such discussions might take place. "We will eventually meet with President Xi and other leaders," Trump stated.
New Round of Tariff Increases and Trade Tensions
Earlier this month, the U.S. government announced a 10% tariff hike on all Chinese imports. In response, China swiftly retaliated by imposing additional tariffs on U.S. liquefied natural gas (LNG), coal, agricultural machinery, and other products. Furthermore, China launched an antitrust investigation against Google. Whether this latest round of trade tensions will de-escalate is seen as contingent upon direct communication between Trump and Xi.
According to sources, officials and think tanks from both China and the U.S. are drafting plans to facilitate a meeting between Xi and Trump at Trump’s private Mar-a-Lago estate. Chinese officials and analysts are also exploring incentives that might appeal to Trump and have been consulting Chinese businesses for input.
China’s Proposed Incentives to the U.S.
A former Chinese diplomat, speaking anonymously, revealed that China's potential proposals could include:
- Significant investments in the U.S. to establish solar energy, electric vehicle, and battery manufacturing facilities, creating 500,000 American jobs.
- Exploring joint ventures with U.S. firms, allowing American companies to hold a majority stake or license Chinese technology.
- Committing to large-scale purchases of U.S. exports.
- Strengthening cooperation on maintaining peace on the Korean Peninsula and rebuilding Ukraine.
- Affirming the U.S. dollar’s status as the dominant global currency.
China's Expected Counter-Demands
Analysts speculate that Xi may request the U.S. to:
- Reduce certain tariffs on Chinese goods.
- Ease restrictions on China's access to advanced U.S. technologies.
Trump’s Team Preparing for Trade Talks
Michael Pillsbury, who participated in U.S.-China trade negotiations during Trump’s first term, told The New York Times that Trump has long expressed his desire to reach a mutually beneficial agreement with Xi. Trump's team is currently examining who should lead the new negotiations, which commitments China has failed to fulfill from the 2020 trade agreement, and how to bring China back to the negotiating table.
If the U.S. moves forward with renegotiating trade terms with China, the negotiations would likely be led by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. However, Bessent is currently focused on assessing whether China has met its previous commitments under the earlier trade agreement.
Reviewing the 2020 Trade Agreement
In January 2020, Trump and China signed a trade agreement, under which Beijing pledged to:
- Crack down on intellectual property theft and commercial espionage targeting U.S. companies.
- Increase its purchases of U.S. goods by an additional $200 billion within one year.
- Ease restrictions on American exports to China.
However, the outbreak of the COVID-19 pandemic disrupted trade flows, and Trump later blamed China for the crisis, leading to a rapid deterioration in U.S.-China relations.
Upon returning to office, Trump accused China of failing to meet its purchasing commitments and, on his first day in office, ordered an investigation into China’s compliance with the agreement.
Potential Expansion of Negotiation Scope to Nuclear Security
According to The New York Times, multiple current and former Trump administration officials believe that despite significant challenges, Trump remains eager to negotiate a comprehensive deal with Xi—one that extends beyond trade.
The report cites sources indicating that Trump prefers one-on-one negotiations with Xi and that the agreement may include large-scale Chinese investments in the U.S. and expanded purchases of American exports.
Furthermore, Trump is interested in incorporating nuclear security issues into the potential agreement, broadening the scope of U.S.-China negotiations beyond trade.
(Washington, New York) – U.S. President Donald Trump has stated that he may reach a new trade agreement with China, indicating his openness to avoiding a brewing trade war between the two countries.
During an interview aboard Air Force One on Wednesday (February 19) while returning to the White House from Florida, Trump was asked by reporters whether he would negotiate a new trade agreement with China. He responded, "It’s possible. It’s possible." However, he did not disclose specific details about the potential agreement.
Trump also anticipated a visit from Chinese President Xi Jinping to Washington but only reiterated his positive relationship with Xi. He did not confirm whether they would engage in direct talks or when such discussions might take place. "We will eventually meet with President Xi and other leaders," Trump stated.
New Round of Tariff Increases and Trade Tensions
Earlier this month, the U.S. government announced a 10% tariff hike on all Chinese imports. In response, China swiftly retaliated by imposing additional tariffs on U.S. liquefied natural gas (LNG), coal, agricultural machinery, and other products. Furthermore, China launched an antitrust investigation against Google. Whether this latest round of trade tensions will de-escalate is seen as contingent upon direct communication between Trump and Xi.
According to sources, officials and think tanks from both China and the U.S. are drafting plans to facilitate a meeting between Xi and Trump at Trump’s private Mar-a-Lago estate. Chinese officials and analysts are also exploring incentives that might appeal to Trump and have been consulting Chinese businesses for input.
China’s Proposed Incentives to the U.S.
A former Chinese diplomat, speaking anonymously, revealed that China's potential proposals could include:
- Significant investments in the U.S. to establish solar energy, electric vehicle, and battery manufacturing facilities, creating 500,000 American jobs.
- Exploring joint ventures with U.S. firms, allowing American companies to hold a majority stake or license Chinese technology.
- Committing to large-scale purchases of U.S. exports.
- Strengthening cooperation on maintaining peace on the Korean Peninsula and rebuilding Ukraine.
- Affirming the U.S. dollar’s status as the dominant global currency.
China's Expected Counter-Demands
Analysts speculate that Xi may request the U.S. to:
- Reduce certain tariffs on Chinese goods.
- Ease restrictions on China's access to advanced U.S. technologies.
Trump’s Team Preparing for Trade Talks
Michael Pillsbury, who participated in U.S.-China trade negotiations during Trump’s first term, told The New York Times that Trump has long expressed his desire to reach a mutually beneficial agreement with Xi. Trump's team is currently examining who should lead the new negotiations, which commitments China has failed to fulfill from the 2020 trade agreement, and how to bring China back to the negotiating table.
If the U.S. moves forward with renegotiating trade terms with China, the negotiations would likely be led by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. However, Bessent is currently focused on assessing whether China has met its previous commitments under the earlier trade agreement.
Reviewing the 2020 Trade Agreement
In January 2020, Trump and China signed a trade agreement, under which Beijing pledged to:
- Crack down on intellectual property theft and commercial espionage targeting U.S. companies.
- Increase its purchases of U.S. goods by an additional $200 billion within one year.
- Ease restrictions on American exports to China.
However, the outbreak of the COVID-19 pandemic disrupted trade flows, and Trump later blamed China for the crisis, leading to a rapid deterioration in U.S.-China relations.
Upon returning to office, Trump accused China of failing to meet its purchasing commitments and, on his first day in office, ordered an investigation into China’s compliance with the agreement.
Potential Expansion of Negotiation Scope to Nuclear Security
According to The New York Times, multiple current and former Trump administration officials believe that despite significant challenges, Trump remains eager to negotiate a comprehensive deal with Xi—one that extends beyond trade.
The report cites sources indicating that Trump prefers one-on-one negotiations with Xi and that the agreement may include large-scale Chinese investments in the U.S. and expanded purchases of American exports.
Furthermore, Trump is interested in incorporating nuclear security issues into the potential agreement, broadening the scope of U.S.-China negotiations beyond trade.
