BEIJING, China – China has called on the United States to act responsibly and avoid reigniting a damaging trade war, saying both countries remain deeply economically interdependent despite ongoing tensions.
Speaking to reporters on Friday, Commerce Minister Wang Wentao said China seeks to restore its trade relationship with the U.S. to a “stable and healthy footing”, emphasizing that a tariff war would harm both nations and global supply chains.
“Major countries should act like major countries. They must shoulder their responsibilities,” Wang said, urging Washington to demonstrate leadership befitting a global superpower.
The remarks come as China faces an August 12 deadline to finalize a durable tariff agreement with the U.S., following a preliminary deal reached last month aimed at halting tit-for-tat tariff escalations.
If no agreement is reached, tariffs exceeding 100% could take effect, potentially disrupting supply chains worldwide.
No Appetite for Trade War
Wang cited recent negotiations in Geneva and London as proof that disputes can be resolved through high-level dialogue and mutual understanding.
“Practice has proven that with leadership and communication at the highest levels, we can properly manage contradictions and resolve our differences,” he said.
“China does not want a trade war—but it is not afraid of one,” Wang reiterated.
He stressed that current U.S. tariffs on Chinese goods, averaging 53.6%, remain significantly high.
Analysts say duties beyond 35% could erase profit margins for Chinese exporters, especially in manufacturing.
Still, Wang insisted the U.S. and China had begun to recognize that many of the goods and services they trade are “irreplaceable or difficult to source in the short term.”
Progress on Rare Earths and AI Chips
In a possible sign of thawing tensions, China’s rare earth exports surged 32% in June, according to customs data—an outcome officials attributed to breakthrough agreements reached in London last month to ease export restrictions.
U.S. chipmaker Nvidia has also announced plans to resume sales of its H20 AI chips to China, a move CEO Jensen Huang confirmed during an event in Beijing this week.
Wang said he had met Huang on Thursday and welcomed the development.
“As the dust settles, everyone has come to the conclusion—especially the U.S. side—that forced decoupling is impossible,” he said.
U.S. Commerce Secretary Howard Lutnick also linked Nvidia’s chip sales resumption to broader negotiations over rare earth minerals, a critical component in both green tech and defense industries.
Hope for Durable Resolution
Wang concluded by reaffirming China’s commitment to cooperation and dialogue, emphasizing that restoring trust in U.S.-China trade ties is essential for long-term global economic stability.
“We will continue to strengthen communication, deepen consensus, reduce misunderstandings, and enhance cooperation,” he said. “The goal is to jointly steer China-U.S. economic and trade relations back on track—towards healthy, stable, and sustainable development.”
