This week, top officials from the United States and China are set to engage in high-level trade negotiations aimed at easing the escalating tensions between the world’s two largest economies. The meeting will take place in Switzerland from May 9 to 12, marking the first direct and formal exchange between the two governments since President Donald Trump returned to office in January.
Leading the Chinese delegation will be Vice Premier He Lifeng, according to a statement released by China’s Ministry of Foreign Affairs. Representing the United States will be Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, their respective offices confirmed.
The talks come amid intensifying economic friction. Since retaking the White House, President Trump has imposed a new round of tariffs on Chinese imports, with some rates reaching as high as 145%. In response, Beijing has retaliated with its own set of levies, some topping 125% on American goods. These moves have rattled global markets, disrupted supply chains, and sparked concern among economists and business leaders worldwide. Despite the high stakes, analysts warn that a breakthrough is unlikely in the immediate future. Global trade experts told the BBC that any meaningful progress could take months to materialize.
“This is more about halting the spiral than crafting a final deal,” said Deborah Elms, Head of Trade Policy at the Hinrich Foundation. “You have to start somewhere, and while expectations should be tempered, the fact that both sides are at the table again is still significant.”
Professor Henry Gao, a trade law expert at Singapore Management University and a former legal adviser to the World Trade Organization, echoed this sentiment. “These talks are necessary, but we should not expect miracles. If the history of the 2018 trade talks is any indication, we’re in for a prolonged and difficult negotiation process—possibly lasting a year or more.”
Both sides appear to be entering the negotiations with clear, but divergent, intentions. In a televised interview, Secretary Bessent said that the U.S. is determined to “rebalance the international economic system in a way that better serves American interests.” “My sense is that this round is about de-escalation, not a sweeping new trade agreement,” he said. “Before we can go forward, we need to step back from the brink.”
Meanwhile, Chinese officials emphasized that the current tariffs are causing widespread harm—not only to the U.S. and Chinese economies but also to the broader global trading system.
“If the United States wants to resolve the issue through dialogue, it must acknowledge the severe damage its unilateral tariff actions are causing globally,” a spokesperson for China’s Ministry of Commerce said during a press conference on Wednesday morning.
Chinese state media reported that Beijing’s decision to engage in talks was influenced by three key factors: global pressure for economic stability, national interests, and lobbying from American businesses affected by the trade war.
China is willing to engage in dialogue but has made it clear it will stand firm if provoked.
However, the message from Beijing also carried a firm warning. China remains open to dialogue but will not back down if pushed. “If the United States chooses to continue this trade war, China will fight to the end,” the report declared. Market reaction to the news was cautiously optimistic. Mainland Chinese and Hong Kong stock markets posted gains on Wednesday, lifted by both the announcement of the upcoming talks and a series of domestic economic stimulus measures announced by Chinese authorities. U.S. stock futures also rose, signaling investor optimism heading into the negotiations.
Still, volatility may persist as investors await further developments—not just from the trade talks but also from the U.S. Federal Reserve. The central bank is expected to make an announcement regarding interest rates on Wednesday afternoon, another factor with broad implications for the global economy.For now, the world will be watching Switzerland closely, as Washington and Beijing attempt to ease hostilities and avoid a deeper economic rift.
