GENEVA — The United States and China have officially initiated their first high-level trade talks in over two years, aiming to ease tensions that have rattled global markets. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet in Switzerland on May 8-9, marking a significant step toward dialogue amid escalating tariffs and supply chain disruptions.

The US Treasury confirmed that Bessent’s trip is focused on laying the groundwork for broader negotiations. Chinese state media and the Ministry of Commerce echoed this, stressing that Beijing is engaging “in response to global expectations and calls from US industries and consumers.”

Focus on De-escalation, Not a Grand Bargain

In a recent interview with Fox News, Bessent downplayed expectations for a sweeping deal, saying the initial talks aim to “de-escalate tensions first before moving forward.” He added, “This is not about the grand trade agreement yet. We have to find common ground before we can tackle bigger issues.”

Chinese officials have insisted that any dialogue must be based on “mutual respect and equality.” They emphasized that Washington must acknowledge the damage caused by its tariff policies and adjust its stance if meaningful progress is to be made.

Global Implications and Domestic Pressures

The talks come at a time when both economies are under strain. In the US, major business lobbies have warned that prolonged tariffs are weighing heavily on consumers and manufacturers. In China, an export slowdown has coincided with rising unemployment, adding pressure on leaders to stabilize external ties.

European officials, watching closely, have expressed hope that the Geneva talks can prevent a further breakdown in global trade rules. “Both sides have an interest in finding an off-ramp,” noted one EU trade diplomat.

Parallel Diplomacy and the Road Ahead

Bessent revealed that the timing of the talks was partly coincidental. “I was heading to Europe for talks with the Swiss, and then we learned the Chinese team would also be there. So we decided to meet over the weekend.”

While both Washington and Beijing have signaled openness to further dialogue, key sticking points remain, including intellectual property rights, technology transfers, and China’s state subsidies.

For now, both sides appear aligned on one thing: that the current tariffs — some exceeding 25% — have reached levels akin to an economic embargo, hurting both countries’ economies and global growth.

The world will be watching closely as the two giants attempt to cool tensions that have shaped trade and geopolitics for much of the past decade. (zai)