The US Secretary of the Treasury, Scott Bessent, and the US Trade Representative, Jamieson Greer, are set to travel to Switzerland and meet with Chinese Vice Premier Ho Lifeng, who serves as the lead figure for China in economic and trade discussions with the US. This marks the first official contact between the two sides since the start of the US-China trade war and is seen as a crucial step towards opening negotiations opportunity by observers.
Experts believe that China is now ready for negotiations, but President Trump is not in a hurry. The US is first settling trade talks with other countries, keeping the initiative in Trump’s hands.
According to statements released by the US Treasury and the Office of the Trade Representative, Bessent and Greer will depart for Geneva on Thursday (May 8) for discussions with Swiss President Karin Keller-Sutter on reciprocal trade issues. Additionally, Greer will meet with staff from the US delegation to the World Trade Organization (WTO).
The Chinese Ministry of Foreign Affairs announced early on May 7 that Vice Premier Ho Lifeng will visit Switzerland from May 9 to 12 to hold talks with Swiss leaders and related parties. It was stated that “Vice Premier Ho Lifeng, as the lead figure for China in economic and trade negotiations, will hold talks with US Treasury Secretary Bessent.”
Earlier, the Chinese Ministry of Commerce also announced its intention to re-engage with the US. A spokesperson for the Commerce Ministry claimed that China had taken decisive and strong countermeasures against US tariffs and, following evaluations, had agreed to engage with the US after continuous rumors from the US side about discussing tariff issues with China.
At a routine press conference on May 6, a spokesperson for the Chinese Ministry of Foreign Affairs reiterated the stance on the trade war, stating “We will fight to the end, while keeping the door open for negotiations.”
Economic analyst Wu Jialong from Taiwan expressed to a media outlet that China has been trying to cover up its vulnerability and save face. Wu pointed out that Xi Jinping’s handling of the US tariffs issue with nationalist sentiments has backfired and dragged down the Chinese economy.
Since President Trump’s announcement of global tariff policies on April 2, China retaliated, resulting in the US imposing tariffs as high as 145% on many Chinese imports. The White House mentioned that tariffs on products such as electric cars and injectors, in addition to fentanyl retaliatory tariffs and various tariffs imposed under Section 301, could amount to an actual rate of up to 245%. China has also raised its average tariff on US goods from 84% to 125%.
Over the past month, China’s foreign trade industry has suffered significant losses, leading to business closures, increased unemployment, and widespread complaints within the industry circulating on social media.
Chinese expert Wang He stated in an interview that China had hoped for global cooperation against Trump, but countries focused on negotiating with the US individually, leaving China isolated internationally. Wang noted that China had expected chaos under US tariff retaliation but didn’t achieve the desired outcome, leading to a significant impact on the Chinese economy. As a result, China had no choice but to set aside its pride and come to the table for negotiations, marking a significant concession in the ongoing tariff battle.
Treasury Secretary Bessent previously mentioned that such high tariffs are unsustainable, effectively creating a “real trade ban” between the world’s two largest economies.
President Trump stated at the White House that the Chinese government wants to negotiate with the US due to the immense pressure the Chinese economy is facing from US tariffs.
“They want to see me, I said, ‘Get your top people,’ and their top people called yesterday,” Trump told the media during a meeting with Canadian Prime Minister Mark Carney. “They want to make a deal. They’re suffering much more than I’d ever let on. I’m just doing to make a great deal,” he added.
Regarding the decision to hold talks in a third country, Wu Jialong emphasized that both the US and China lack a home field advantage. With China’s current weaker position in the negotiations, a neutral ground like Switzerland might provide a more comfortable setting for Chinese representatives.
However, Wu also noted that during Trump’s first term, negotiations between Beijing and Washington continuously shifted between the US and China. Engaging in discussions in a third country may signal a lack of further negotiations if the talks do not yield positive results this time.
China expert Wang He highlighted that choosing a neutral third country indicates equality and acceptance by both parties, reflecting a common practice in international relations.
Previously, there were rumors about Xi Jinping communicating with Trump and high-ranking Chinese officials privately discussing trade issues with the US. China denied these claims, but reports suggest that China quietly reduced tariffs on certain US products, especially high-tech items like semiconductors.
Wang He stressed that the Trump administration aims to use tariffs as leverage to force China to negotiation and open up its market. Trump is proactive and maintains a flexible stance, while China, though in a weak and passive position, remains steadfast and determined in its rhetoric. The two sides have maintained various levels and forms of contact, with China playing word games around the nature of these engagements, claiming that contact is not equivalent to formal negotiations. Wang noted the clear contrast between Trump’s flexible diplomacy and China’s rigid stance.
In assessing the potential outcomes of US-China negotiations or the future direction of the trade war, Wu Jialong pointed out that during Trump’s first term, extensive negotiations with China yielded minimal results, with agreements failing to materialize or being implemented temporarily at best. He suggested that the US may not be inclined to engage in discussions this time, especially after imposing tariffs as high as 145% on Chinese goods, despite engaging in discussions with countries like Canada, Mexico, Taiwan, Japan, and even Vietnam.
Wu added that the US has recognized a more serious issue, beyond Xi Jinping, which lies in the nature of China’s one-party system where economic benefits ultimately accrue to the ruling elite. By allowing China into the globalization fold, Western nations inadvertently bolstered an authoritarian regime. Trump’s current strategy appears aimed at dismantling this system before reconstructing a democratic, rule of law, free, and human rights-respecting China.
He indicated that the US’s intent behind these negotiations is to issue an ultimatum and demonstrate a more diplomatic approach before resorting to more aggressive measures. Wang projected that the future of the US-China trade war remains uncertain, with both sides engaging in a mix of discussions and confrontations without immediate resolutions. Wang noted that Trump plans to secure trade agreements with some countries this week, thereby maintaining an active stance, leaving China in a more reactive position in negotiations over US-China tariffs. “China is now preparing for negotiations, but Trump is not in a hurry. He will resolve tariffs with other countries first. Once a tariff alliance is established, China will find it challenging, and the US will hold more cards. The initiative is in Trump’s hands.”