Treasury Sec. Bessent Meets With Chinese In Banking Capitol Of The World
On May 10, 2025, U.S. Treasury Secretary Scott Bessent met with a Chinese delegation led by Vice Premier He Lifeng in Geneva, Switzerland, marking the first high-level trade talks between the two nations since President Donald Trump imposed a 145% tariff on Chinese goods, prompting Beijing’s retaliatory 125% tariffs. The meeting, held in the Swiss diplomatic hub, aimed to de-escalate a trade war that has disrupted global supply chains, unsettled financial markets, and raised fears of a sharp economic downturn. Bessent, accompanied by U.S. Trade Representative Jamieson Greer, sought to address the unsustainable tariff levels—described by Bessent as akin to a trade embargo—while emphasizing Washington’s desire for fair trade rather than a complete decoupling from China, the world’s second-largest economy.
The talks, which began Saturday morning and were expected to extend into Sunday, took place amid a tense backdrop of mutual distrust, with China firmly opposing U.S. coercion and insisting on dialogue based on equality and mutual benefit. The Chinese delegation, backed by Beijing’s rhetoric of safeguarding national interests, pushed for tariff reductions and clarity on U.S. demands, while Bessent aimed to reduce the U.S. trade deficit and challenge China’s mercantilist economic model. Despite Trump’s earlier signal on Truth Social of potentially lowering tariffs to 80%, expectations for a breakthrough remained low. Analysts like Sun Yun from the Stimson Center noted that even a small tariff reduction could signal progress, though China’s state media, Xinhua, stressed Beijing’s unwavering stance on defending global trade fairness, reflecting the deep ideological divide between the two powers.
Switzerland, known for its neutrality, facilitated the meeting, with Swiss President Karin Keller-Sutter hosting preliminary discussions with Bessent to address the 10% U.S. tariffs on Swiss goods, which could rise to 31%. The Geneva talks, held at an undisclosed location but spotted near the Swiss Ambassador to the U.N.’s residence, were seen as a tentative first step rather than a venue for a comprehensive deal. Bessent’s approach focused on de-escalation, setting the stage for future negotiations, while China’s Ministry of Commerce emphasized global expectations and domestic interests in agreeing to the talks. Though the meeting offered a glimmer of hope for stabilizing U.S.-China economic relations, the entrenched positions of both sides suggested that resolving the tariff dispute would be a protracted process, with significant implications for global markets and geopolitical stability.
