BUSINESS
The US and China's Trade Tug-of-War in Geneva
Geneva, SwitzerlandSat May 10 2025
The United States and China started serious trade discussions in Geneva.
This meeting happened after Donald Trump hinted at reducing tariffs on Chinese goods. This move was seen as a way to ease tensions between the two economic giants.
China, on the other hand, wants the US to show real commitment by removing tariffs on its exports.
The talks are led by Vice-Premier He Lifeng from China and Treasury Secretary Scott Bessent from the US. This is a big deal because both countries want to avoid a full-blown trade war.
However, China is worried about the US making separate trade deals with other countries, like the UK. These deals could hurt China's interests.
The Chinese government has been clear about what it wants. It wants the US to stop its "wrong practices" and lift tariffs. This is seen as a necessary step for any progress in the talks.
China is also keeping an eye on how other countries are reacting. For example, it imposed high duties on an Indian pesticide after India made a trade move that seemed to favor the US. This was a warning to other countries not to use China as a bargaining chip.
The trade talks come after weeks of debate in Beijing. Some officials wanted the US to show good faith first, like cutting tariffs, before starting talks.
China is also concerned about the US pushing its allies to create a new trade order without including China. This could change the global trade landscape significantly.
Meanwhile, China's trade data for April showed that its international commerce is still strong. This is despite the US tariffs, thanks to increased shipments to other countries, especially in Southeast Asia.
The outcome of these talks will be crucial. It will show whether both countries can find common ground or if the trade war will continue.
continue reading...
questions
If the US and China can't agree on tariffs, will they at least agree to a trade of jokes instead of goods?
If the US and China can't agree on tariffs, will they at least agree on who gets to keep the bell?
Are the trade talks in Geneva a distraction from deeper geopolitical maneuvers by both countries?
actions
flag content