China says it is ready to restore relations with the United States ahead of Trump’s inauguration

President Xi Jinping sent a strong signal this week that Beijing is willing to work with US President-elect Donald Trump to resolve trade disputes amid risks of a potential trade war.

In Letter to the US-China Business Council On Thursday, Xi said the two sides should choose “dialogue over confrontation, win-win cooperation over zero-sum game,” while reiterating his commitment to opening the Chinese market to foreign companies, including US businesses.

These words echoed in his speech Meeting with trip leaders on Tuesday According to a CNBC translation of the speech in Mandarin, the major international economic organizations said they “won’t win tariff wars, trade wars, technology wars.” Xi urged both sides to continue dialogue and manage differences.

Kenneth Jarrett, senior adviser at Albright Stonebridge Group, said the flurry of messages from Beijing reflected a “sense of concern” and that “these suggestions have happened very clearly.”

“This could mean that Chinese authorities do not have channels to Trump’s new team … and that Beijing believes there are political benefits in projecting a public image of its willingness to work with the new US administration,” Jarrett added.

There is also Trump, who is set to take office in January promised additional 10% tariffs on all imports of Chinese goods from the United States. Trump threatened during the election campaign Applying tariffs in excess of 60% over China.

Joe Biden administration earlier this month The US has announced extensive restrictions on exports Advanced memory chips and chipmaking machines to Chinese companies. Beijing responded the next day prohibits the export of a number of rare materials used in semiconductors and military applications.

“China has made clear that despite its commitment to growth and constructive trade relations, it will not back down in the face of US pressure,” said Daniel Balazs, a research fellow at the S. Rajaratnam School of International Studies. .

Earlier this week, China’s market regulators announced that it has opened an antitrust investigation to American chip powerhouse Nvidia. The company was banned from shipping its most advanced chips to China, but it still sold less advanced chips and processors to Chinese companies. made up 15% of its income in the October quarter.

However, experts say both sides will try to negotiate a deal rather than force higher tariffs.

There may be “some implementation of tariffs,” but they will likely be “closely coordinated and nothing sudden, huge or disruptive,” Sam Radwan, president of Enhance International, told CNBC.

Export has been a rare bright spot In China’s slowing economy, companies are rushing to ship to the U.S. before higher tariffs kick in, but Chinese exports will also face a slowdown once stronger tariffs are imposed.

President Xi reiterated on Tuesday that he “full confidence” to achieve this year’s growth target, calling the country “the world’s biggest engine of economic growth.”

Earlier this week CBS TV reported that Trump invited The Chinese leader will attend his inauguration next month.

Derek Scissors, a senior fellow at the American Enterprise Institute, said Beijing was trying to avoid “any appearance of Xi being friendly” by not attending the inauguration.

CBS reports that there has never been a precedent for Chinese leaders to attend a US inauguration ceremony, which is usually witnessed by Chinese ambassadors.

Chinese spokesman The trade department told journalists about it At a regular briefing on Thursday, China said it was in close contact with its US counterpart and was open to engaging with incoming economic and trade officials under the Trump administration.

Gabriel Wildau, managing director of Teneo, said that while the Chinese government has tried to project a willingness to negotiate with the incoming Trump administration, this “does not indicate that China is ready to make the kind of concessions that Trump is looking for.”

One example of such concessions China could make would be a tougher promise control of the fentanyl tradeAccording to Scissors.

Wildau added that “in a dark scenario of continued escalation, Beijing can point to these initial statements to show the world that Washington is a party that refuses to cooperate and compromise.”