China has signalled it may be ready to begin trade negotiations with the United States, marking the clearest sign yet of a possible thaw in relations since President Donald Trump’s sharp escalation of tariffs last month.

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In a statement issued on Friday, China’s Commerce Ministry said it was evaluating the possibility of talks following repeated signals from senior US officials. Beijing acknowledged that the US had sent “messages through relevant parties” expressing interest in restarting discussions and urged Washington to show “sincerity” by scrapping its unilateral tariff measures.

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“The door is open,” the ministry said. “But if the United States does not correct its wrong unilateral tariff measures, it means that the United States has no sincerity at all.”

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The announcement boosted market sentiment across Asia. Futures on the S&P 500 Index turned positive, the Hang Seng China Enterprises Index climbed over 1%, and the offshore yuan strengthened alongside the Australian dollar, which is often seen as a proxy for China demand.

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Tensions between the world’s two largest economies intensified in early April when the Trump administration introduced sweeping tariffs — including a 145% duty on Chinese imports — triggering a swift response from Beijing. Despite the tit-for-tat measures, both sides have left the door open to dialogue.

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Treasury Secretary Scott Bessent said earlier this week that it was up to Beijing to make the first move. On Thursday night, US Secretary of State Marco Rubio — now also serving as interim national security adviser — told Fox News that “the Chinese are reaching out” and want to talk. Rubio described Beijing’s position as a push for a “short-term accommodation” to ease economic pressure.

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Commentators suggest that internal preparations for negotiations may already be underway in China. John Gong, a former Commerce Ministry adviser, described the statement as “the first rain after a long drought” and said it likely reflects approval from China’s top leadership to begin shaping a negotiation strategy.

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Economic pressures on both sides may be accelerating the push toward talks. In China, factory activity fell to its lowest since 2023, with new export orders at their weakest in over two years. Meanwhile, the US economy contracted at the start of 2025 amid a rush of pre-tariff imports and sliding consumer confidence.

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Yet obstacles remain. Beijing wants clarity on who will lead talks on the US side, ideally someone with direct backing from President Trump. There are also concerns in China about the expanding role of Rubio, who has previously drawn Beijing’s ire over Taiwan and the South China Sea.

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Still, officials and analysts say both governments appear increasingly open to at least easing tensions — even if a comprehensive deal remains elusive. Frank Lavin, a former US undersecretary of commerce, told Bloomberg that discussions could begin “within a few days.”

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