China hints at possible US thaw after tariff hikes

China said it is assessing the possibility of trade talks with the U.S., the first sign since Donald Trump hiked tariffs last month that negotiations could begin between the two sides. China’s Commerce Ministry said in a Friday statement that it had noted senior U.S. officials repeatedly expressing their willingness to talk to Beijing about tariffs, and urged officials in Washington to show “sincerity” toward China. “The U.S. has recently sent messages to China through relevant parties, hoping to start talks with China,” the ministry added. “China is currently evaluating this. ”Futures on the S&P 500 Index erased early losses in Asia soon after the statement, and a gauge of regional equities rallied to its highest level in more than a month. The Hang Seng China Enterprises Index finished almost 2% higher in Hong Kong, while mainland markets were shut due to a holiday. The statement signaled the stalemate between the world’s two largest economies could shift, after Trump hiked U.S. tariffs to the highest level in a century and Beijing retaliated in kind. Trump has repeatedly said President Xi Jinping needs to contact him in order to begin tariff talks. Earlier this week, Treasury Secretary Scott Bes sent said it’s up to Beijing to take the first step to de-escalate the dispute. John Gong, a former consultant to China’s Commerce Ministry, likened the latest gesture to “the first rain after a long drought.”