Top officials from the US and China are set to meet in Switzerland on Saturday (May 10) as a step to resolve global economic instability and trade wars. Reuters reported that Chinese economic policymaker He Lifeng will meet with US Treasury Secretary Scott Besant and chief trade negotiator Jamieson Greer in Geneva.
US equity index futures rose immediately after Washington announced the meeting on Tuesday (May 6) night. Stock markets in China and Hong Kong also showed an upward trend on Wednesday morning.
Tensions between the US and China have reached a peak over the past few weeks with reciprocal tariffs, resulting in import tariffs on goods exceeding 100 percent. US Treasury Secretary Besant has described the situation as “almost a trade blockade.”
The talks in Geneva will focus on tariff reductions, tariffs on certain products and US export controls, Reuters reported.
In an interview with Fox News after the meeting was announced, Besant said, “I think the main goal of this meeting will be to reduce tensions.”
China’s Ministry of Commerce also confirmed the meeting at the US request. In a statement, China said, “China has agreed to hold talks in light of the world’s expectations, China’s interests and the demands of US industry and consumers.”
However, China warned, “There is an old Chinese proverb that it is important to hear what is said, but it is even more important to see what is done. If the US says one thing and does another, or exerts pressure and blackmail under the guise of talks, China will never agree to it.”
China’s export-reliant manufacturing sector is now under great pressure. Many analysts have lowered China’s economic growth forecast for 2025. Japanese investment bank Nomura has warned that 16 million people in China could lose their jobs as a result of the trade war.
China’s central bank announced new monetary stimulus on Wednesday, including cutting interest rates and increasing liquidity in the banking system. Analysts described it as a strategic and measured move.