US, China Officials to Meet in Switzerland—What to Know

‘We’ve got to de-escalate, before we can move forward,’ said Treasury Secretary Scott Bessent.

Treasury Secretary Scott Bessent testifies before the House Appropriations Committee in the Rayburn House Office Building in Washington on May 6, 2025. Kayla Bartkowski/Getty Images

Top negotiators from the United States and China are scheduled to meet on May 10 in Geneva, Switzerland, as the world’s two largest economies attempt to de-escalate the tariff situation.

Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with He Lifeng, China’s vice premier and lead economic representative, and Swiss President Karin Keller-Sutter.

The U.S. tariff rate on Chinese goods entering the country is 145 percent. Beijing has retaliated by imposing a 125 percent levy on American-made imports.

“Economic security is national security, and President Donald Trump is leading the way both at home and abroad for a stronger, more prosperous America,” said Bessent in a statement.

“I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the United States.”

Here is what to know ahead of the crucial meeting.

The Purpose

Although a comprehensive trade agreement is unlikely to emerge from the meeting, it could help break the ice and prevent further escalation of tensions between the two countries.

In an interview with Fox News host Laura Ingraham, Bessent acknowledged that this weekend’s meeting is more de-escalation rather than a “big trade deal,” likening the situation to an embargo.

“But we’ve got to de-escalate before we can move forward.”

Greer, speaking on CNBC’s “Power Lunch” shortly after the U.S.-United Kingdom trade deal announcement on May 8, noted that the talks need to result in “stability” and “a foundation for something more.”

The U.S. trade chief said in a May 6 statement that he is seeking to advance U.S. interests on various multilateral issues.

“At President Trump’s direction, I am negotiating with countries to rebalance our trade relations to achieve reciprocity, open new markets, and protect America’s economic and national security,” Greer stated.

Reiterating the position of his predecessor, Janet Yellen, Bessent explained that the United States does not aim to decouple from China.

“What we want is fair trade,” he told the network.

Economists say that the American people should not expect a deal anytime soon.

According to Apollo chief economist Torsten Slok, the United States’ average negotiation time for a trade deal is about 18 months.

“Why does it take so long? Because trade negotiations involve going through what is imported into each country line by line and then negotiating the tariff for each product category,” Slok said in a note emailed to The Epoch Times.

Negotiators will then talk about a diverse array of issues, such as non-tariff barriers, anti-dumping practices, intellectual property rights, labor and environmental standards, and dispute resolution.

“The bottom line is that trade negotiations take time because they are complex,” Slok added.

President Donald Trump (C) makes a trade announcement as senior U.S. officials and the British Ambassador to the United States, Peter Mandelson (3rd R), look on in the Oval Office on May 8, 2025. Jim Watson/AFP via Getty Images

Bessent acknowledged as much last month, saying that a complete trade deal with China could take two to three years.

Who Started What

So, who initiated the meeting anyway?

Beijing’s Foreign Ministry spokesman Lin Jian said on the social media platform X that the upcoming meeting in Switzerland “was requested by the US side.”

“Recently, the US has said repeatedly it wants to negotiate with China,” wrote Lin.

Trump disagreed with the Chinese regime’s description of events.

“They said we initiated? Well, I think they ought to go back and study their files, OK?” the president told reporters at a White House event on May 7.

Earlier this week, appearing alongside Canadian Prime Minister Mark Carney, Trump told reporters that China wants to meet and negotiate and that the United States would do so at “the right time.”

For weeks, the president has stated that it is up to the Chinese regime to ensure discussions are underway.

“The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” White House press secretary Karoline Leavitt quoted Trump in a statement at a press briefing last month.

80 Percent Tariff ‘Seems Right’

Ahead of the pivotal U.S.-China meeting, the president took to social media and stated that he might be willing to lower tariffs on China to 80 percent.

An “80 percent Tariff on China seems right! Up to Scott B,” Trump said in a May 9 Truth Social post.

“Many Trade Deals in the hopper, all good (great!) ones!” he added in a separate post.

It is unclear whether the president is pursuing a permanent 80 percent levy on Chinese goods or if he believes reducing the tariff rate would advance negotiations.

Trump earlier posted on Truth Social that China “should open up its market to USA” as it would benefit the world’s second-largest economy.

“Closed markets don’t work anymore!” the president said.

Two days before trade talks, the Chinese regime asked the United States to cancel tariffs.

Trade Activity on Ice

Trump’s tariffs are beginning to take a toll on China’s economy. Factory activity has eased, foreign direct investment has tanked, and domestic consumption has slowed.

New data from China’s General Administration of Customs show that total exports to the United States plummeted 21 percent in April from a year ago, and China’s imports from the United States declined 13 percent.

In the first four months of 2025, Chinese shipments to the world’s largest economy tumbled 2.5 percent year-over-year, and imports of American-made goods fell nearly 5 percent.

Shipping containers at the Port of Los Angeles on March 28, 2025. John Fredricks/The Epoch Times

The latest trade numbers are unsurprising as industry data suggests cratering activity.

For the week ending April 28, Chinese shipments to the United States tanked about 43 percent from the previous week and plunged 27 percent year over year.

Prior to the president’s global tariff announcement on April 2, companies rushed to front-run the tariffs and accelerate their purchases from abroad.

“The signal is clear. Shippers rushed to move product in Q1, then pulled back sharply as new tariff policies introduced widespread uncertainty,” Vizion said in a recent report.

“These dramatic shifts, visible in booking data well before they appear at ports or in customs reports, highlight the importance of early indicators in a rapidly changing trade environment.”

Supply chain logistics platform Flexport reported on April 30 that the number of canceled scheduled sailings has increased significantly.

Due to diminished demand expectations, ocean carriers are reducing their capacity in the Transpacific Eastbound trade route “at faster rates than COVID.”

“Carriers are reducing capacity by deploying smaller vessels, blanking (cancellation) scheduled sailings, and even the suspension of entire service loops,” the report said.

“For context, a service loop is like a bus route. It’s a set schedule that ships follow every week, stopping at the same ports in the same order.”

The latest Global Port Tracker report, released on May 9 by the National Retail Federation and Hackett Associates, noted that import cargo levels will see their first year-over-year decrease since 2023.

Looking ahead, the report projected that imports are expected to be down 20 percent year over year from June into the fall.

“Container carriers are indeed dropping voyages and consolidating cargo and service to ensure that their vessels are as full as possible and to maintain economies of scale as demand declines,” said Hackett Associates Founder Ben Hackett.

Talking to reporters at the Oval Office on May 8, Trump stated that declining cargo volume is a positive development because “that means we lose less money.”

“When you say it slowed down, that’s a good thing, not a bad thing,” the president said.

Markets at a Standstill

In the final trading session before the U.S.-China trade talks begin, U.S. stocks were little changed.

The leading benchmark averages were slightly down, while U.S. Treasury yields were flat.

The U.S. Dollar Index (DXY), a measure of the greenback against a weighted basket of currencies, kept its weekly gain intact.

“Trump is starting to talk a big game after negotiating one deal with our closest ally. Now the focus is on China. Britain just hammered out a deal with them that took three years,” said Jay Woods, the chief global strategist at Freedom Capital Markets, in a note to The Epoch Times.

“The market may be getting ahead of itself as we await any news as major headwinds approach.”

If there is positive negotiating momentum and the White House can secure a good deal with the Chinese regime, it could be a catalyst for the financial markets, says Ken Mahoney, the CEO of Mahoney Asset Management.

“If we get a better deal with China and a more clear/stable picture, the market rally can really continue to expand and surprise everyone, including ourselves,” Mahoney said in a note emailed to The Epoch Times.