In a major diplomatic development, China and the United States have reached a series of major trade and economic consensuses following two days of high-level talks in Geneva, Switzerland. Chinese Vice Premier He Lifeng described the meetings as “in-depth, candid, and constructive,” with both sides agreeing to establish a new economic and trade consultation mechanism aimed at improving bilateral economic ties.
According to a statement shared by the Chinese Embassy in the US, China emphasized the need for practical and equal dialogue, pledging to work with the US to implement the consensus reached by Presidents Xi Jinping and Donald Trump during their phone call on January 17.
“The two sides should…manage differences, explore cooperation potential, extend the cooperation list, and make the pie of cooperation bigger,” the embassy said.
Substantial Progress Confirmed by US Treasury Secretary
US Secretary of the Treasury Scott Bessent, leading the American delegation, confirmed “substantial progress” and praised the Swiss government for hosting the crucial discussions.
“The talks were productive… we will be giving details tomorrow,” said Bessent, adding that both he and Ambassador Jamieson Greer briefed President Trump following the discussions.
Key Highlights of the Geneva Agreement
- Creation of an economic and trade consultation mechanism between China and the US.
- Mutual commitment to expand areas of cooperation and resolve trade-related issues through dialogue.
- Preliminary steps toward reducing the current 145% US tariff on Chinese goods, with Trump suggesting an 80% level “seems right.”
- US officials stressed the agreement is part of a broader response to a $1.2 trillion US trade deficit, declared a national emergency by President Trump.
Ambassador Greer: Differences Smaller Than Expected
US Trade Representative Ambassador Jamieson Greer noted the quick progress in Geneva, crediting months of preparatory groundwork for the smooth conclusion.
“We were able to come to an agreement quickly… which reflects that perhaps the differences were not as large as previously thought,” Greer said.
The announcement marks a significant shift in US-China economic relations, signaling a de-escalation of tensions and a move toward structured, ongoing dialogue. The new mechanism is expected to provide greater stability in global markets, as both countries seek to manage competition without confrontation.