The United States and China, which have effectively severed trade relations by imposing tariffs exceeding 100%, will enter into their first official negotiations this week in Switzerland. Given that both sides remain on high alert, the likelihood of immediate concrete results, such as tariff reductions, is slim. However, there are assessments that the initiation of dialogue between the two sides is a significant development.
On the 7th, a spokesperson for China's Ministry of Commerce stated, "Vice Premier He Lifeng is scheduled to meet with U.S. Treasury Secretary Scott Vessen at the Swiss meeting as the chief representative for China in the U.S.-China economic and trade negotiations." This is the first official trade negotiation between the two countries since U.S. President Donald Trump imposed additional tariffs on Chinese imports. Regarded as a key figure in China's economic landscape, He Lifeng is expected to stay in Switzerland from the 9th for 12 days, although the exact timing of his meeting with Vessen has not yet been disclosed.
China emphasized that this meeting is in response to a request from the United States. The spokesperson noted, "Recently, U.S. senior officials have continuously spread rumors about adjustments to tariff measures and have conveyed to China that they hope to engage in dialogue on tariff issues through various channels," adding, "China has carefully evaluated the U.S. message." It was further stated, "After fully considering the expectations of the global community, China's interests, and the appeals from American industries and consumers, China decided to agree to engage in contact with the U.S."
The conflict between the two countries escalated into a matter of pride, with the U.S. imposing a 145% tariff on Chinese imports and China retaliating with a 125% counter-tariff. Led by Trump, the U.S. side has continuously emphasized that "it is China that wants to negotiate." On the 1st (local time), U.S. Secretary of State Marco Rubio stated in an interview with Fox News, "(China) is reaching out. They want to meet and talk with (the U.S.)." However, China has completely denied this, stating that "the United States must show sincerity by retracting its unilateral tariff imposition."
As the United States and China enter their first high-level meeting amid the trade war, global attention is focused, but it seems difficult for any significant achievements to emerge immediately. On this day, Vessen stated in an interview with Fox News, "We will focus more on easing tensions than on a large-scale trade negotiation." He added, "This is not sustainable, especially for China," and said that "145% and 125% are akin to embargo measures," emphasizing, "We do not want decoupling and seek fair trade."
China has made it clear that it will not easily back down in negotiations. The spokesperson stated, "For the U.S. to resolve issues through negotiations, it must recognize the serious negative impacts of unilateral tariff measures on itself and the world, and show sincerity in dialogue by acknowledging the rules of international economics and trade, fairness, justice, and the reasonable voices from all sectors," adding that "the U.S. must correct inappropriate practices and resolve concerns through equal consultations." This implies that the U.S. must show sincerity in adjusting tariffs.
He also said, "If words and actions diverge, and if threats and intimidation continue under the guise of negotiations, China will never respond," adding, "We will not seek any agreement at the expense of principled positions and international fairness and justice." He warned other countries negotiating tariffs with the U.S. that "appeasement will not bring peace and that respect cannot be achieved through compromise," affirming that "upholding fairness and justice is the right way to protect national interests." This can be interpreted as a call for the U.S. to align itself more closely with China.
Nevertheless, markets are responding positively to the fact that both the U.S. and China are seeking an exit from the trade war. U.S. CNBC evaluated that "this meeting between Vessen and He Lifeng is an important development in starting negotiations to potentially resolve the trade war triggered by Trump."