Trump tariffs: China puts four conditions before US to restart trade talks, warns Donald Trump not to threaten Beijing

US versus China Trade War: Hours after it was reported that US now levies a whopping 245% tariff on Chinese goods, Beijing replied with readiness to join the negotiation table in order to calm the trade war. China remarked US should ‘stop exerting extreme pressure, stop threatening and blackmailing’, if they wish to open trade talks. China also imposed four riders for trade talks between the two biggest economies of the world.

"If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit," Foreign Ministry spokesman Lin Jian said.

China said on Wednesday its economy grew a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies.

However, analysts have warned that the impact of the US tariffs will be felt in the second quarter.

"The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment," Heron Lim from Moody's Analytics told AFP.

What Did China Demand From US?

According to Times of India report, China put forth the following demands for Beijing to reach the negotiations table with US:

• A curb on disparaging remarks made by US cabinet members
• A consistent US stance on trade matters
• Address China's concerns regarding American sanctions and US policy on Taiwan
• Appoint a lead negotiator with clear backing from Trump—someone capable of crafting an agreement that could be formally signed by both Trump and Chinese President Xi Jinping when they mee

Rare Earths – China's ‘Trump’ Card Against US?

China’s dominance of the rare earths supply chain has emerged as among its most potent tools in a renewed trade war with the United States president. The minerals – used to power everything from iPhones to electric vehicles – are vital components for the kinds of advanced technology that will define the future.

Unlike tariffs, this is an area where Donald Trump has limited options for reciprocal retaliation.

Rare earth elements are a group of 17 metals more common than gold and found worldwide, including in the US. However, extracting and processing them is costly, complex, and environmentally harmful.

For decades, the US and other countries have been dependent on Beijing’s supply of these processed metals. China accounts for 61% of global mined rare earth production, but its control over the processing stage is 92% of the global output, according to the International Energy Agency.

On April 4, after years of veiled warnings, the Chinese government placed export restrictions on seven types of rare earth minerals, as part of its retaliation against Trump’s initial 34% “reciprocal” tariffs on Chinese goods. The new rules require all companies to secure government permission to export the seven minerals as well as associated products, such as magnets.

America’s advanced weapons manufacturers are likely to face a critical shortfall of key rare-earth minerals that they import from China as a consequence of Donald Trump’s escalating trade war with Beijing.