Top United States and Chinese officials have wrapped up the first day of talks in Switzerland aimed at defusing trade tensions and plan to resume negotiations on Sunday, a source close to the discussions says.
Chinese Vice Premier He Lifeng met for about eight hours with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer in Geneva in their first face-to-face meeting since the world’s two largest economies heaped tariffs well above 100 per cent on each other’s goods.
Neither side made any statements about the substance of the discussions nor signalled any progress towards reducing crushing tariffs as meetings at the residence of Switzerland’s ambassador to the United Nations concluded about 8pm local time.
Bessent, Greer and He were meeting in Geneva after weeks of growing tensions prompted by US President Donald Trump’s tariff blitz starting in February and retaliation from China that has brought nearly $US600 billion ($A935 billion) in annual bilateral trade to a virtual standstill.
The trade dispute, combined with Trump’s decision last month to impose duties on dozens of other countries, has disrupted supply chains, unsettled financial markets and stoked fears of a sharp global downturn.
The location of the talks in the Swiss diplomatic hub was never made public.
However, witnesses saw both delegations returning after a lunch break to the gated UN ambassador’s building, the 18th-century “Villa Saladin,” which has its own private park overlooking Lake Geneva in the leafy suburb of Cologny.
Earlier, US officials including Bessent and Greer smiled as they left their hotel on the way to the talks, wearing red ties and US flags on their lapels.
At the same time, Mercedes vans with tinted windows were seen leaving a hotel where the Chinese delegation was staying on the lakeside as runners preparing for a weekend marathon warmed up in the sunshine.
The US is seeking to reduce its $US295 billion goods trade deficit with China and to persuade Chinese officials to renounce what the United States says is a mercantilist economic model and contribute more to global consumption, a shift that would require politically sensitive domestic reforms.
Chinese authorities have pushed back against what they see as external interference.
They want the United States to lower tariffs, clarify what it wants China to buy more of and treat it as an equal on the world stage.
China’s official Xinhua News Agency said in a commentary on Saturday that the United States’ “reckless abuse of tariffs” had destabilised the global economic order but added that the negotiations represented “a positive and necessary step to resolve disagreements and avert further escalation”.
“Whether the road ahead involves negotiation 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 remains unwavering,” Xinhua said.
With distrust running high, both sides have been keen not to appear weak and economic analysts have low expectations of a breakthrough.
Trump said on Friday that an 80 per cent tariff on Chinese goods “seems right,” suggesting for the first time a specific alternative to the 145 per cent levies he has imposed on Chinese imports.
He has suggested the discussions were initiated by China.
Officials in Beijing said the United States requested the discussions and that China’s policy of opposing US tariffs had not changed.
China could be looking for the same 90-day waiver on tariffs that the US has given other countries as negotiations take place while any kind of tariff reduction and follow-up talks would be seen as positive by investors.
Swiss Economy Minister Guy Parmelin met both parties in Geneva on Friday and said the fact that the talks were taking place was already a success.
“If a road map can emerge and they decide to continue discussions, that will lower the tensions,” he told reporters on Friday, saying talks could continue into Sunday or even Monday.
Switzerland helped to broker the meeting during recent visits by Swiss politicians to China and the United States.
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