Tentative Thaw: US and China Begin Talks to Ease Trade War Tensions

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Tentative Thaw: US and China Begin Talks to Ease Trade War Tensions

 

Top officials from the United States and China are set to meet this week in Switzerland in a bid to ease hostilities in the ongoing trade war that has rattled global markets and strained diplomatic relations. The talks, scheduled from May 9 to 12, will mark the first major interaction between the two economic giants since the start of the year and come at a critical juncture for international trade.

 

Representing China will be Vice Premier He Lifeng, a senior economic policymaker, while the United States will be represented by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. Both U.S. officials confirmed their attendance through formal statements released by their respective offices.

 

The trade conflict between Washington and Beijing reignited after President Donald Trump returned to office, enacting sweeping import tariffs of up to 145% on Chinese goods. China responded with countermeasures, imposing its own set of tariffs reaching up to 125% on American imports. These tit-for-tat actions have destabilized financial markets and raised concerns about prolonged disruption to global supply chains.

 

Speaking to Fox News ahead of the meeting, Bessent said the primary goal was to stabilize relations. “My sense is 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,” he explained. He also emphasized the importance of rebalancing the international economic system to better align with U.S. interests.

 

China, meanwhile, has signaled a cautious but open stance. A spokesperson for the Chinese Ministry of Commerce remarked, “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.” Chinese state media echoed this sentiment, stating that the decision to engage with Washington was made after weighing global expectations, national interest, and the concerns of American businesses. However, the same reports warned that if hostilities persist, China is prepared to “fight to the end.”

 

Despite the diplomatic activity, global trade analysts are not expecting immediate breakthroughs. Deborah Elms, Head of Trade Policy at the Hinrich Foundation, noted to the BBC, “You have to start somewhere, so I'm not saying it isn't worthwhile. Just unlikely to be the launch event people are hoping to see.” Echoing that view, Henry Gao, a law professor at Singapore Management University and former WTO legal officer, predicted a protracted process. “We should expect to see a lot of back and forth, just like what happened last time in 2018. I would expect the talks to drag on for several months or even more than a year,” he said.

 

In response to the announcement of the talks and new economic support measures by Chinese authorities, financial markets in mainland China and Hong Kong saw modest gains on Wednesday. U.S. stock futures also edged higher, offering a tentative sign of investor optimism. Futures, which reflect expected market trends, suggested a positive opening for American markets.

 

The upcoming decision by the U.S. Federal Reserve on interest rates, expected later on Wednesday, adds another layer of uncertainty to the week’s economic developments. As trade talks commence, global markets and political observers alike will be watching closely for any signs of progress in what remains a deeply complex and high-stakes dispute.

 

  Adpated by ASEAN Now from BBC  2025-05-08

 

 

[Gweiloman]

Looks like Trump issued XJP’s posterior in order to get a meeting with some Chinese officials.

 

A deal will be had eventually, but not before Bessent is publicly humiliated for his nonsensical and ludicrous statements.

[JonnyF]

Finally some good news for China. 

 

They better hope the talks go well. 

 

https://asiatimes.com/2025/05/chinas-economy-on-cusp-of-a-deflationary-death-spiral/

 

[Tom100]

Trump has already lost face because XJP has refused to call and beg for tariff reductions. 

 

The drop in Chinese imports will soon cause shortages and price increases in the US -- then Trump's popularity will fall...more

 

 

[Purdey]

Breaking: Xi forces USA to come crawling for a deal.

[spidermike007]

Trump and his goons likely begged China for these meetings. He has secured zero trade deals to date and is starting to look ignorant and clueless, to a stunning degree. 

 

The US needs China far more than China needs the US. 

[Smokey and the Bandit]

12 minutes ago, spidermike007 said:

Trump and his goons likely begged China for these meetings. He has secured zero trade deals to date and is starting to look ignorant and clueless, to a stunning degree. 

 

The US needs China far more than China needs the US. 

Neither side clearly needs the other more—it’s a stalemate. The U.S. faces higher prices and supply chain chaos without China, while China risks job losses and economic contraction without U.S. market access. China’s trade diversification and political resilience give it an edge in enduring pain, but the U.S.’s consumer market is a bigger stick than China’s export reliance.

[Cameroni]

What the Chinese are coming to negotiate? Really?

 

I thought the Nevertrumpers said China doesn't need the US and would refuse to negotiate?

 

So you got it all wrong again? And I was right yet again?

 

So much winning....

 

 

[jas007]

10 minutes ago, Smokey and the Bandit said:

Neither side clearly needs the other more—it’s a stalemate. The U.S. faces higher prices and supply chain chaos without China, while China risks job losses and economic contraction without U.S. market access. China’s trade diversification and political resilience give it an edge in enduring pain, but the U.S.’s consumer market is a bigger stick than China’s export reliance.

In other words, they'll make a deal and move on.  Neither party will be thrilled, but the current situation cannot be sustained.   

 

It'll be interesting to see what kind of deal results. 

[dinsdale]

Unbelievable. Those that froth at the mouth at the mere mention of Trump are at it again. Fact is the Chinese economy is in a mess. This is Xi looking for a way out not the other way around.

[renaissanc]

Trump should not concede anything until the CCP stops sending fentanyl precursers to Mexico and Canada; stops cheating; obeys the WTO rules; stops lying; stops stealing intellectual property; and stops threatening Taiwan. He should keep the tariffs as they are because the CCP won't do any of the above. The longer he tightens the screws, the sooner the CCP will collapse.

[renaissanc]

58 minutes ago, Cameroni said:

What the Chinese are coming to negotiate? Really?

 

I thought the Nevertrumpers said China doesn't need the US and would refuse to negotiate?

 

So you got it all wrong again? And I was right yet again?

 

So much winning....

 

 

This meeting is about what they will talk about. That's all, according to the White House.

[renaissanc]

The CCP has a playbook. They stretch out negotiations for months and months. They will do this with the hope that the Democrat-Marxists win in 2026 and Trump becomes powerless. Nothing will come from these negotiations.

[Eric Loh]

Don’t hang your hopes too high that something substantial will come out of the Switzerland meeting. VP Premier He is only the negotiator. Power to made agreements is with the President or the Premier. China is playing the long game and the agreement can be months if not years to come to a fruition. US economy don’t have months or years before it crashes.

 

[rudi49jr]

2 hours ago, Purdey said:

Breaking: Xi forces USA to come crawling for a deal.

Trump and his cronies have been lying about this for weeks, if not months, that they were busy negotiating a deal with China. And China flat out denied it. Who are you going to believe?

[rudi49jr]

1 hour ago, renaissanc said:

The CCP has a playbook. They stretch out negotiations for months and months. They will do this with the hope that the Democrat-Marxists win in 2026 and Trump becomes powerless. Nothing will come from these negotiations.

The Democrat-Marxists. Wow. I see you’ve been reading too much of the MAGA playbook again. 

[thesetat]

1 hour ago, rudi49jr said:

Trump and his cronies have been lying about this for weeks, if not months, that they were busy negotiating a deal with China. And China flat out denied it. Who are you going to believe?

certainly not you.. 

[thesetat]

Chinese social media is a buzz with news media about this. Their factories closing and thousands sent home for a forced unpaid vacation has the people panicking. Xi had the banking change policies to help sustain loans. Chinese factories in Yiwu are shown as packed full with product and the chinese have already claimed they have not been able to find buyers to replace the American consumer. 

 

I have seen and read both sides of the fence on this in the Chinese media. The normal propaganda channels are bragging that Trump was forced to talks with them. But all the peoples channels are saying the opposite. The americans are also saying the opposite. There is quite alot of debate that this meeting is by chance because both countries were scheduled to be in Switz at the same time. But that also smells as a bold faced lie. I think they have been chatting more than they claim simply because of the impact this is having on the Chinese economy as well as the impact on the American consumer. To say Trump folded would be a lie as well. This could be easily construed as another win for Trump if he manages to get a fair trade deal out of the Chinese. Something not seen in a half of a century. To say Xi won would also be a bold faced lie. Xi is slowly being forced to find a negotiation but at the same time can not show his people he initiated any talks. 

 

The claims in the social Chinese media are that China folded but with good cause. China needs the American consumer. This is the only sure thing.  The Chinese government is bragging about opening talks with trade to Vietnam haha... Everyone knows they can not sustain the commerce that the US does. Not even all the Asian countries combined could do that.  

 

The only thing that is important, meaning who initiated exchanges to meet was not important, is that there is a better deal in trade between the 2 nations. If Trump does not get that then he failed. 

[candide]

4 hours ago, Smokey and the Bandit said:

Neither side clearly needs the other more—it’s a stalemate. The U.S. faces higher prices and supply chain chaos without China, while China risks job losses and economic contraction without U.S. market access. China’s trade diversification and political resilience give it an edge in enduring pain, but the U.S.’s consumer market is a bigger stick than China’s export reliance.

That's right. The other factor is: which of the two leaders is subject to more short-term poliical pressure to end this mess?

[ThreeCardMonte]

5 hours ago, Tom100 said:

Trump has already lost face because XJP has refused to call and beg for tariff reductions. 

 

The drop in Chinese imports will soon cause shortages and price increases in the US -- then Trump's popularity will fall...more

 

 

China is no match for Trump.  The world knows this, except you.

[ThreeCardMonte]

4 hours ago, spidermike007 said:

Trump and his goons likely begged China for these meetings. He has secured zero trade deals to date and is starting to look ignorant and clueless, to a stunning degree. 

 

The US needs China far more than China needs the US. 

Were you present at this meeting to observe the begging?

 

Or did you have access to secure phone lines with a conference call?

 

Exactly who was the beggar?  Did you take notes on what was said?

 

We would to hear your first hand experience.

[Chomper Higgot]

4 hours ago, Cameroni said:

What the Chinese are coming to negotiate? Really?

 

I thought the Nevertrumpers said China doesn't need the US and would refuse to negotiate?

 

So you got it all wrong again? And I was right yet again?

 

So much winning....

 

 

Perhaps wait for the outcome of the ‘negotiations’.