China’s trade envoy He Lifeng has met United States Treasury Secretary Scott Bessent in Switzerland for talks aimed at easing a trade war between the superpowers that is roiling global markets.
The first official engagement, since the US slapped a 145 percent tariff on Chinese goods, prompting a retaliatory 125 percent duty from China, began on Saturday at an undisclosed location in Geneva, Switzerland, according to the Chinese state news agency Xinhua.
A motorcade of black cars and vans was seen leaving the home of the Swiss ambassador to the United Nations in the suburb of Cologny, The Associated Press news agency reported.
A diplomatic source, speaking to AP on condition of anonymity because of the sensitivity of the meeting, said the sides met for about two hours before departing for a previously arranged luncheon.
The trade dispute, which effectively amounts to a mutual boycott of products, was prompted by US President Donald Trump last month when he announced sweeping duties on almost every country in the world, which are now subject to a 90-day reprieve while negotiations take place.
Experts believe China may be looking for the same 90-day waiver as well as a reduction of the 145 percent tariff – Trump suggested that it could be reduced to 80 percent, saying in a Truth Social post on Friday that the amount “seems right”.
Trump’s press secretary, Karoline Leavitt, said on Friday that the US would not lower tariffs unilaterally, adding that China would need to make concessions as well.
Bessent has said the meetings in Switzerland would focus on “de-escalation”.
“The best scenario is for the two sides to agree to de-escalate on the … tariffs at the same time,” said Sun Yun, director of the China programme at the Washington, DC-based Stimson Center, adding even a small reduction would send a positive signal.
“It cannot just be words,” she said.
Distrust running high
Trump has justified the punitive tariff by citing unfair trade practices and accusing Beijing of failing to curb the export of chemicals used to produce fentanyl, a lethal synthetic opioid.
China, for its part, says it will not bow to “imperialists” and bullies.
With distrust running high, both sides have been keen not to appear weak, and economic analysts have low expectations of a breakthrough.
Trump has suggested the discussions were initiated by China. Beijing said the US requested the discussions and that China’s policy of opposing US tariffs had not changed.
Swiss Economy Minister Guy Parmelin met both parties in Geneva on Friday and said the fact that the talks were taking place was already a success.
“If a roadmap can emerge and they decide to continue discussions, that will lower the tensions,” he told reporters on Friday, saying talks could continue into Sunday or even Monday.
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