May 10th to 11th, high-level closed-door talks between China and the United States were held in Geneva, Switzerland, to resolve tariff disputes. German TV Channel One reported that after the meeting on the 11th, U.S. Trade Representative Jamieson Greer unexpectedly announced that an agreement had been reached between the two sides to reduce the U.S. trade deficit. China mentioned that important consensus had been achieved between China and the United States, and the talks had made substantial progress.

U.S. representative interviewed

U.S. Side: Agreement Reached

On the 11th, Greer mentioned "the agreement we have reached with our Chinese partners" during a press conference in Geneva alongside Scott Bessent, the U.S. Treasury Secretary who led the delegation for this round of talks. The details will be released on Monday. Greer also explained that the differences between the two sides "are not as large as people imagine."

Bessent stated that the agreement would help reduce the U.S. international goods trade deficit, which currently stands at $1.2 trillion. The two-day negotiations had made "significant progress." U.S. President Donald Trump had been informed about the progress of the talks.

Report from German TV Channel One

Late on, the White House also issued a statement titled "U.S. Announces China Trade Deal in Geneva." The statement said that the U.S. had reached an agreement with China on tariff disputes in Geneva, potentially achieving a breakthrough in the stalled trade conflict. However, specific details were not disclosed.

U.S. President Trump had drawn a positive interim conclusion after the first day of negotiations: he posted on the social media platform Truth Social that the discussions in Geneva were "very good." He also mentioned the "full restart" of bilateral trade relations. "We hope to see American businesses open up to China, which is in the common interest of both countries. Great progress has been made!"

U.S. Commerce Secretary Howard Lutnick also expressed overall confidence in the outcome of the talks. Lutnick told CNN that he was "optimistic about things going well."

Trump's post

Chinese Side: Substantial Progress

He Lifeng, the Chinese leader in charge of the economic and trade talks and Vice Premier of the State Council, stated at a news conference held by the Chinese delegation on the evening of the 11th that the high-level talks between China and the United States were candid, in-depth, and constructive, reaching important consensus and making substantial progress.

The two sides agreed to establish a Sino-U.S. economic and trade consultation mechanism. Both sides will soon finalize relevant details and release a joint statement of the talks reached on May 12th.

Xinhua News Agency releases information on the Chinese press conference

Compared with the U.S. delegation, the Chinese delegation appeared more composed and steady. This stems from the resilience of China's economy. Gary Hufbauer, an expert at the Peterson Institute for International Economics, believed that the progress of this negotiation was "good news for the economy and financial markets." Hufbauer noted that some moderate U.S. government officials like Bessent and Commerce Secretary Howard Lutnick "recognize that China is better equipped than the U.S. to handle this trade war."

China’s customs authorities announced on Friday that in April, total imports and exports increased by 8.1%. Experts said that this growth indicates that China has redirected a significant amount of its exports to Southeast Asia to avoid U.S. high tariffs.

Deutsche Presse-Agentur (DPA) reported that Beijing is actively seeking other trading partners. China's "super-large market" provides more opportunities for products from Latin America and the Caribbean region. Next week, at the CELAC Government Representatives Forum in Beijing, decisions will be made regarding cooperation in raw materials, food, and infrastructure.

Chinese delegation

WTO Director-General: "Happy"

This round of talks received high global attention because the outcome was considered crucial for the future development of global trade. Trump's announced tariff measures caused severe fluctuations and declines in global financial markets. As early as Friday, Trump had indicated his willingness to ease restrictive measures.

After the talks between China and the U.S., Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), expressed happiness over the "positive outcomes" of the trade negotiations. The director-general stated: "I urge both parties to continue seeking practical solutions based on this foundation to alleviate tensions, restore predictability, and enhance confidence in the multilateral trading system."

WTO headquarters are located in Geneva

Trump previously claimed that the U.S. trade deficit with China reached one trillion dollars or more. However, according to official U.S. government data, last year's U.S. goods trade deficit with China was $295.4 billion, significantly lower than this level. If services are included, the trade deficit is even lower, approximately $263 billion.

Last week, the U.S. signed the first of dozens of planned bilateral trade agreements with the UK. However, due to the massive volume of trade and its significance to the global economy, reaching an agreement with China was considered the most important. The negotiating team met at the residence of the U.S. Ambassador to the United Nations in Switzerland, located in the Coloni suburb, with its own park overlooking Lake Geneva. On the 12th, all eyes around the world will focus on Geneva, expecting specific content of the consensus reached by China and the U.S.

Original source: https://www.toutiao.com/article/7503321410052440588/

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