US and China to start talks over trade war this week

This week, officials from the United States and China are set to begin discussions aimed at easing the ongoing trade conflict between the two largest economies in the world. The talks are scheduled to take place in Switzerland from May 9 to May 12, with Chinese Vice Premier He Lifeng representing China. The US delegation will include Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. This meeting marks the first significant interaction between the two nations since Chinese Vice-President Han Zheng attended President Trump's inauguration in January. Since President Trump returned to the White House, he has implemented new tariffs on Chinese imports, which can reach as high as 145%. In retaliation, China has imposed its own tariffs on certain American goods, with rates as high as 125%. Experts in global trade have indicated that they anticipate the negotiations will be lengthy and complex. Mr. Bessent expressed his hope to rebalance the international economic system to better serve American interests. He stated in an interview, 'My sense is that this will be about de-escalation, not about the big trade deal, but we've got to de-escalate before we can move forward. ' A spokesperson from the Chinese commerce ministry emphasized that if the United States wishes to resolve the trade issues through negotiations, it must acknowledge the serious negative impacts of its unilateral tariff measures on both itself and the global economy. Reports from Chinese state media suggest that Beijing has decided to engage in talks with the US after carefully considering global expectations, national interests, and appeals from American businesses. However, they also reiterated that if the US chooses to continue the trade war, China is prepared to fight until the end. The ongoing trade conflict has caused significant turmoil in financial markets and has sent shockwaves throughout global trade. Two trade experts shared their thoughts with the BBC, expressing skepticism about the initial phase of the talks. Deborah Elms, the Head of Trade Policy at the Hinrich Foundation, remarked, 'You have to start somewhere, so I'm not saying it isn't worthwhile. Just unlikely to be the launch event people are hoping to see. ' Henry Gao, a law professor at Singapore Management University and a former Chinese lawyer at the World Trade Organization, predicted that the discussions could extend over several months or even longer than a year. On Wednesday, financial markets in mainland China and Hong Kong experienced gains as investors reacted positively to the news of the upcoming talks and the announcements from Chinese authorities regarding measures to support the economy. US stock futures also rose, indicating a positive outlook. Investors are also eagerly awaiting the US central bank's announcement regarding interest rates, which is expected later in the day.