U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar He Lifeng in Switzerland this weekend for talks that could be the first step toward resolving a trade war disrupting the global economy.

News of the meeting first announced by Washington late Tuesday sent U.S. equity index futures higher, while stock markets in China and Hong Kong followed suit during Asian trading on Wednesday.

The talks come after weeks of escalating tensions that have seen duties on goods imports between the world's two largest economies soar well beyond 100%, amounting to what Bessent on Tuesday described as the equivalent of a trade embargo.

The impasse, alongside U.S. President Donald Trump's decision last month to slap sweeping duties on dozens of other countries, has upended supply chains, roiled financial markets and stoked fears of a sharp downturn in global growth.

The negotiating teams convening in Geneva are expected to discuss reductions to the broader tariffs, two sources familiar with the planning told Reuters. The two sides are also expected to discuss duties on specific products, U.S. export controls and Trump's decision to end de minimis exemptions on low-value imports, one of the sources said.

China's State Council did not immediately reply to a faxed request for comment.

"My sense is this will be about de-escalation," Bessent told Fox News after the announcement. "We've got to de-escalate before we can move forward."
A Chinese commerce ministry spokesperson later confirmed that China had agreed to meet the U.S. envoys.

"On the basis of fully considering global expectations, China's interests, and the appeals of U.S. industry and consumers, China has decided to re-engage the U.S.," the Chinese statement said.

"There is an old Chinese saying: Listen to what is said, and watch what is done. ... If (the U.S.) says one thing but then does another, or attempts to use talks as a cover to continue coercion and blackmail, China will never agree."

This is the first meeting between senior Chinese and U.S. officials since U.S. Senator Steve Daines met Premier Li Qiang in Beijing in March.

Beijing has largely adopted a fiery rhetoric as tensions with Washington have ratcheted up, repeatedly saying it would not engage in negotiations unless the tariffs were withdrawn.

Source: Reuters

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