US Treasury Secretary Scott Bessent leads the delegation to negotiate with China. Photo: Swiss Info
On May 11, writing on the social media site Truth Social, US President Donald Trump said: “Many issues were discussed, many things were agreed upon. The reset was completely negotiated in good faith, constructively. For the benefit of both China and the United States, what we wanted to see, a Chinese opening to American business, has made great progress.”
China's state news agency Xinhua called the talks in Switzerland "an important step toward resolving the issue. However, a final solution requires patience and strong strategic determination, as well as the legitimate support of the international community."
"Whether the path forward involves negotiations or confrontation, one thing is clear: China's determination to safeguard its development interests is unshakable, and its stance on maintaining the global economic and trade order will not change," Xinhua stressed.
Negotiations between the two sides will continue on May 11 local time, according to multiple sources. However, many opinions say that the two sides have little prospect of achieving a major breakthrough. The two countries are likely to reduce the huge tariffs they are imposing on each other's goods. This is a move that will help reduce the negative impact on world financial markets and companies on both sides of the Pacific that depend on US-China trade.
The US has imposed tariffs of at least 145% on most Chinese imports. Beijing has responded with tariffs of 125% on most US imports.
The trade war has taken a toll on the US economy, with gross domestic product (GDP) contracting for the first time since early 2022 as importers raced to get goods in before punitive tariffs took effect.
The impact of the steep tariffs is also being felt in China, where exports to the US fell sharply in April. Chinese exports to the US were just $33 billion last month, down 21% from the $41.8 billion recorded in April 2024.
Tariffs have also taken a heavy toll on China’s manufacturing sector, with factory activity shrinking at its fastest pace in 16 months in April, prompting Beijing to rush out new stimulus measures.
According to economic experts, a 50% tax rate is the minimum threshold to restore normal business operations between the two countries.
According to the National Retail Federation, imports into the United States are expected to fall by at least 20% year-over-year in the second half of 2025. The decline in China is even more severe. Investment bank JPMorgan expects imports from the United States to fall by 75% to 80%.
According to Sky News, Xinhua News Agency
Source: https://hanoimoi.vn/dam-phan-thuong-mai-my-trung-quoc-dat-tien-trien-lon-701885.html
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