15 hours Ago
Representing China at the talks will be Vice Premier He Lifeng, while the United States delegation will be led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. This marks the first major interaction between the two economic giants since Chinese Vice-President Han Zheng attended the presidential inauguration earlier this year.
Tariffs Trigger Ongoing Dispute
Since returning to office, US President Donald Trump has sharply raised import taxes on Chinese goods, imposing tariffs of up to 145%. In response, China has retaliated by levying tariffs of up to 125% on certain American imports.
The trade war has significantly impacted global financial markets and disrupted international trade flows. Both sides are now under growing pressure to seek common ground and avoid further economic damage.
Focus on De-escalation, Not Immediate Deal
In a recent interview, Scott Bessent stated that the goal of the upcoming talks is to reduce tensions rather than finalize a comprehensive agreement. "My sense is that this will be about de-escalation, not about the big trade deal, but we've got to de-escalate before we can move forward," he said.
Meanwhile, a spokesperson from China's commerce ministry emphasized the negative global effects of the US's unilateral tariffs. "If the United States wants to resolve the issue through negotiations, it must face up to the serious negative impact of unilateral tariff measures on itself and the world," the spokesperson said.
China Responds to Global Pressure
Chinese state media reported that Beijing's decision to enter talks followed careful consideration of international expectations, national interests, and appeals from American businesses. Although open to negotiation, China reaffirmed its readiness to continue the trade dispute if needed. "If the country decides to continue to fight this trade war – it will fight to the end," the report stated.
Experts Predict Long Road Ahead
Trade analysts remain cautious about the potential for a quick resolution. Deborah Elms, a trade policy expert, commented, "You have to start somewhere, so I'm not saying it isn't worthwhile. Just unlikely to be the launch event people are hoping to see."
Henry Gao, a law professor with prior experience at the World Trade Organization, added, "We should expect to see a lot of back and forth, just like what happened last time in 2018. I would expect the talks to drag on for several months or even more than a year."
Markets React Positively
Despite the uncertainty, financial markets in mainland China and Hong Kong saw gains following the announcement of the upcoming talks. Chinese authorities have also rolled out new measures to support the economy, contributing to the positive investor sentiment.
In the United States, stock futures also rose, reflecting optimism among investors. Futures are financial contracts that predict market movement and provide insight into expected trading behavior when markets open.
Awaiting Further Developments
As the talks in Switzerland approach, attention remains focused on how both nations will navigate this complex standoff. In addition to trade negotiations, market watchers are also waiting for an important announcement from the US central bank on interest rates, expected later this week.
While no quick breakthrough is expected, this round of discussions could mark a significant step toward resolving one of the most consequential trade conflicts of recent years.
Stay informed with Newsbuck – your go-to source for global news, trends, and updates across tech, health, politics, and more. Trusted stories, delivered fresh. Explore more on Newsbuck!
