Trump hails China talks, says two sides negotiated ‘total reset’ in Geneva

Nevin Al Sukari - Sana'a - Washington is seeking to reduce its US$295 billion goods trade deficit with Beijing and persuade China to renounce what the United States says is a mercantilist economic model and contribute more to global consumption, a shift that would require politically sensitive domestic reforms. — Reuters pic

GENEVA, May 11 — US President Donald Trump hailed talks with China in Switzerland yesterday, saying the two sides had negotiated “a total reset ... in a friendly, but constructive, manner.”

“A very good meeting today with China, in Switzerland. Many things discussed, much agreed to,” Trump posted on his Truth Social platform.

Trump added: “We want to see, for the good of both China and the US, an opening up of China to American business. GREAT PROGRESS MADE!!!” He did not elaborate on the progress.

Earlier, top US and Chinese officials wrapped up the first day of talks in Geneva aimed at defusing a trade war that threatens to hammer the global economy and planned to resume negotiations today, a source close to the discussions said.

Chinese Vice Premier He Lifeng met for about eight hours with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer in their first face-to-face meeting since the world’s two largest economies heaped tariffs well above 100 per cent on each other’s goods.

Neither side made any statements afterwards about the substance of the discussions nor signaled any specific progress towards reducing crushing tariffs as meetings at the residence of Switzerland’s ambassador to the UN concluded at about 8pm local time (2am Malaysian time).

Bessent, Greer and He were meeting in Geneva after weeks of growing tensions prompted by Trump’s tariff blitz starting in February and retaliation from Beijing that has brought nearly US$600 billion (RM2.6 trillion) in annual bilateral trade to a virtual standstill.

The trade dispute, combined with Trump’s decision last month to impose duties on dozens of other countries, has disrupted supply chains, unsettled financial markets and stoked fears of a sharp global downturn.

Undisclosed location

The location of the talks in the Swiss diplomatic hub was never made public. However, witnesses saw both delegations returning after a lunch break to the gated U.N. ambassador’s villa, which has its own private park overlooking Lake Geneva in the leafy suburb of Cologny.

Earlier, US officials including Bessent and Greer smiled as they left their hotel on the way to the talks, wearing red ties and American flags on their lapels. Bessent declined to speak to reporters.

At the same time, Mercedes vans with tinted windows were seen leaving a hotel where the Chinese delegation was staying on the lakeside as runners preparing for a weekend marathon warmed up in the sunshine.

Washington is seeking to reduce its US$295 billion goods trade deficit with Beijing and persuade China to renounce what the United States says is a mercantilist economic model and contribute more to global consumption, a shift that would require politically sensitive domestic reforms.

Beijing has pushed back against what it sees as external interference. It wants Washington to lower tariffs, clarify what it wants China to buy more of, and treat it as an equal on the world stage.

China’s official Xinhua News Agency said in a commentary on Saturday that the United States’ “reckless abuse of tariffs” had destabilized the global economic order, but added that the negotiations represented “a positive and necessary step to resolve disagreements and avert further escalation.”

“Whether the road ahead involves negotiation or confrontation, one thing is clear: China’s determination to safeguard its development interests is unshakable, and its stance on maintaining the global economic and trade order remains unwavering,” Xinhua said.

Low expectations

With distrust running high, both sides have been keen not to appear weak, and economic analysts have low expectations of a breakthrough.

Trump said on Friday that an 80 per cent tariff on Chinese goods “seems right”, suggesting for the first time a specific alternative to the 145 per cent levies he has imposed on Chinese imports.

He has suggested the discussions were initiated by China. Beijing said the US requested the discussions and that China’s policy of opposing US tariffs had not changed.

China could be looking for the same 90-day waiver on tariffs that Washington has given other countries as negotiations take place, while any kind of tariff reduction and follow-up talks would be seen as positive by investors.

Swiss Economy Minister Guy Parmelin met both parties in Geneva on Friday and said the fact that the talks were taking place was already a success.

“If a road map can emerge and they decide to continue discussions, that will lower the tensions,” he told reporters on Friday, saying talks could continue into today or even tomorrow.

Switzerland helped to broker the meeting during recent visits by Swiss politicians to China and the United States.

China’s He is also provisionally scheduled to meet the director-general of the World Trade Organization, Ngozi Okonjo-Iweala, during his stay, a spokesperson for the Geneva-based watchdog said.

She has welcomed the talks “as a positive and constructive step towards de-escalation”, calling for sustained dialogue between the two top economies.

Since taking office in January, Trump has increased tariffs on Chinese imports to 145 per cent, citing unfair trade practices and accusing Beijing of failing to curb the export of chemicals used to produce fentanyl, a lethal synthetic opioid.

China retaliated with 125 per cent retaliatory tariffs, and said it would not bow to “imperialists” and bullies. — Reuters