Trade talks between the US and China have hit a roadblock, with US Treasury secretary Scott Bessent stating that they are “a bit stalled” and may need a push from a call between President Donald Trump and Chinese leader Xi Jinping. This revelation comes after the two countries agreed to a truce during talks in Geneva two weeks ago, aimed at reducing the escalating tariffs between them.
Bessent mentioned in an interview with Fox News that more talks are on the horizon, and a potential phone call between Trump and Xi could be a catalyst for progress. He emphasized the importance of both leaders engaging in the discussions, given the significance of the trade negotiations. Despite Trump’s previous claims of speaking with Xi before the talks on May 12, China has consistently denied such interactions.
Following the Geneva talks, the US and China agreed to lower tariffs on each other’s goods for a period of 90 days. The additional tariffs imposed by the US on Chinese imports were set to decrease to 30%, while China’s tariffs would drop to 10%. Additionally, China committed to addressing non-tariff measures against the US, although specifics were not provided.
The Chinese ministry of commerce announced the establishment of a “China-US economic and trade consultation mechanism” post-talks, aimed at maintaining open communication on economic and trade issues. Regular consultations were planned to be held alternately in China, the US, or a mutually agreed third country.
Despite these agreements, there has been limited progress reported on the trade talks since the Geneva meeting. The Trump administration has continued to impose restrictions on the use of US technology by Chinese companies, including warnings against using Huawei’s artificial intelligence chips and restrictions on software services for semiconductor design.
In light of these developments, Huo Jianguo, a vice-chair of the China Society for World Trade Organization Studies, emphasized the need for China to be prepared for both negotiations and a prolonged confrontation with the US. The evolving dynamics of the US-China trade relationship underscore the complexity and challenges ahead for both nations.
This article highlights the current status of trade talks between the US and China, signaling the need for further engagement and resolution to ongoing trade disputes. The insights provided by key officials shed light on the importance of leadership involvement in facilitating progress in the negotiations.
