High-level economic talks between China and the United States are set to begin in Switzerland this week, offering a glimmer of optimism after years of tariff disputes that destabilized global markets. The meeting – led by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent – reflects what Beijing describes as a "careful assessment of U.S. messages" and a response to global calls for stability.
"China has decided to engage with the U.S. side, taking into account global expectations, national interests, and calls from the American industry and consumers," a Chinese commerce ministry spokesperson said Wednesday.
The talks come as the International Monetary Fund (IMF) slashed its 2025 global growth forecast to 2.8%, down from 3.3%, citing trade uncertainties exacerbated by U.S. tariff measures. The IMF also downgraded U.S. growth projections sharply, underscoring the ripple effects of protectionist policies.
While analysts view the dialogue as a positive first step, many caution that concrete actions – not just rhetoric – will determine whether the world's two largest economies can mend fractured trade relations. Previous disputes disrupted supply chains, fueled inflation, and stalled post-pandemic recovery efforts.
UN researchers have warned of rising recession risks linked to geopolitical friction, while businesses in both countries urge leaders to prioritize predictability. "This dialogue is about more than tariffs," said one Asia-Pacific trade analyst. "It's a test of whether pragmatic cooperation can outweigh short-term political pressures."
