World_news China trade war: Liu He calls for calm after Trump comments – Axios

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President Trump said on the sidelines of the G7 summit in Biarritz, France, Monday that China has contacted his administration to request for trade talks to resume.

Why it matters: The trade war had escalated in recent days, with with both sides hitting each other’s products with more tariffs. Just before Trump spoke, global stock markets reeled, as China’s yuan currency fell to a fresh 11-year low, Reuters notes.

  • It’s a remarkable turnaround, given China had declared 2 days ago it would continue fighting the trade war “until the end.”

The big picture: Reuters reported earlier that China’s economy czar, Vice Premier Liu He said at a tech conference in southwest Chongqing that the Chinese government was “willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war.”

“We believe that the escalation of the trade war is not beneficial for China, the United States, nor to the interests of the people of the world.”

— Liu He comments, translated by Reuters

Catch up quick: Trump said Friday he would raise tariffs against China, hours after the Chinese government announced it would levy retaliatory duties on earlier U.S. action.

  • Trump ramped up tensions at the G7 summit in France on Sunday, telling reporters that he had “no plans right now” to follow through on his emergency declaration threat to force U.S. companies to leave China but added, “If I want, I could declare a national emergency.”
  • And after telling reporters that he “might as well” have “second thoughts” about escalating the trade war, White House press secretary Stephanie Grisham clarified that Trump “regrets not raising the tariffs higher.”

Editor’s note: This article has been updated with new details throughout.

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