The Chinese government wants the U.S. to remove existing tariffs as part of any "Phase One" trade deal between the two countries, Chinese state-run newspaper Global Times said Sunday.

“Sources with direct knowledge of the trade talks told the Global Times on Saturday that the U.S. must remove existing tariffs, not planned tariffs, as part of the deal,” the newspaper reported. It also suggested that U.S. officials are reluctant to remove existing tariffs, as it would mean "surrender" for the U.S. administration.

The U.S. would likely not roll back tariffs for a "Phase One" agreement which fails to address core intellectual property and digital issues. China did announce it would reform its intellectual property laws in November, a positive sign for trade talks.

Previous reports have suggested that the "Phase One" trade deal would require China to buy U.S. agricultural goods. American farmers have been hit hard by the ongoing trade war, with President Trump in November demanding that China buy up to $50 billion in U.S. agricultural products per year. Beijing has been reluctant to cater to such a demand.

The Trump administration believes that the tariffs against China would help bring back U.S. manufacturing. By levying tariffs against Chinese goods, it makes it more difficult for China to flood global markets with cheap exports.

Large retailers such as Walmart have said that the tariffs would force companies to raise prices, which could hurt consumers.