By Mackenzie Tatananni

Shares of Alibaba, JD.com, and other Chinese companies were falling on Thursday after Beijing dispelled rumors that negotiations to abate the U.S.-China trade war were in the works.

The markets rallied on Wednesday amid media reports that a resolution may be coming, in addition to Trump's own comments that the current 145% tax rate would come down "substantially."

But the moment of reprieve was temporary, as China's Ministry of Commerce issued a statement on Thursday calling the rumors "groundless."

He Yadong, a spokesperson for the Ministry of Commerce, asserted that the claims about negotiations "have no factual basis."

"China's position is consistent and we are open to consultations and dialogues, but any form of consultations and negotiations must be conducted on the basis of mutual respect and in an equal manner," He said.

U.S.-listed shares of Chinese companies fell on the news while futures tracking the three major indexes traded flat. Baidu fell 0.4%, Alibaba was down 0.5%, and JD.com tumbled 4.1%. Alibaba's Hong Kong shares fell 1.9% Thursday, while JD.com fell 6.2%.

Trump's history of tariffs on Chinese imports stretches back to his first term. Rising trade tensions spilled over into a tit-for-tat trade war that spanned most of his first four years in office.

The present-day tensions come as a response to Trump's hefty levies against China, which effectively total 145%.

Shortly after his "Liberation Day" announcement, in which Trump unleashed a barrage of reciprocal tariffs against U.S. trading partners, the president announced a 90-day pause. China, notably, remained the exception.

Beijing raised its own tariffs on U.S. goods to 125% from 84% earlier this month and recently placed export restrictions on seven rare earth elements and magnets.

"The unilateral tariff increase measures were initiated by the United States," He said on Thursday. The spokesperson urged the Trump administration to "face up to the rational voices of the international community" and find ways to resolve the conflict through "equal dialogue."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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April 24, 2025 09:02 ET (13:02 GMT)

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