Although it is difficult to give up each other after weeks of escalating tariffs, the US and China have their own motivation to sit at the negotiating table in Switzerland.
After weeks of tensions in the tariff match, US and Chinese officials agreed to meet in Geneva, Switzerland today to start negotiations. Observers say this is an indispensable result after the process of “liver exam, eye -catching”, in which the two countries describe the opponent as a more desperate side.
Tensions between the United States and major trading partners escalated significantly after President Donald Trump took office for the second term. The White House boss said that the US is being treated unfairly and imposed a reciprocal tax on a series of economies, which is particularly strong with China.
Chinese goods exported to the United States are taxed 145%, leaving from 10%that Mr. Trump pressure in early February, some products even taxable up to 245%. Beijing “eat, paid”, imposed 10-15% tax for some US items, then increased tax to 125% for all goods imported from the world’s number one economy, declaring “confrontation to the end” with Washington.
“The negotiation takes place at this time because the two sides realize that this is when they can sit at the negotiating table without being considered to give in to the enemy,” said Stephen Olson, a researcher at the ISEAS-Yusof ISOF ISOF, Singapore.
Container of goods at Oakland Port, California, USA on April 3. Image: AP
The Chinese Ministry of Foreign Affairs on May 7 emphasized the negotiation “took place at the request of the US”. The agency also described this as a goodwill action of Beijing with Washington, that China “responded to a call from US businesses and consumers”.
The Chinese Ministry of Commerce on the same day said Beijing decided to participate in negotiations with Washington after evaluating recent messages from US officials and other factors such as expected from the world, national interests and calls from consumers, American businesses.
The Trump administration gave the opposite message again, declaring that China was the party “really wanted to negotiate because their economy was collapsing”. “They said we proposed? I think they should review their documents carefully,” the White House owner responded to the same day.
In fact, both the United States and China are negatively affected by bilateral trade tensions.
The purchase administrator index (PMI) in April decreased to 49 points, the lowest since December 2023. PMI over 50 points reflect the expanded production activities and vice versa. The survey results conducted by Caixin showed that China’s service operations in April to the lowest 7 months.
Theo BBCChinese exporters are also struggling to manage high taxes from the US. Inventories are increasing, although they make a tough statement and seek markets other than the US.
“I think China realized that there was a better agreement,” Bert Hofman, a professor at Dong A Institute, Singapore National University, said. “Therefore, they choose a more realistic approach, and say ‘Okay, we need to start negotiating’.
On the other side of the Pacific bank, the instability of President Trump’s tariff policy has contributed to the US economy for the first time in three years. US GDP in the first quarter fell 0.3%, mainly due to enterprises to increase goods imports before the new tax rates took effect.
This development caused most economists to reduce the forecast of US growth. The industries that depend on goods imported from China are particularly concerned. The owner of a toy company in California said they “witnessed the complete collapse of the supply chain”.
Mr. Trump himself also admits that American consumers will “feel pain”. The support rate of the US president has slipped due to inflation concerns and the risk of recession. The results showed that more than 60% of Americans said Mr. Trump was focusing on tariffs.
“The two sides are under pressure to reassure certain when the market, businesses and people of each country are increasingly bewildered,” Mr. Olson said. “The negotiations in Geneva will target this goal.”
Answer interview Fox News After the US -China negotiation information was published, US Finance Minister Scott Bessent said the two countries were “beneficial” when negotiating because the current tariffs could not be maintained for a long time.
“We don’t want to be separated. What we want to be equal trade,” Mr. Bessent said. “We have to go down the ladder before we can move forward.”
Mr. Bessent and US trade representatives Jamieson Greer will lead the American delegation. China’s representative was Deputy Prime Minister Ha Lap Phong.
US President Donald Trump (left) and Chinese President Xi Jinping. Image: AFP
Observers evaluate the US – China began to negotiate as a positive signal, but not too optimistic about the achieved results. Bill Reinsch, a researcher at the International Strategy and Research Center (CSIS), said one of the big obstacles for both the United States and China is the difference in the negotiation strategy.
“Mr. Trump chose to approach from the top, want to meet Chinese President Xi Jinping and think that if the two leaders agreed, they could reach a large agreement, then directed his subordinates to build detailed content,” Mr. Reinsch told him. AFP. “China has the opposite direction. They want issues to be solved first, reaching agreement at the expert level before the leadership of the two sides met.”
Olson, a researcher at the ISEAS-YUSOF ISOF ISES-Yusof, has the same viewpoint.
“Systematic tensions in US -China trade relations will not be resolved soon,” Mr. Olson said. “The meeting in Geneva will only bring statements like ‘frank dialogue’ and desire to maintain dialogue.”