China trade deal talks continued through the weekend, with a joint U.S.-China statement expected Monday following intense negotiations. The negotiations took place in Geneva and are being called a major step forward toward a potential US China trade deal.
Positive Signals, But Few Details
Senior officials from both countries met for two days. They described the talks as “constructive” and “productive.” But neither side has confirmed the signing of an actual trade deal with China yet.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer called the talks a success. They cited “substantial progress” and said a joint agreement could help reduce what Greer called a “$1.2 trillion trade deficit.”
China Echoes Optimism
Chinese Vice Premier He Lifeng led Beijing’s delegation. At a press conference, he did not confirm a deal but praised the tone and results. He called the meetings “candid, in-depth, and constructive.”
Chinese trade official Li Chenggang said a new “consultation mechanism” would be launched soon. This will include regular meetings between both sides to handle economic issues.
Markets Respond to Hope of a Deal
The announcement had an immediate effect. Dow futures rose 1%. S&P 500 futures climbed 1.3%. Nasdaq Composite futures jumped 1.7%. Asian markets were also up.
Investors are welcoming any easing of the US China trade war, which began after former President Donald Trump imposed steep tariffs. These tariffs reached as high as 145% on Chinese goods. China responded with 125% tariffs on US goods.
Tariffs Remain a Sticking Point
While progress has been made, there’s still uncertainty around tariff reductions. A statement from the White House on Sunday mentioned a “deal” but included no specifics.
Even with an agreement, the US tariff on Chinese goods may not drop below 10%. That’s the same rate set in the recent UK deal, which included only minor tariff carve-outs.
Ports Still Stalled
Despite the upbeat tone, trade remains slow. On Friday, US port officials reported no cargo ships had departed from China for major West Coast ports within a 12-hour period. That has not happened since the COVID-19 pandemic.
A Global Impact
Officials from both sides agree the talks could help stabilize global markets. A formal china trade deal may prevent a recession triggered by price increases and supply chain disruptions.
He Lifeng encouraged “a practical attitude” and said the focus should be on expanding cooperation.
Awaiting Monday’s Joint Statement
The China trade talks may have laid the groundwork for a long-term economic framework. Both sides are expected to release a joint statement Monday morning in Geneva.
The world will be watching to see whether this China deal marks a true turning point—or just another pause in an ongoing economic conflict.
Source: CNN
