President Xi Jinping despatched a powerful sign this week that Beijing was able to work with U.S. President-elect Donald Trump to resolve commerce disputes amid dangers of a possible commerce conflict.

In a letter to the U.S.-China Enterprise Council on Thursday, Xi mentioned the 2 sides ought to “select dialogue over confrontation, win-win cooperation over a zero-sum recreation,” whereas reiterating his dedication to open up the China marketplace for overseas firms, together with U.S. companies.

The remarks echoed his speech at a Tuesday assembly with visiting heads of main worldwide financial organizations, the place he mentioned “there shall be no winners in tariff wars, commerce wars, expertise wars,” based on World Head News’s translation of his speech in Mandarin. Xi referred to as each side to keep up dialogue and handle variations.

The flurry of messages from Beijing displays “a way of tension” and “these overtures have occurred in a really public method,” mentioned Kenneth Jarrett, senior advisor at Albright Stonebridge Group.

“This might imply that Chinese language authorities lack channels to the brand new Trump staff … and that Beijing believes there are political advantages in projecting a public picture of a willingness to work along with the brand new U.S. administration,” Jarrett added.

Trump’s coverage stance of placing America first is posing a “great risk” for Chinese language policymakers, who’re already dealing with the tall job of reviving the ailing economic system, mentioned Shen Meng, a director at Beijing-based boutique funding financial institution Chanson & Co.

Trump, who is ready to take workplace in January, has vowed a further 10% tariffs on all U.S. imports of Chinese language items. Throughout his election marketing campaign, Trump had threatened to impose tariffs in extra of 60% on China.

Earlier this month, the Joe Biden administration introduced broader restrictions on U.S. exports of superior reminiscence chips and chipmaking machineries to Chinese language firms. The subsequent day, Beijing responded by banning exports of a number of uncommon supplies utilized in semiconductors and navy functions.

“China made it apparent that regardless of this dedication to development and constructive commerce relations, it is not going to again down within the face of U.S. stress, ought to it come to that,” mentioned Daniel Balazs, a analysis fellow at S. Rajaratnam College of Worldwide Research.

Earlier this week, China’s market regulators introduced it had opened an antitrust investigation into the American chip powerhouse Nvidia. The corporate has been banned from transport its most superior chips to China, however nonetheless its gross sales of much less superior chips and processors to Chinese language firms amounted to 15% of its income within the October quarter.

Nonetheless, each side are seen to be extra more likely to attempt to work out a deal by means of negotiations, relatively than a forceful implementation of hefty tariffs, specialists mentioned.

There could also be “some introduction of tariffs” however they’ll doubtless be “intently coordinated and nothing sudden, too massive or disruptive,” Sam Radwan, president of Improve Worldwide, informed World Head News.

Exports have been a uncommon vibrant spot in China’s faltering economic system as firms rush to ship to the U.S. earlier than the upper tariffs come into play, however as soon as the stronger levies are enforced China’s exports too will face a slowdown.

President Xi reiterated on Tuesday that he had “full confidence” to realize this yr’s development goal, calling the nation “the most important engine of world’s financial development.”

Earlier this week, CBS reported that Trump had invited the Chinese language chief to attend his inauguration subsequent month.

Beijing is making an attempt to keep away from “any look that Xi is being unfriendly by not coming to the inauguration,” Derek Scissors, senior fellow at American Enterprise Institute mentioned.

There has by no means been a precedent for Chinese language leaders to attend the U.S. inauguration, which is usually witnessed by Chinese language ambassadors, CBS reported.

A spokesperson of China’s commerce division informed reporters at an everyday briefing on Thursday that China has maintained shut communication with the U.S. counterpart, and is open to maintain speaking with the incoming financial and commerce officers underneath the Trump administration.

Whereas Chinese language authorities tries to challenge a willingness to barter with the incoming Trump authorities, it doesn’t “essentially sign China is keen to make the sort of concessions” that Trump seeks, mentioned Gabriel Wildau, managing director of Teneo.

One instance of such concessions that China could make can be promising stricter oversight on fentanyl trades, based on Scissors.

“In a darker state of affairs the place escalation does proceed, Beijing may level to those early statements to point out the remainder of the world that Washington is the aspect that rejected cooperation and compromise,” Wildau added.