During closed-door high-level talks between China and the United States held in Geneva, Switzerland, the two sides reached a rare consensus on core issues, including tariffs. The two sides announced "significant" and "substantial" progress and pledged to establish a trade consultation mechanism, sending a positive signal toward easing the recent tensions in bilateral relations. The United States will reduce its reciprocal tariffs on Chinese goods to 10% within 90 days. China will also reduce its tariffs on U.S. goods to 10%. Furthermore, China will take necessary measures to suspend or cancel non-tariff countermeasures against the United States effective April 2, 2025.
As U.S. tariffs and other measures related to fentanyl will remain in place, the United States will impose a total tariff of 30% on goods imported from China.
Amidst continued global attention on Sino-US trade tensions, Chinese and US officials held two days of closed-door high-level talks in Geneva, Switzerland, last Saturday. The "China-US Geneva Economic and Trade Talks Joint Statement," released by Xinhua News Agency on the 12th, stated that the United States would suspend the additional 24% of its ad valorem tariffs on Chinese goods for an initial 90 days, while retaining the remaining 10% tariff imposed on these goods as stipulated in the executive order. The tariffs imposed on Chinese goods in April were also canceled. China reciprocated by reducing its tariffs on US goods to 10% and rescinding its non-tariff countermeasures against the United States that took effect on April 2nd. The English version of the "Joint Statement" was published on the White House official website that same day, with largely identical language regarding bilateral tariff rates.
U.S. Treasury Secretary Scott Besant and Chinese Vice Premier He Lifeng said separately on Sunday that the two sides will establish a "China-U.S. economic and trade consultation mechanism" on the existing basis to hold regular dialogue on trade issues.
In an interview with Radio Free Asia on Monday (the 12th), independent Chinese scholar Zhang Lizhou stated that the meeting between He Lifeng and Bessant in Geneva, and the "significant progress" achieved, was a milestone in easing Sino-US relations, but was largely symbolic. He added that many details remain undisclosed: "Both sides had different expectations for this meeting. The 'significant progress' itself was limited to formally establishing a mechanism for bilateral trade consultations, marking the beginning of a lengthy trade negotiation process for both countries."
He Lifeng told a news conference that China and the United States had agreed to establish a "trade consultation mechanism" during two days of trade talks focused on tariffs. Li Chenggang, China's Vice Minister of Commerce, who also attended the meeting, added that the mechanism would "carry out regular or irregular exchanges on relevant trade issues."
Senior US and Chinese officials expressed positive attitudes and stated that they would hold regular consultations
Bessant stressed that the negotiations had made "substantial progress." He added that US President Trump had "fully grasped" the results of the negotiations and expressed support for the "productive dialogue."
U.S. Trade Representative Jamieson Greer, a member of the U.S. delegation, added that the new agreement "is expected to reduce the U.S. global merchandise trade deficit of $1.2 trillion." He called the negotiation process with China "swift and pragmatic" and praised the Chinese representatives as "tough but professional negotiators."
Zhang Li, who studies the direction of Sino-US relations, said that during the negotiations, both China and the US sought to maximize their respective interests. "During this meeting, the two sides at least reached a consensus on trade balance. For China, this reduces uncertainty in Sino-US relations and is a very important beginning. For the US, the Geneva talks are highly regarded, believing that a deal was actually reached. This is consistent with the approach of the previous Trump administration, which was more keen on the symbolic significance of such negotiations, which may be even more important to the Trump administration."
Trump says China-U.S. negotiations are "fully restarted"
US President Trump, via his social media platform Truth Social, described the China-US talks as "friendly and constructive," emphasizing, in capital letters, "GREAT PROGRESS MADE!" He did not specify whether this included concrete measures such as the removal or reduction of tariffs. White House economic adviser Kevin Hassett stated that China is "very, very eager" to resume trade talks with the US.
Chinese scholar Mr. Guo (whose full name is not available), told this station that there are huge obstacles in the US-China trade relationship, and that this negotiation merely reduces the risk of further deterioration in bilateral relations: "Both sides are exaggerating the symbolic significance of this to mask the difficulties of the trade negotiation process and the US's expectations for a trade war, such as exerting lasting pressure on China. China is also quite vigilant about this. China realizes that negotiations are both an irresistible temptation and a trap. China seems to be following the American art of negotiation and is forced to step into an irresistible trap."
Despite the positive tone of the official statement, the two sides remain sharply divided on the tariff issue. Trump previously suggested that a reduction of the 145% tariff on China to 80% might be "more appropriate," while Chinese media commentary repeatedly emphasized that the US should "correct its unilateral tariff practices." A People's Daily commentary on May 10th stated that it was unrealistic to resolve the issue through just one or two rounds of tariff negotiations. Does this seem like preparation for a protracted war?
According to Reuters, the United States has a clear goal this time: to reduce the $295 billion trade deficit in goods with China, and to force China to abandon what the United States calls its "mercantilist economic model" and encourage China to increase domestic consumption, thereby achieving global economic rebalancing. Achieving this goal will require China to carry out sensitive political reforms.
Guizhou scholar Wang Peng said in an interview with this station that he concluded the two-day Sino-US trade negotiations in Geneva, Switzerland was a major victory for the United States: "It was just like the effect of Trump's first meeting with North Korean leader Kim Jong-un after taking office. Treasury Secretary Benson also catered to Trump's style and established that the beginning of the negotiations between China and the United States set the tone for the trade war."
The talks took place in the Geneva suburb of Cologne, at the residence of the Swiss ambassador to the United Nations. Reuters reported that the atmosphere was tense but orderly, with "black Mercedes-Benz cars frequently circling the area, and security was tight at the villa complex under bright sunshine." Switzerland once again served as a neutral mediator, demonstrating its role in international diplomacy.
