Geneva (Brussels Morning Newspaper) – On Saturday, the U.S. Treasury Secretary and the lead trade negotiator engaged in discussions with senior Chinese officials in Switzerland, seeking to alleviate tensions that could sever trade between the two largest economies and harm the global economy.
As reported by the Xinhua News Agency, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson have started meetings in Geneva with a Chinese delegation led by Vice Premier He Lifeng.
What prompted China to agree to trade talks?
On Wednesday, Lin Jian, the spokesperson for China’s foreign ministry, stressed that “the talks are being held at the request of the US.
“The commerce ministry characterised this as a gesture of goodwill towards Washington, stating it was responding to the “calls of US businesses and consumers. “
Why did US officials meet Chinese leaders in Geneva?
According to BBC, the Trump administration asserts that Chinese officials are eager to engage in business as “their economy is collapsing.” Trump stated at the White House on Wednesday, “They said we initiated? Well, I think they ought to go back and study their files.”
How are high tariffs affecting global trade flows?
Tensions between Washington and Beijing have escalated since US President Donald Trump declared his reciprocal tariffs earlier this year. Both nations are employing a tit-for-tat approach, resulting in current duties of 145% on Chinese products entering the US, while US goods imported into China face levies of 125%, with some exceptions.
Such high tariffs effectively mean the countries are boycotting each other’s goods, disrupting last year’s trade that exceeded $660 billion. Prior to the negotiations, Trump indicated on Friday that the U.S. might reduce its tariffs on China, stating in a Truth Social post that “80% Tariff seems right! Up to Scott.”
What concerns does the US have about Chinese tech?
During Trump’s first term, the U.S. claimed that China employs unfair methods to gain advantages in advanced technologies, including quantum computing and autonomous vehicles. This involves pressuring U.S. and foreign companies to surrender trade secrets for market access, providing government subsidies to local tech firms, and engaging in the outright theft of sensitive technologies.
