Trade tensions between the world’s two largest economies have escalated in the last two weeks.
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The U.S. and China agreed to keep lines of communication open, following a call between senior officials Thursday, signaling continued high-level engagement as both sides work toward a broader deal.
Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau exchanged views on a wide range of key issues during the call, both sides said in closely aligned statements released Friday, without specifying whether tariffs were among the topics discussed.
While the call may not indicate a breakthrough in the ongoing trade talks, it is a “positive sign” that Beijing now knows who to talk to on the U.S. side, said Dan Wang, China director at political risk consultancy Eurasia Group, who added that “the communication channel established in the Geneva talks is working.”
Following the high-level talks in Geneva, Switzerland, earlier this month, both sides issued a rare joint statement to temporarily lower most tariffs on each other’s goods, while working toward a broader agreement.
The last time both sides issued a joint statement was in November 2023, which focused on climate cooperation.
The latest statements signal interest from both sides to stabilize the relationship and maintain bilateral engagement, said Nick Marro, principal economist for Asia at the Economist Intelligence Unit.
The call also followed a meeting between Ma and the newly minted U.S. Ambassador to China, David Perdue, earlier this week. Ma struck a conciliatory tone, according to a readout of the meeting, signaling Beijing’s hopes to align more closely with the U.S. in the ongoing trade discussions.
In that meeting, Perdue said he had shared Trump’s priorities for U.S.-China relations, according to a post on his X account. “I look forward to working with the Ministry and counterparts to achieve concrete outcomes for the American people,” he said in the post.
U.S. President Donald Trump has urged China to open up markets to the U.S.
Perdue’s arrival in Beijing came as a trade war between the world’s two largest economies had stoked fears of a broader “decoupling.” The U.S., which is also grappling with a fentanyl crisis, also wants China to stop the flow of drugs used to make the deadly opioid — a task that Perdue has been tasked with.
Despite the recent tariff de-escalation following high-level talks in Geneva earlier this month, the two sides have continued to trade swipes, underscoring the fragile state of the relations.
Chinese authorities have pushed back against a U.S. decision that warned companies not to use Chinese-made artificial intelligence chips, particularly those provided by Huawei Technologies.
China’s Ministry of Commerce earlier this week called the move “unilateral bullying” and blamed the U.S. for undermining trade talks. Beijing will take resolute measures to safeguard its legitimate rights and interests, a spokesperson said.
In a separate meeting with JPMorgan Chase Jamie Dimon on Thursday, Chinese Vice Premier He Lifeng said the negotiations with the U.S. on economic and trade issues have “made substantial progress,” stressing Beijing’s stance of intending to further open up the market for American businesses to operate in China.
Correction: This story has been updated to reflect that the call was with U.S. Deputy Secretary of State Christopher Landau.
