US and Chinese officials are preparing for critical trade talks this week in Switzerland. Perhaps most ambitiously, they hope to make a small dent in the continued tensions that mar relations between the world’s two largest economies. Chinese Vice Premier He Lifeng will lead the Chinese delegation. The dates of his visit are May 9 – May 12. The Chinese Ministry of Foreign Affairs confirmed He Lifeng’s attendance, while a spokesperson from China’s commerce ministry emphasized the importance of addressing unilateral tariff measures imposed by the United States.
Scott Bessent, the US Treasury Secretary will be Washington’s spokesperson in these critical conversations. Also in attendance will be Jamieson Greer, the chief of staff for US Trade Representative (USTR). There is responsibility on both sides to have a serious conversation about what constructive trade policies should look like. These policies have chilled relations and caused severe economic backlash to national security.
In retaliation, Beijing has placed large tariffs on American exports. The truth is that some of those things even have tariffs higher than 125%. This action has increased tensions and forced both countries to rethink their trade strategies.
“A positive attitude is needed and a pragmatic, flexible, and results-oriented approach is necessary,” said the Chinese commercial attaché. “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.”
Given the growing trade war, both parties see that some kind of tactical de-escalation is in order. Mr. Bessent remarked on the objective of the upcoming meetings, indicating 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.”
The stakes could hardly be higher for either side. A negotiated resolution would certainly promote a more constructive economic relationship, along with greater economic stability. The upcoming talks are seen as an opportunity to bridge gaps and foster a cooperative environment, allowing for future negotiations on broader trade agreements.