Comprehensive foreign news reports indicate that the US-China trade and commerce talks held in Geneva, Switzerland, have successfully concluded. The White House press release U.S. Announces China Trade Deal in Geneva announced significant progress in trade negotiations with China over the weekend.
He Lifeng, the Vice Premier of the State Council representing China, also stated at a press conference by Xinhua News Agency that the talks were frank, in-depth, and constructive, reaching important consensus. Neither the US nor China disclosed more details, but this trade and commerce talks in Geneva showed a glimmer of reconciliation in trade and economic differences between the United States and China.
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ToggleUS Treasury Secretary Announces Substantial Progress in US-China Trade
US Treasury Secretary Scott Bessent stated in the press release: I am pleased to report that the United States and China have made substantial progress in this very important trade negotiation, and I can tell everyone that these talks were productive.
US Trade Representative Ambassador Jamieson Greer also said: As the Secretary noted, these were two very constructive days of talks. It's important to understand how quickly we were able to reach an agreement, which reflects that differences may not be as large as imagined. Just remember why we are here: the United States has a massive trade deficit of 1.2 trillion dollars, so the President declared a national emergency and imposed tariffs. We believe the agreement we are reaching with China will help our efforts to address the national emergency.
US and China Break Silent Cold War, Starting Dialogue Just for Saving Face?
Since Trump took office in January this year, he has launched a barrage of trade sanctions against China, with the US imposing tariffs of up to 145% on some Chinese imports. China has not been passive, implementing multiple counter-sanction measures and imposing 125% tariffs on some US exports to China. With China holding US debt and rare earth resources as trump cards, they are confidently facing the challenge. Both sides chose this time to negotiate, each describing the other as the "weaker" party. Is the surface-level argument purely a contest for world supremacy?
Stephen Olson, a senior visiting scholar at Singapore's ISEAS-Yusof Ishak Institute and former US trade negotiator, pointed out that neither side wants to give the impression of backing down.
Trump's tone noticeably changed near the Geneva economic and trade talks. Last Thursday, he told reporters that who calls whom first is not important; what truly matters is what happens in the meeting room.
Who Suffered More Damage?
China had just finished the May Day labor holiday, and Beijing believed it was the right time to initiate bilateral talks. The US economy is facing its first contraction in three years. A Los Angeles toy company executive told the BBC that they are facing the risk of a complete supply chain collapse.
According to official Chinese data, China's manufacturing activity has dropped to a new low. A Caixin survey showed that service sector activity has reached its lowest level in the past seven months. Chinese exporters have been impacted by US tariff sanctions, with large quantities of goods piling up in warehouses. Nevertheless, they maintain a strong, supportive attitude towards China and actively seek markets outside the United States.
What Will the Result Be?
Stephen Olson, a former US trade negotiator, believes this meeting might break the silence on previously unaddressed issues, such as fentanyl, potentially leading to an upgraded agreement.
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