
U.S. and China Make Substantial Trade Deal Progress in Geneva Talks
The United States and China have made "substantial progress" in their ongoing trade negotiations, according to U.S. Treasury Secretary Scott Bessent. The latest round of high-level talks took place in Geneva and included Chinese Vice-Premier He Lifeng, a key economic policymaker in Beijing. While the specifics of the negotiations remain largely confidential, officials described the tone as constructive, suggesting a possible turning point in the tense economic relationship between the world’s two largest economies.
The Geneva meeting marked the most significant bilateral engagement since the imposition of tariffs and retaliatory measures that began several years ago. Discussions reportedly centered on key issues such as intellectual property protections, subsidies to state-owned enterprises, technology transfers, and improved access to each country's domestic markets. Both sides are said to have acknowledged mutual concerns and showed willingness to work toward a phased framework for reducing trade barriers.
The market response to news of the progress was swift and optimistic. U.S. equity futures climbed in pre-market trading, signaling investor confidence in improved international trade conditions. Similarly, major Chinese stock indices posted gains, buoyed by hopes of greater export stability and renewed foreign investment. Meanwhile, safe-haven assets like gold dipped in price, reflecting reduced geopolitical risk, and the U.S. dollar edged higher against a basket of currencies, boosted by both improved risk sentiment and a potential lift to U.S. economic growth.
Analysts view the positive tone as a welcome shift following years of trade friction that have weighed on global supply chains and investor sentiment. However, they caution that significant hurdles remain. Any lasting agreement will likely require continued negotiation and verification mechanisms, particularly around enforcement of trade commitments and transparency measures.
Looking ahead, both countries have agreed to hold further discussions in the coming months, with a potential summit between senior leaders being floated for later this year. A formal joint statement is expected to be released shortly, which could offer further insight into the key concessions made and the roadmap for future engagement.
Author: Global Ripple
Posted on: May 12, 2025