|
Listen to article
|
In a bid to ease tensions in their protracted trade dispute, the United States and China are preparing to enter a fresh round of negotiations this week. According to China’s Ministry of Foreign Affairs, Vice Premier He Lifeng will lead Beijing’s delegation at the talks, scheduled to take place in Switzerland from May 9 to 12.
Representing the United States will be Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as confirmed by their respective offices.
Since President Donald Trump’s return to the White House, his administration has introduced a fresh wave of tariffs, imposing duties of up to 145% on Chinese imports. In retaliation, China has levied tariffs reaching 125% on selected U.S. goods.
While the talks represent a critical step toward thawing trade relations, international trade experts have indicated that a resolution is unlikely to emerge quickly, predicting that substantive progress could take several months.
It will be the first high-level interaction between the two countries since Chinese Vice-President Han Zheng attended Trump’s inauguration in January.
Mr Bessent said he looked forward to rebalancing the international economic system to better serve the interests of the US.
“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 in an interview with Fox News.
“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,” a Chinese commerce ministry spokesperson said on Wednesday morning.
Read also: ‘Stop The intimidation,’ Taiwan’s New President Warns China
Chinese state media reported that Beijing had decided to engage with the US after fully considering global expectations, the country’s interests and appeals from American businesses.
The report added that China is open to talks but reiterated that if the country decides to continue to fight this trade war – it will fight to the end.
The trade war has triggered turmoil in financial markets and sent shockwaves across global trade.
Two trade experts told the BBC that they were not particularly optimistic about the talks, at least in the initial phase.
“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,” said Deborah Elms, Head of Trade Policy at the Hinrich Foundation.
Henry Gao, Professor of Law at Singapore Management University and a former legal adviser with the World Trade Organization, remarked that the negotiations are likely to involve prolonged and complex exchanges, echoing the drawn-out process seen in 2018. He suggested the talks could continue for several months, potentially extending beyond a year.
In response to the renewed diplomatic engagement and fresh economic support measures unveiled by Chinese authorities, stock markets in mainland China and Hong Kong advanced on Wednesday. U.S. stock futures also moved higher, signaling cautious investor optimism. Futures, which are contracts to buy or sell assets at predetermined dates and prices, often serve as early indicators of market sentiment.
Attention also remained focused on the U.S. Federal Reserve, with investors anticipating its forthcoming decision on interest rates, expected later in the day—an announcement that could significantly sway global financial markets.
