The United States and China have announced significant progress following two days of high-level trade discussions in Geneva, raising hopes of a potential easing of tensions that have roiled global markets and stoked fears of economic downturn.
US Treasury Secretary Scott Bessent described the weekend talks as “productive,” noting “substantial progress” was made. He declined to provide specifics but promised a full briefing on Monday. Echoing Bessent’s optimism, Chinese Vice Premier He Lifeng called the discussions “candid, in-depth and constructive,” describing the outcome as “an important first step.”
The talks come amid heightened US-China trade tensions, ignited by President Donald Trump’s aggressive tariff hikes up to 245 percent on some Chinese goods. China retaliated with 125 percent tariffs on American imports. Despite the confrontational backdrop, both sides expressed a willingness to move forward.
China’s international trade representative Li Chenggang revealed plans for a joint mechanism to ensure regular communication on trade issues. While a detailed communique is expected Monday, Li brushed off concerns about timing, saying, “If the dishes are delicious, timing is not a matter.”
Global observers, including World Trade Organization chief Ngozi Okonjo-Iweala, welcomed the developments. “Amid current global tensions, this progress is important not only for the US and China but also for the rest of the world,” she said.
Analysts have responded cautiously. Wendy Cutler of the Asia Society Policy Institute noted the 15-hour talks were a positive sign but warned that “the devil will be in the details.” Gary Hufbauer of the Peterson Institute expressed skepticism about a full return to normal trade relations, even with lower tariffs.
The meetings followed Trump’s announcement of a trade deal with the UK, signaling a shift towards negotiated relief from tariffs. In a Truth Social post, Trump declared “GREAT PROGRESS!!” with China and reaffirmed his desire to see China open more fully to US businesses.
While uncertainties remain, the Geneva talks have provided a rare moment of optimism in an otherwise strained relationship between the world’s two largest economies.
