As the U.S. and China gear up for high-stakes trade negotiations in Switzerland, Beijing has called on Washington to demonstrate sincerity by removing steep tariffs. China’s Commerce Ministry spokesperson, He Yadong, stated that the U.S. must correct what China sees as economic wrongdoing by canceling unilateral trade penalties. This demand comes as both nations enter their first formal talks since tensions flared, with the U.S. maintaining a 145% tariff on most Chinese goods—a policy President Donald Trump reaffirmed just hours earlier.
The talks, scheduled for May 9 to 12, will feature U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meeting with Chinese Vice Premier He Lifeng. These discussions are viewed as a pivotal moment in the ongoing trade dispute, which has strained both economies. Despite firm pre-talk rhetoric, the announcement of dialogue has stirred cautious optimism among observers who hope for a path toward easing tensions and avoiding further economic fallout.
Both countries are feeling the heat at home. The U.S. economy has recorded its first contraction since 2022, while China’s factory activity is experiencing its sharpest decline since late 2023. These signs of weakness are pressuring both governments to find common ground. At a press conference, Chinese Foreign Ministry spokesman Lin Jian underscored that China remains resolute in defending its rights and pursuing fair trade principles on the international stage.
Since returning to office, President Trump has aggressively raised tariffs on Chinese imports, while Beijing has retaliated with its own 125% tariffs on selected U.S. goods. The standoff has rattled global supply chains and contributed to market volatility. Any progress in the Switzerland talks could potentially reshape global trade policy, but negotiators face major hurdles before a resolution is in sight.
Chinese state media reports suggest Beijing’s decision to engage in talks factored in global expectations and economic appeals from American businesses. However, the same reports emphasized that if the U.S. continues to escalate the trade war, China is prepared to fight it to the end. In response to the negotiation news and economic stimulus announcements, financial markets in China and Hong Kong rallied, reflecting investor hope for stability amid growing uncertainty.
Source: Nairametrics