U.S. and Chinese officials are finally set to meet for trade talks, a month after Trump hiked tariffs to a sky-high 145%
After weeks of posture, the United States and China should finally meet, paving the way for a potential de-escalation to a trade war between the two biggest economies in the world.
According to statements by the United States government, the US Treasury Secretary Scott Bessent and the US representative Jamieson Greer will go to Switzerland on Thursday, where they are expected to meet Chinese Deputy Prime Minister He Lifeng, the main economic representative of Beijing. The meeting will take place between May 9 and 12.
The Chinese Foreign Ministry confirmed He goes to Switzerland, where he will also meet Swiss officials.
Last Friday, the Chinese Ministry of Commerce said that it “assesses” a Washington offer to start talks, and noted that senior US officials had repeatedly expressed their desire to start trade negotiations with Beijing. US President Donald Trump claimed At the end of April, he spoke to the Chinese President Xi Jinping prices, but refused to give details.
The planned meeting in Switzerland is the first public commitment to start commercial negotiations since Trump imposed the prices for the first time on China in February.
Reprisals between the United States and China have raised prices at incredibly high levels. China is currently imposing a 125% rate on American products, while the United States imposed a tariff of 145% on Chinese products. However, the two governments have dug scanning exemptions for goods such as pharmaceutical products, semiconductors and consumer electronics.
Asian markets have barely evolved despite the news that the United States and China could start to defuse. The Hong Kong Hang Seng index increased by 0.2% and approximately 0.6% of China CSI in China, at 4:00 p.m. Hong Kong. American term contracts also reflected a similar feeling with the Dow Jones and S&P term contracts gaining 0.42% and 0.43% respectively.
However, de -escalation could be welcome from the news for the two biggest economies in the world while Trump's trade war is starting to have an effect.
Data from the end of April already show a drop in imports from China to the United States, the Executive Director of Los Angeles, Gene, Seroka, recently warned that retailers could soon have as little as five weeks of full inventory. The lower stocks could mean higher prices and rumbles of the supply chain.
China announced key policy changes on Wednesday, including rate cuts, to strengthen its economy.
This story was initially presented on Fortune.com
