China has urged its companies operating in the United States to avoid engaging in prolonged price wars, signaling Beijing’s desire to maintain the trade truce with Washington.
Commerce Minister Wang Wentao conveyed this message during a meeting in New York with representatives from 10 Chinese companies in sectors such as e-commerce, telecommunications, and automotive components, as per a statement released today by the ministry.
Wang reminded that both countries “reached several important consensuses after multiple rounds of economic and trade consultations” and expressed hope that businesses “understand the situation and respond positively.”
The minister also called for rejecting the so-called “internal and external involution,” a term used in China to describe excessive competition that results from overcapacity and leads to diminishing returns.
In July, the Chinese Communist Party already committed to strengthening control over sectors with excess capacity and regulating local governments’ practices in attracting investments.
Wang’s statements reflect the attempt to keep improving relations with Washington, while also acknowledging the risks associated with escalating exports to other markets.
During the trade war with the U.S., China’s exports to India, Africa, and Southeast Asia increased significantly, raising concerns about potential negative impacts on local industries.
Last week, U.S. President Donald Trump said after a phone call with his Chinese counterpart, Xi Jinping, that he hopes to meet him on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in November.
Trump also praised progress towards an agreement on the future of the TikTok app, contrasting with earlier in the year when both countries faced large-scale tariffs.
Beijing described the conversation between Xi and Trump as “positive and pragmatic,” affirming confidence in managing differences, though the Chinese leader emphasized the need for Washington to provide “a fair environment” for Chinese companies, referring to export restrictions and other trade barriers.
In New York, Wang promised that China “will strive to stabilize Sino-American economic and trade cooperation, firmly safeguard the legitimate rights and interests of Chinese companies, and create a good environment for mutually beneficial cooperation between companies from both countries.”
