Analysts have low expectations for a breakthrough, but host Switzerland hopes a “roadmap” will emerge.
China’s trade envoy He met Swiss Treasury Secretary Scott Bescent for consultations aimed at alleviating the trade war between the superpowers shaking global markets.
According to Chinese state news agency Xinhua, the first official engagement began on Saturday in an undisclosed location in Geneva, Switzerland, as the US slapped 145% tariffs on Chinese goods and urged a 125% retaliation obligation from China.
According to the Associated Press, the black car and van van were seen leaving their UN home on the outskirts of Kolognee.
A diplomatic source who spoke to the Associated Press on condition of anonymity due to the sensitivity of the meeting said they met for about two hours before departing for a previously arranged luncheon.
The trade dispute, which effectively amounts to a mutual boycott of products, was spurred last month when US President Donald Trump announced his sweep obligations in almost every country in the world.
Experts believe China may be looking for the same 90-day exemption and a 145% tariff reduction. Trump suggested in his Truth Social Post on Friday that the amount could be reduced to 80%, saying it was “right.”
Trump spokesman Caroline Leavitt said on Friday that the US will not unilaterally lower tariffs, adding that China should make similar concessions.
Bescent said the Swiss conference will focus on “de-escalation.”
“The best scenario is for both countries to agree to remove tariffs at the same time,” said Sun Yun, director of the China Program at Washington, D.C.-based Stimson Center.
“It’s not just words,” she said.
There’s a growing sense of distrust
Trump justified punitive tariffs by citing unfair trade practices and accusing Beijing of failing to curb the export of chemicals used to produce fentanyl, a deadly synthetic opioid.
China has said that they will not succumb to “imperialists” and bullies, respectively.
With high distrust, both sides are eager to not look weak, and economic analysts have low expectations for a breakthrough.
Trump suggests that the debate was launched by China. Beijing said the US demands debate and China’s policy against US tariffs has not changed.
Swiss Economic Minister Guy Palmerin met with both parties in Geneva on Friday and said the fact that consultations are taking place is already successful.
“If a roadmap emerges and you decide to continue debate, it will reduce tension,” he told reporters Friday, saying the talk could continue until Sunday or Monday.