China, US holding talks on economic, trade issues

China will firmly defend its interests and support the multilateral trading system, while urging the United States to engage more in equal dialogue to ease friction and seek common ground in pursuit of a more open global economy, said analysts and business leaders on Sunday.

As He Lifeng, a member of the Political Bureau of the Communist Party of China Central Committee and vice-premier of the State Council, China's Cabinet, leads a delegation in Madrid, Spain, for talks with US counterparts from Sunday to Wednesday, market watchers said the meetings are aimed at addressing long-standing friction and exploring constructive solutions.

The two sides will discuss economic and trade issues, such as unilateral tariff measures adopted by the US, the abuse of export controls and the TikTok issue, according to the Ministry of Commerce.

Wang Wen, dean of Renmin University of China's Chongyang Institute for Financial Studies, said the previous three rounds of trade talks between China and the US signaled willingness on both sides to find common ground, bringing much-needed optimism to international markets.

"With global economic momentum faltering, the international community is watching closely the talks in Spain, hoping both sides can translate dialogue into more substantive progress that would benefit not just the two nations, but all," he said.

Li Yong, a senior research fellow at the Beijing-based China Association of International Trade, said that under such circumstances, effectively addressing topics such as unilateral US tariff measures and the abuse of export controls is essential to fostering smoother China-US economic and trade relations, particularly in rebuilding trust and stabilizing cooperation.

Chen Wenling, former chief economist at the China Center for International Economic Exchanges, said the path to productive dialogue requires mutual respect and effort. She warned that Washington's recent unilateral moves — including a fresh wave of sanctions against Chinese companies — risk undermining the very foundation of engagement.

These are not good-faith gestures, but pressure tactics that Beijing will firmly oppose rather than concede to, Chen said.

"China always remains open to dialogues with the US, but only based on mutual respect and equal standing. The onus is now on Washington to decide whether it will approach the negotiating table as an equal partner seeking mutually acceptable solutions," she added.

On Saturday, the Ministry of Commerce responded to a US move to add multiple Chinese entities to its export control list. A spokesperson said that China firmly opposes the move, which targets Chinese entities in the semiconductor, biotechnology, aerospace, and commercial and trade logistics sectors.

Noting that the two countries are scheduled to hold economic and trade talks in Spain starting on Sunday, the spokesperson said the US decision to sanction Chinese businesses raises questions about its true intentions.

The Ministry of Commerce also announced on the same day that it has initiated an anti-dumping investigation into imports of certain analog integrated circuit chips originating in the US, and it launched an anti-discrimination investigation into relevant US measures targeting China's integrated circuit sector.

Following these moves, the Beijing-based China Semiconductor Industry Association issued a statement stressing that the healthy development of the semiconductor industry requires a fair competitive environment.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products called for domestic companies to boost innovation, strengthen industrial coordination and deepen global cooperation, while warning that unilateral measures risk disrupting international industrial and supply chains.

John Quelch, a professor at Duke University's Fuqua School of Business, said: "The recent trend toward decoupling, particularly in technology and supply chains, reflects a deeper anxiety about dependence and vulnerability. But we must not lose sight of the broader truth: China and the US remain deeply intertwined."

He said the two sides must search for new equilibrium, one that balances competition with cooperation, and national interest with global responsibility.

Olaf Schmidt, vice-president of Messe Frankfurt Exhibition, a German trade fair and event organizer, said his company has always championed global free trade, believing that it is vital to connect people, products and markets.