China confirms upcoming tariff talks with the US in Switzerland, emphasizing they will only engage in dialogue based on equality and mutual respect, while warning that pressure tactics will prove futile.
Quick Takes
- Trade talks between US and China scheduled in Switzerland after being requested by Washington
- China insists any dialogue must be based on “equality, respect, and mutual benefit”
- Current tariffs are exceptionally high with the US at 145% and China at 125%
- Treasury Secretary Bessent emphasizes need for “deescalation before we can move forward”
- Experts warn against excessive optimism about the speed and scope of potential deals
China Sets Clear Terms for US-Requested Talks
China has confirmed that discussions about tariffs with the United States will take place in Switzerland, pointedly noting that these talks are being held at Washington’s request. The Chinese Foreign Ministry made it clear that while they are willing to come to the table, their fundamental position on tariffs remains unchanged. The high-level meetings will include US Treasury Secretary Scott Bessent, US Trade Representative, and Chinese Vice Premier, highlighting the significance both nations are placing on addressing their ongoing trade disputes. This marks the first substantial trade dialogue between the economic superpowers in recent months.
Chinese officials emphasized that any genuine progress in these discussions hinges on adherence to specific principles. “China is open to dialogue, but for any dialogue to happen, it must be based on equality, respect, and mutual benefit,” stated a spokesperson for China’s Foreign Ministry. The spokesperson further cautioned that applying pressure or using coercive tactics would be counterproductive to reaching any meaningful resolution on tariff disputes.
🇨🇳🇺🇸 Tariff talks back on track
China has agreed to engage with the U.S. on tariff issues after Washington signaled possible policy adjustments and reached out through multiple channels, a Ministry of Commerce spokesperson said Wednesday.
Chinese Vice Premier He Lifeng is set… pic.twitter.com/s6V2LelRW6
— Yawen Xu (@YawenXu17) May 7, 2025
Deescalation as the First Priority
Treasury Secretary Scott Bessent has set modest expectations for the initial round of talks, focusing on tariff reduction rather than comprehensive agreement. “My sense is that this [weekend’s talks] will be about deescalation, we’ve got to deescalate before we can move forward,” Bessent stated, highlighting the preliminary nature of these discussions. The current tariff situation presents significant economic challenges for both countries, with the US maintaining tariffs at approximately 145% and China at around 125%, creating substantial barriers to trade that both sides may be motivated to address.
Experts caution against overoptimism regarding how quickly substantive agreements might emerge from these talks. Analysts familiar with US-China trade relations suggest that while immediate focus may be on tariff reduction to prevent economic recession, larger negotiations addressing structural issues could take much longer. Both nations face domestic pressures that could complicate their ability to make significant concessions, with political constituencies in both countries having strong views on appropriate trade policy with their chief economic rival.
“Investors shouldn’t mistake China engagement with China deals,” warned Terry Haines of Pangaea Policy.
Strategic Considerations and Long-Term Outlook
Secretary Bessent has acknowledged the possibility of a partial economic decoupling between the United States and China, specifically in strategic industries. This perspective suggests that while complete separation of the world’s two largest economies remains impractical, America may pursue targeted independence in sectors deemed critical to national security. This selective decoupling approach could influence which tariffs might be prioritized for reduction in these talks and which might remain as protective barriers for strategic reasons.
Meanwhile, President Trump has expressed a willingness to proceed without reaching a deal, suggesting that America is not disadvantaged by reduced trade with China. This position adds another layer of complexity to the negotiations, as Chinese officials must consider how any agreements reached now might fare under potential future administrations. The talks represent an important moment in ongoing efforts to manage economic relations between global powers with fundamentally different economic and political systems.
