High-level officials from the United States and China are set to begin crucial talks this week in Switzerland in a renewed effort to ease tensions in the ongoing trade war between the world’s two largest economies. The negotiations, scheduled from May 9 to 12, mark the first major diplomatic engagement between the two sides since Chinese Vice-President Han Zheng attended President Donald Trump’s inauguration earlier this year.
Representing the US will be Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, while China’s delegation will be led by Vice Premier He Lifeng. The talks come against the backdrop of escalating tariffs, with the Trump administration imposing import duties on Chinese goods of up to 145%, prompting retaliatory tariffs from Beijing reaching as high as 125%.
While the initiation of dialogue is a positive development, trade experts caution that a resolution is still months away. “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,” Bessent told Fox News. Beijing echoed a similarly guarded stance, stating that while it is open to negotiations, it is prepared to continue the trade conflict if necessary.
A spokesperson for China’s Ministry of Commerce criticized the US’s unilateral tariff measures, arguing they have harmed both the American economy and global trade. However, Chinese state media emphasized that the decision to enter talks was influenced by international expectations, national interest, and pressure from American businesses.
Analysts say expectations for a breakthrough remain low. Deborah Elms of the Hinrich Foundation noted, “You have to start somewhere… just unlikely to be the launch event people are hoping to see.” Henry Gao, a trade law expert, predicted the negotiations could extend for many months, possibly longer than a year.
Despite the uncertain outlook, financial markets responded positively. Stocks in mainland China and Hong Kong rose, buoyed by both the trade news and new economic support measures from Beijing. US stock futures also climbed, as investors await the Federal Reserve’s announcement on interest rates later on Wednesday.
