China confirmed Friday it is reviewing a U.S. request for bilateral trade talks to resolve tariff disputes between the world's two largest economies, while issuing firm preconditions for any dialogue.

Key Developments:

China's Conditions:

Accused the U.S. of initiating the trade war

Demanded Washington "demonstrate sincerity" by:

• Correcting "wrong practices"

• Removing unilateral tariffs

Warned it will "fight to the end" while keeping dialogue options open

Recent Escalation:

April 2024: U.S. imposed 145% tariffs on select Chinese imports

China retaliated with 125% tariffs on U.S. goods

Current Status:

Evaluating multiple recent U.S. communication attempts

Any talks contingent on tangible U.S. policy changes

Official Statement (Commerce Ministry):

"The tariff war was started by the American side. If they truly want dialogue, they must show sincerity and prepare to take concrete steps to correct their wrong practices and cancel unilateral tariffs. China will fight to the end while keeping the door to dialogue open."

Diplomatic Context:

✔ Follows U.S. Section 301 tariff expansions on $18B in Chinese goods (EVs, steel, semiconductors)

✔ Precedes critical June G20 trade ministerial meeting

✔ Reflects hardened Chinese position since 2023 negotiations stalled

Market Implications:

• EV manufacturers particularly affected by new tariff rates

• Bilateral trade volume down 12% year-to-date

• Global supply chains face renewed uncertainty