GENEVA — Negotiating teams from the United States and China concluded two days of trade discussions in Switzerland on a positive note, marking a development amid ongoing tensions between the two largest global economies.
U.S. Treasury Secretary Scott Bessent announced on Sunday evening that the discussions resulted in "substantial progress," with further details to be disclosed on Monday. Chinese Vice Premier He Lifeng described the atmosphere as collegial and professional, emphasizing the meeting as a crucial first step towards resolving differences through dialogue.
A new consultation mechanism involving senior officials from both nations will be established as a next step, according to He.
The discussions began early on Saturday at a Swiss government-owned villa overlooking Lake Geneva. On Sunday evening, Bessent described the sessions as "productive," adding that President Trump was kept informed of the developments. U.S. Trade Representative Jamieson Greer also noted the swift pace at which common ground was reached, suggesting that the differences might not have been as significant as previously perceived.
In Washington, Trump administration officials, including Kevin Hassett, Director of the National Economic Council, and Commerce Secretary Howard Lutnick, commented positively on the tone of the talks.
However, He Lifeng acknowledged ongoing friction, describing the discussions as candid, in-depth, and constructive, with substantial progress achieved. He spoke from China’s mission to the World Trade Organization in Geneva, stating that while Beijing did not instigate the trade war, it was prepared to defend its interests.
Investor sentiment, after weeks of financial market volatility, may improve following these developments, indicating a potential easing of trade disruptions between the two countries. Nonetheless, businesses require further details before making decisions, as the agreement is not yet finalized after only two days of talks.
Dmitry Grozoubinski, a former Australian trade negotiator, cautioned against overinterpretation of the situation, suggesting that the agreement may primarily outline discussion topics for future conversations.
Officials from both countries are expected to make additional announcements on Monday morning in Geneva.
