The top US and China economic officials will meet in Geneva on Sunday for a second day discussion of the debate aimed at easing tensions caused by President Trump's trade war.
The talks have had a major impact on the global economy, which has been shaken by the tariffs that the US and China have imposed on each other in recent months. Trump imposes a minimum tariff of 145% on all Chinese imports, but China is struggling with American products with a 125% import tax.
Such punitive taxation has already disrupted global supply chains. American companies are in a hurry to source products from countries other than China, but Chinese factories are looking for ways around US tariffs, exporting more to Southeast Asia. At the same time, many US companies are weighing the amounts that can raise prices to offset fee costs.
Economists warn that trade conflicts could slow global growth and fuel inflation and drive the United States into a recession. These economic fears have put pressure on Trump to seek a deal with China.
After about seven hours of talks on Saturday, the US said it would not release a formal statement regarding the lawsuit.
Trump welcomed the initial conversation as a success.
“A very good meeting with China in Switzerland today,” Trump wrote about the true society. “A lot was discussed and we were very agreed. The total reset was negotiated in a friendly yet constructive way.”
US trade representatives Scott Bescent and Jamieson Greer lead the Washington consultations. For Beijing, negotiations are led by his Lifeng, China's Deputy Prime Minister of Economic Policy.
Tariffs effectively block trade between the two largest economies in the world.
Prior to the meeting, Trump proposed that he would be open to reducing tariffs from 145% to 80%. But White House spokesman Karoline Leavitt said China must make concessions to reduce tariffs.
The Trump administration has accused China of unfairly subsidizing key sectors of its economy and flooding the world with cheap goods. The US has also pressured China to take more aggressive steps to curb the exports of pioneer fentanyl, a drug that killed tens of thousands of Americans.
China has been steady saying it has no intention of making trade concessions in response to Trump's tariffs. Officials alleged that the country agreed to engage in consultations at the US request.
Trade talks this weekend were aimed at setting the stage for wider economic negotiations between the two countries. Economists are skeptical that quick transactions are likely.
Nancy Vanden Gauteng, US economist at Oxford Economics, said in a research note on Saturday:
Vanden Houten explained that even if the US cut the tariff rate on Chinese imports to 80%, the overall effective tariff rate for imports would be three times more predicted since Trump was elected.
But Trump appears poised to promote the concessions China has made as a US victory.
Trump repeated his appeal for China to open the market to American companies on Saturday, declaring “Great Progress!!!”
Amy Chang Chien contributed to the report from Taipei, Taiwan.
