State media signaled Thursday that China may be open to entering trade talks with the U.S., boosting hopes that the world’s two largest economies will be able to strike a deal on tariffs. Any signs that trade tensions are easing would be good news for investors,

That stubbornness has given China unaccustomed power over America’s immediate economic fate. If it reaches out to Mr Trump, the worst could be averted. If it does not, the storm will soon return. All signs suggest China’s leaders are not ready to relieve the suspense just yet. They may even be quite enjoying it.

Steep U.S. tariffs are starting to squeeze the Chinese economy.