1. Constructive Talks Signal Shift in Tone Between Two Economic Powers
Trade negotiations between the United States and China extended into a second day in Geneva on May 11, 2025. The meetings mark the first direct dialogue since both countries imposed tariffs exceeding 100% on each other’s imports.
Chinese Vice Premier He Lifeng met with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, in what White House officials described as “friendly but constructive” discussions. The talks, which lasted more than 11 hours across two days, are aimed at rebalancing trade relations and preventing further economic damage.
President Donald Trump praised the talks, calling them a “total reset” in a Truth Social post. He emphasized the mutual benefit of an open Chinese market for American businesses, describing the discussions as having achieved “great progress.”
2. Both Sides Tread Carefully Amid High Tariffs and Political Pressures
While the meetings have been described as productive, the atmosphere remains tense. The US is pushing to reduce its $295 billion trade deficit with China and urging structural reforms in Beijing’s economic policies. These include requests for China to shift toward domestic consumption and reduce its export-driven model.
China, in turn, is demanding clarity on US expectations, tariff reductions, and equal treatment on the global stage. A commentary by China’s Xinhua News Agency criticized US tariff policies but welcomed the talks as a “positive and necessary step.”
Despite strong rhetoric, both delegations have been cautious not to appear conciliatory. Analysts expect only modest progress, with further talks likely required to make significant breakthroughs.
3. Neutral Venue and Global Implications
The talks took place at the residence of Switzerland’s UN ambassador in Cologny, a peaceful Geneva suburb. Switzerland was chosen due to its neutral stance and prior diplomatic engagement with both countries.
The backdrop of the negotiations includes additional trade deals in progress, as mentioned by White House adviser Kevin Hassett. He indicated more announcements may be imminent, with a UK-style deal serving as a model for other countries.
Vice Premier He is also scheduled to meet WTO Director-General Ngozi Okonjo-Iweala, signaling the broader global implications of these talks. As investors await outcomes, any signal of de-escalation—such as tariff waivers or scheduling of further talks—could be seen as progress in reducing global trade tensions.
