China's Ministry of Commerce (MOFCOM) said Thursday that if China and the U.S. reach a phase one trade agreement, the tariffs should be reduced.

Both sides are maintaining close communication, MOFCOM spokesperson Gao Feng told reporters.

Moreover, China's Foreign Ministry spokesperson Hua Chunying said that China's stance has always been very clear: trade war is a loss-loss situation. She said it's to the interest and expectations of people from both countries and the international society that China and the U.S. reach a deal based on mutual respect and consultation.

Investors eye trade deal

Investors are closely looking for any signs of progress on a phase one trade deal, especially as the December 15 deadline is approaching.

The U.S. trade representative in August postponed imposition of additional tariffs on some Chinese goods, including cell phones and laptops, till mid-December.

U.S. stocks closed on a low note on Tuesday amid trade uncertainties, as the S&P 500 Index fell the most in almost eight weeks while most of the 30 Dow components traded in red territory.

U.S. President Donald Trump announced Monday that he will "restore" tariffs on steel and aluminum imported from Brazil and Argentina. Washington's threat to hit French products with tariffs over a taxation dispute concerning large U.S. tech companies also fueled the stock market turmoil. Later on, France's finance minister said the EU was ready to retaliate.