Mixed Signals: China Denies Trade Talks as U.S. Officials Push De-escalation Narrative

Amid escalating economic tensions, China once again firmly denied on Monday that it is engaged in any negotiations with the United States to resolve their tariff conflict. Chinese Foreign Ministry spokesman Guo Jiakun emphasized at a press conference that "China and the U.S. are not engaged in any consultation or negotiation on tariffs," directly contradicting recent claims made by President Donald Trump and his senior aides.

This denial followed a string of remarks by Trump, including a claim in a Time magazine interview that Chinese President Xi Jinping had personally called him — a claim Guo also refuted. According to the spokesman, there had been no recent communication between the two leaders. These statements reinforce Beijing’s hardline resistance against Trump’s sweeping 145% tariffs on Chinese imports, which have become a significant point of contention.

Despite China’s firm stance, U.S. officials continue to suggest that negotiations are happening behind the scenes. Secretary of Agriculture Brooke Rollins stated on team that conversations with China occur "every day," though she acknowledged that Washington's version of events contrasts with Beijing’s denials. Rollins stressed that China needs the U.S. more than the U.S. needs China, reflecting the administration’s confidence in its economic leverage.

Treasury Secretary Scott Bessent echoed similar optimism, explaining that China's public rejection of talks might be aimed at a domestic audience rather than reflecting the real situation. Although pressed for clarification, Bessent insisted that a negotiation process was in place and forecasted that a de-escalation with China could happen "in the very near future," suggesting a less confrontational phase might be approaching.

As economic anxieties grow, U.S. business owners and analysts are warning about the potential fallout from prolonged trade tensions. There are fears that ongoing tariff battles could drive up prices, create product shortages, and even force some retail stores to shut down. Nevertheless, Bessent downplayed concerns over empty shelves, suggesting that many retailers had likely anticipated disruptions by preordering goods.

Further emphasizing the administration's belief that pressure would force China's hand, Bessent explained on Fox News and team’s "Squawk Box" that supply elasticity and replacement products could minimize immediate shortages. However, he made clear that any true de-escalation would largely depend on China’s willingness to ease tensions, while refusing to negotiate openly through media channels.

Meanwhile, China’s Ministry of Commerce has reiterated that any resolution must start with the U.S. canceling its unilateral tariffs. Responding to Trump’s vague references to meetings with Chinese officials, Beijing remained skeptical, maintaining that no meaningful discussions could occur until Washington withdraws its aggressive trade measures. As Trump continues to suggest that active dialogue is underway, the gap between official narratives from both sides remains as wide as ever.