Background on Key Figures and Context
The United States, represented by Treasury Secretary Scott Bessent, Commerce Representative Jamieson Greer, and Vice Premier He Lifeng of China, recently engaged in face-to-face talks to de-escalate the ongoing trade war. The negotiations took place in Ginebra, Switzerland, aiming to address the significant trade deficit that the US faces with China.
Scott Bessent, the Secretary of the Treasury, reported “substantial progress” in the discussions with top Chinese economic officials. He mentioned that President Donald Trump is aware of the productive conversations, with details to be announced on Monday.
Jamieson Greer, the US Trade Representative, participated in the talks alongside Bessent and He Lifeng. Greer described the outcome as an agreement with Chinese partners that will help reduce the global trade deficit of US goods, currently amounting to $1.2 trillion.
Key Points from the Negotiations
- Face-to-face meeting: This was the first in-person interaction between Bessent, Greer, and He since both nations imposed tariffs exceeding 100% on each other’s products.
- Trade deficit reduction: The negotiations focused on decreasing the US trade deficit with China, which stands at $295 billion in goods.
- Policy changes: The US aims to persuade China to abandon its perceived mercantilist economic model and contribute more to global consumption, requiring politically delicate internal reforms.
Statements and Reactions
Kevin Hassett, the White House Economic Advisor, stated that China is “very, very eager” to restart and rebalance trade relations with the US. He also suggested that more trade agreements might be reached with other countries as soon as this week.
President Trump expressed a positive outlook on the negotiations, stating that both parties had agreed to “a complete restart…in a friendly but constructive way.” He emphasized the desire for increased Chinese openness to US businesses without providing further details.
Setting the Stage for Future Agreements
The negotiations took place in Switzerland, chosen for its neutrality and facilitated by recent diplomatic efforts between Swiss politicians and representatives from both China and the US.
Following the recent trade agreement with the UK, more commercial pacts might be announced soon. Secretary of Commerce Howard Lutnick informed Hassett about approximately twenty pending agreements under development.
Hassett noted that each agreement would be tailored to individual countries, much like the UK deal.
