USA and China announce progress in trade talks

USA and China announce progress in trade talks

The United States and China will announce detailed information on Monday about the progress of the marathon talks at the weekend in Geneva, Switzerland. These discussions were held by representatives of the two largest economies in the world. Washington emphasized the progress in the direction of a "deal" on Sunday, while Beijing addressed the mutual agreement to start a formal economic and commercial negotiation process. At a press conference, the Chinese delegation announced that the two sides want to complete the details of the "consulting mechanism" as soon as possible and to publish a joint statement on Monday.

Positive signal for global investors

global investors are optimistic about relaxation in the trade war, which was triggered by the massive tariffs of US President Donald Trump. The global markets broke up these tariffs, brewed supply chains and fueled fears from a recession. The futures of the Dow Jones rose by about 1 %, while the futures of the S&P 500 rose by 1.3 % and that of the technology -oriented Nasdaq Composite by 1.7 %. There were also positive tendencies in the Asian markets during trade on Monday.

Details about the conversations

US finance minister Scott Bessent and US trade officer Jamieson Greer did not reveal any precise information about the negotiations. "I am pleased to be able to report that we made considerable progress during the very important trade discussion between the United States and China," said Bessent. He commented in the residence of the Swiss representative at the United Nations in Geneva, which served as a conference venue.

Greer confirmed that the two sides had achieved a kind of agreement, but did not express any specific details. He pointed out a trade deficit of $ 1.2 trillion, which in his opinion was to be regarded as a "national emergency" that made the tariff necessary. "It is important to understand how quickly we came to an agreement, which shows that the differences may not be as big as you thought," said the trade officer.

optimistic tones from Beijing

The Chinese Vice Prime Minister He Lifeng, which cited his delegation, expressed a positive comment at the press conference on Sunday, but did not mention a deal. However, his tone was a clear change in previous official statements about the trade conflict with the United States. He described the conversations as "open, well -founded and constructive, with important consensus and considerable progress" and asked both sides to "take a practical attitude towards problem solving".

a trading pact with China

A trade agreement with China would be a positive sign of the global economy and would bring clarity for consumers and American companies that have prepared for a possible recession due to increasing prices.

progress in the trade war

It remains unclear whether the two -day talks in Geneva led to a binding agreement on the reduction of the tariffs on both sides. On Sunday, the White House published an explanation that was a "trade deal" after completing the conversations, but contained no further details, apart from the statements of Bessent and Greer. The sales representative Li Chengang gave additional information about the process of trade negotiations. He explained that Vice Prime Minister He Beijing is represented in commercial and economic issues in the United States and that he will "lead the mechanism together with the US negotiators".

"The work teams on both sides will regularly and irregularly communicate to commercial and economic topics. The time and the venue for future communications are determined on both sides," he added.

The trade crisis has already affected both economies. On Friday, US port officers reported that in the last 12 hours of a single cargo ship China with goods with goods to the two large west coast ports. This has not occurred since the Covid 19 pandemic.

If there is a change in the US customs set compared to China, it is unlikely that it will be reduced below the current base rate of 10 %, which also applies to other countries. Even the most recent trade agreement of the United Kingdom with the United States did not change significantly from the "Freedom Day" announcement on April 2.