China wants to avoid trade war with Trump and is preparing first offer to negotiate with US
Beijing wants to resume the "Phase One" agreement, which failed at the time, and offer several incentives to Washington to avoid tariffs and an economic war.

2019 file photo between Presidents Donald Trump and Xi Jinping
China is ready and "eager" to negotiate with President Donald Trump on a trade deal that would avert the possibility of tariffs and a trade war with the United States.
According to an exclusive report from the Wall Street Journal, Beijing wants to resume the "Phase One" agreement, a failed trade deal signed during the first Trump administration in which China pledged to increase purchases of U.S. goods and services by $200 billion over a two-year period, something that experts have called "unrealistic."
In addition to putting the Phase One deal on the table, the Asian giant is prepared to include an offer to make more investments in the U.S. in key sectors such as batteries for electric cars.
Likewise, China would also again promise not to devalue the yuan to gain a competitive advantage over the dollar and a commitment to reduce exports of fentanyl, which is Trump's main excuse for imposing a 10% tariff on Chinese goods.
Within the Chinese Communist Party, the tariff announcement was not received so negatively. In fact, leaders saw the announcement as a way for Trump to apply pressure, without these tariffs reaching the point of being unacceptable or insulting, especially considering that the Republican president had already threatened 60% tariffs in the past.
Even after the announcement, Chinese officials felt there was room for negotiation, the WSJ reported.
To keep hope alive for a deal and avoid a trade war, China would also be willing to assess TikTok as a "trade issue" and not a political one at a time when Trump himself suggested that Washington's interest is for Americans and Chinese to split control of the controversial app 50-50.

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"That means the government intends to stay out of the way and let investors in TikTok’s Chinese parent company, ByteDance, negotiate a deal with interested American bidders," the WSJ reported, citing sources.
At the time, Trump had already labeled the "Phase One" trade deal as "the biggest deal" ever struck. So China would have some expectation that renewing this deal could capture Washington's interest, but requesting permission to purchase key products that actually interest the Asian giant, such as U.S. chips and other types of technologies whose exports are subject to significant restrictions.
In turn, China could offer more purchases of U.S. agricultural, energy and industrial products, another incentive to reach a deal, and avoid massive exports of fentanyl precursors.
According to the WSJ, Chinese President Xi Jinping's envoy to Trump's Jan. 20 inauguration,Vice President Han Zheng told the U.S. president's team that there is readiness from Beijing to discuss issues such as TikTok, fentanyl and trade.
"Beijing is eager to see the asking price from the Trump team and explore room for negotiations, especially on tariff and tech," Yun Sun, director of the China program at the Stimson Center, a Washington think tank, told the Yun Sun newspaper.
For now, publicly, Trump administration officials have been careful with their words, suggesting they are also ready to talk with China.
For example, the brand-new Treasury secretary, Scott Bessent, said during his confirmation hearings that he is open to the idea of having talks to enforce the 'Phase One' agreement's purchase guarantees and press China to include a clause to make up for the last four years in which the Asian giant failed to live up to its end of the bargain.