The U.S. and China say they have made progress in trade talks

U.S.-China trade talks ended with a positive note despite the tension between world’s largest economies, according to Bessent and Greer

The trade negotiations between the U.S. and China ended on a positive note despite the current tension between the world’s two largest economies.

Scott Bessent said that there was substantial progress made by the two sides, but additional details would be announced on Monday.

But He, as the senior Chinese official leading his delegation, acknowledged that sources of friction remained, while describing the conversations as collegial and professional throughout the course of the weekend.

The discussions began in a villa owned by the Swiss government which has a panoramic view of Lake Geneva. Bessent said that the conversations had been productive, and that President Trump had been kept up to date with developments.

U.S. Trade Presentative Jamieson Greer, who joined Bessent as part of the U.S. delegation, meanwhile highlighted the speed at which both sides had found common ground.

“It’s important to understand how quickly we were able to come to agreement,” said Greer. It was something, he said, “which reflects that perhaps the differences were not so large as far as maybe thought.”

The Trump administration’s top officials, including the director of the National Economic Council and Commerce Secretary, spoke to tv on Sunday morning about the positive tone of the talks.

He spoke at his country’s mission to the World Trade Organization. He said that China would fight the trade war if it came to that, and senior Chinese officials have repeated that stance in recent weeks.

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After weeks of frazzled financial markets, investors are likely to react positively to this development as a sign that the significant disruption to trade between the two countries could soon resume, with improved economic consequences.

Former Australian trade negotiator Dmitry Grozoubinski cautions against reading too much tea leaves. “It’s probably more likely that they agreed on what their conversation should cover — on what are the kind of things they are both prepared to discuss.

“Are we going to rebalance the fundamental nature of the global economy in which China is a massive manufacturing hub and the US is a consumption economy? No, I don’t think so,” said Dmitry Grozoubinski, executive director of Geneva Trade Platform and a former Australian diplomat and trade negotiator. Is there any way the two sides can work out their differences in a way that makes both of them happy? There must be.

The U.S. says it is now negotiating for China to purchase more American goods, a throwback to a trade deal the Trump administration negotiated with China during another trade war in 2020. However, China ended up purchasing none of the additional $200 billion in goods that the U.S. said they would.

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“While the Chamber is encouraged by the decision, uncertainty remains,” said Jens Eskelund, president of the European Union Chamber of Commerce in China. Businesses need to have predictability in their investment decisions.

The new American tariff levels reflect a base 10% tariff that remains on all imports in addition to a total 20% tariff president Trump imposed earlier this year to punish Beijing for what the U.S. says is fentanyl-related chemicals being made in China.

“Neither side wants a decoupling,” said Bessent “We do want trade, we want more balanced trade, and I think both sides are committed to achieving that.”

The Chinese came to deal this week and have agreed to establish a consultation mechanism to address trade issues going forward, according to Greer.

American levies on Chinese goods will drop from at least 145% to a base levy of 30% for an initial period of 90 days, while Chinese levies are set to fall from at least 125% to 10% on American goods.

The talks were chaired by the Chinese Vice President He Lifeng and the U.S. Treasury Secretary Scott Bessent.

“We concluded that we have shared interest and we both have an interest in balanced trade,” Bessent said at a press conference on Monday. The two countries are working together to address the issue of fentanyl smuggler.

“China has always pursuing win-win outcomes in its trade and economic negotiations, and therefore any possible deal to be reached will definitely by in the development interest of China’s own,” said Li Chenggang, a diplomat with China’s commerce ministry.

At a press conference, the vice premier said the atmosphere of the meeting was constructive, that it achieved substantial progress, and that it reached important consensus.