US and China Start talks on Easing Trade war

Source Credit : Reuters

Chinese Vice Premier He Lifeng initiated discussions with U.S. Treasury Secretary Scott Bessent early on Saturday in Geneva, marking a crucial first move towards resolving a trade conflict that is causing turmoil in the global economy.

Bessent and He convened in Geneva following weeks of escalating tensions, resulting in import duties on goods between the world's two largest economies exceeding 100%.

The ongoing trade dispute, along with the recent decision by U.S. President Donald Trump to impose tariffs on numerous countries, has significantly impacted supply chains, caused instability in financial markets, and raised concerns about a potential global economic downturn.

The venue for the negotiations in the Swiss diplomatic center was not disclosed to the public. Nevertheless, observers spotted both delegations departing from the residence of the Swiss ambassador to the United Nations in the picturesque suburb of Cologny during the midday hours.

More than two hours prior, U.S. officials, including Bessent and U.S. Trade Representative Jamieson Greer, were seen leaving their hotel en route to the talks. They were dressed in red ties and adorned with American flags on their lapels, exuding confidence and patriotism. Despite the media's attempts to engage, Bessent chose to remain silent.

Simultaneously, Mercedes vans with tinted windows were observed departing from a hotel where the Chinese delegation was lodged on the shores of Lake Geneva, while runners gearing up for a marathon were seen warming up under the bright sunshine.

The United States is actively working to decrease its trade deficit with China and persuade Beijing to abandon what is perceived as a mercantilist economic approach. This effort includes encouraging China to play a more significant role in global consumption, which would necessitate implementing potentially controversial domestic reforms.

Beijing has strongly opposed what it perceives as external interference. The Chinese government is calling for Washington to reduce tariffs, specify the desired increase in Chinese purchases, and treat China as an equal partner on the global stage.