High-level trade negotiations between the United States and China were held in Geneva, Switzerland on Saturday (May 10th). The American team was led by U.S. Treasury Secretary Bennett, while the Chinese team was headed by Chinese Vice Premier He Lifeng. This meeting is seen as the first step towards easing the ongoing trade war between the two countries.
In recent weeks, tensions between the United States and China have escalated due to tariff issues. The U.S. imposed a 145% tariff on Chinese goods, while China reciprocated with a 125% tariff on American products, severely hampering trade between the two nations.
According to reports from Reuters, the exact location of the meeting has not been disclosed. However, witnesses saw both delegations leaving the Swiss residence of the United Nations ambassador in Cologny around lunchtime.
Earlier on Saturday, Bennett and other U.S. officials, including U.S. Trade Representative Jamieson Greer, were seen leaving their hotel with smiles on their faces before heading to the negotiation venue. Bennett declined to speak to the media. Meanwhile, a Mercedes van with tinted windows was spotted leaving the hotel where the Chinese delegation was staying.
The U.S. is seeking to reduce its trade deficit with China and convince Beijing to move away from its mercantilist economic model to contribute more to global consumption. This shift would require politically sensitive domestic reforms from China.
Beijing, on the other hand, criticizes what it perceives as external interference and hopes Washington will lower tariffs, clarify which products China should purchase more of, and treat China fairly.
Reuters reported that due to high levels of mutual mistrust and reluctance to appear weak, economic analysts have low expectations for a breakthrough in the first round of negotiations.
Earlier this week, U.S. Treasury Secretary Bennett urged the public not to expect a major trade agreement to be reached at this meeting but acknowledged its importance as a step in the negotiation process.
Swiss Minister of Economy Guy Parmelin met with both Chinese and American negotiation teams in Geneva on Friday and considered the fact that negotiations were taking place a success.
On Friday, he stated, “If we can establish a roadmap and both sides decide to continue discussions, then tensions will ease.” He mentioned that negotiations could continue until Sunday or even Monday.
Greer said in an interview with CNBC on Thursday, “The focus of these negotiations is: Can we establish a stable situation and perhaps build upon that for further cooperation.”