China is offering Trump a trade deal to resurrect the failed 2020 Phase One accord and prevent further tariffs.
President Donald Trump’s friend, China’s President Xi Jinping, is trying to patch matters with America before the trade war begins on Monday. He’s appealing for an end to fighting in a war he never began and frantically attempted to halt.
Beijing is planning to offer President Trump a trade agreement to suspend or abolish the 10% tariffs he imposed against China on Saturday and technological restrictions, according to Wall Street Journal.
The idea reportedly aims to revive the 2020 Phase One trade accord, which failed. This time, China’s strategy includes additional sugar substitutes to entice Trump.
Beijing vowed to buy $200 billion more American products and services over two years in 2020. The outcome was disastrous. China missed 60% of the objective, according to Peterson Institute for International Economics estimates.
However, the Journal reports that this time will be different—on paper. China is eager to buy IT gadgets, chips, semiconductors, and US energy supplies again.
That’s a big adjustment from the initial accord, which experts called impossible. China is promising more investment in US sectors, notably electric vehicle battery manufacture. Beijing wants this to look to benefit both nations.
Washington sources said the investment approach might assuage worries about America’s increasing dependency on Chinese manufacturing.
China also pledged not to weaken the yuan to boost exports and avoid currency difficulties.
Trump is upset because Chinese authorities apparently promised to reduce shipments of Fentanly precursors.
Already, not everyone buys Chinese goods. In his confirmation hearing this week, Trump’s incoming Commerce Secretary, Howard Lutnick, stressed the need of tech limits.
Howard noted that Chinese AI firm DeepSeek circumvented US chip export regulations to create a chatbot that rivalled American models. It’s got to end,” he warned, threatening a “very harsh response” to any violations.
But Treasury Secretary Scott Bessent looks more receptive to talks. In his confirmation hearing, he urged implementing Phase One purchase assurances with a “catch-up” mechanism for past failures.
He’ll face opposition from government officials like Peter Navarro, who want harder measures against Beijing.
China offers to negotiate the TikTok conflict as a “commercial matter” without government involvement. Trump wanted a 50-50 split between US and Chinese interests in TikTok, but Beijing seems to be letting ByteDance, the app’s parent business, negotiate with possible American investors.
That doesn’t guarantee a smooth procedure. TikTok’s algorithm, which recommends material, is a serious issue. China put this algorithm on its export-control list, making it uncertain whether it would approve it in any agreement.
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