The first China-U.S. economic and trade consultation mechanism meeting concluded in London on Tuesday, drawing global attention as officials from the world's two largest economies sought to stabilize relations. Chinese Vice Premier He Lifeng led the mainland delegation, while U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick represented Washington.
The talks followed a pivotal phone conversation between Chinese President Xi Jinping and U.S. President Donald Trump, with both sides reaffirming commitments to implement prior agreements. Markets responded positively: U.S. stock indices surged, freight rates spiked on renewed shipping demand, and investor confidence rose amid hopes of reduced trade friction.
This dialogue builds on May's Geneva negotiations, where both nations paused tariff escalations. Previous U.S. tariffs on $370 billion in Chinese goods and Beijing's countermeasures had strained global supply chains, with IMF data suggesting a 40% chance of U.S. recession. A Bank of America survey revealed the lowest U.S. asset allocations in 17 years.
President Xi emphasized that “cooperation remains the only viable path,” urging both sides to address differences through equal dialogue. Wu Zewei, a researcher at Sushang Bank, noted: “The Geneva framework and leaders’ guidance create momentum for pragmatic solutions. Mutual benefits remain achievable.”
While challenges persist, analysts highlight the talks’ symbolic importance in restoring predictable economic engagement. Observers now await concrete measures to ease trade barriers and stabilize global markets.
