China says in working level communication with US over tariff war

China on Thursday said it is in "working-level communication" with the US on the deadlock over their high-intensity tariff war but asserted that the person who "tied the bell" should untie it.

The Chinese Commerce Ministry spokesperson He Yongqian was reacting to a jibe from US President Donald Trump, who was quoted as saying, "The ball is in China's court, and China needs to make a deal with us."

In response, the Chinese spokesperson quoted a proverb, saying, "The person who tied the bell must be the one who unties it."

Analysts here said talks between the two countries will be held at official levels before any dialogue between top leaders.

In response to a question, spokesperson He told the media briefing here that the ministry has been always maintaining working-level communication with its US counterparts.

While expressing Beijing's willingness for talks He, however said, "We urge the US to immediately stop its maximum pressure tactics, coercion, and blackmail, and resolve differences through equal dialogue based on mutual respect".

China on Wednesday appointed Li Chenggang, previously China's Ambassador at World Trade Organisation (WTO) as its new international trade representative signalling its intentions to open a dialogue with the US to discuss massive tit for tat tariffs slapped against each other.

A fact sheet on tariffs by the White House on Tuesday said China now faces up to a 245 per cent tariff on imports to the US as a result of Beijing's retaliatory actions of imposing 125 per cent levies against US imports.

Except China, Trump has paused his tariffs against multiple countries, including India, for 90 days leaving Beijing isolated.

China's additional tariffs will hit over USD 143 billion American exports just as Trump's tariffs will affect USD 438.9 billion Chinese exports to the US.

But analysts said Beijing has two trump cards against the US president's tariffs - the exports of rare earth minerals, critical to the US defence industry, and imports of large quantities of agricultural produce that benefit millions of American farmers.

Rare earths are a group of 17 elements. According to the International Energy Agency, currently China accounts for 61 per cent of globally mined rare earth production, but controls 92 per cent of the global output.

While retaliating against Trump's tariffs, China has imposed export control measures on certain items related to seven types of medium and heavy rare earths, which has caused serious concerns in the US.

Also, Beijing slapped heavy tariffs on US exports such as chicken, wheat, corn, sorghum, soybeans raising alarm bells among American farmers.

On rare earth metals, Trump has ordered a probe into potential tariffs on critical minerals, a broader category of resources that include rare earth elements, to evaluate the impact of these imports on America's security and resilience.

According to the fact sheet, processed critical minerals and their derivative products are key building blocks of America's defence industrial base and integral to applications such as jet engines, missile guidance systems, advanced computing, radar systems, advanced optics, and secure communications equipment.

"The United States remains heavily dependent on foreign sources, particularly adversarial nations, for these essential materials, exposing the economy and defence sector to supply chain disruptions and economic coercion," it added.

Ever since he commenced his second term this year, Trump has intensified his quest to get the rare earth metals from Ukraine and Greenland to reduce dependence on China.

While Ukraine responded positively to have an agreement with the US, the Greenland island under the Denmark protectorate cold shouldered Trump's plans.