WASHINGTON/BEIJING, May 7 (Reuters) - U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar He Lifeng in Switzerland this weekend for talks that could be the first step toward resolving a trade war disrupting the global economy.
News of the meeting announced by Washington late Tuesday, and later confirmed by Beijing, sent U.S. equity index futures higher, bringing relief to markets roiled by U.S. President Donald Trump's barrage of tariffs.
China and Hong Kong stocks also opened up as Asian trading began on Wednesday.
The meeting with China's vice premier comes after months of escalating tensions that have seen duties on trade between the world's two largest economies soar well beyond 100%.
The two sides are expected to discuss the reductions of the broader tariffs, two sources familiar with the planning told Reuters. The negotiating teams are also expected to discuss eliminating duties on specific products, U.S. policies on de minimis and the U.S. export control list, sources said.
China's State Council did not immediately reply to a faxed request for comment.
Washington and Beijing have been locked in a cat-and-mouse game over tariffs, with each side unwilling to be seen to back down in a trade war that has sent shock waves through global markets and upended supply chains.
The U.S. Trade Representative's office and Treasury said Greer and Bessent would travel together to Geneva on Thursday and would also meet with Swiss President Karin Keller-Sutter to discuss negotiations over reciprocal trade.
"My sense is this will be about de-escalation," Bessent told Fox News Channel's "The Ingraham Angle" after the announcement. "We've got to de-escalate before we can move forward."
After the U.S. announcement, a Chinese commerce ministry spokesperson confirmed that China had agreed to meet the U.S. envoys.
"On the basis of fully considering global expectations, China's interests, and the appeals of U.S. industry and consumers, China has decided to re-engage the U.S.," the Chinese statement said.
"There is an old Chinese saying: Listen to what is said, and watch what is done. ... If (the U.S.) says one thing but then does another, or attempts to use talks as a cover to continue coercion and blackmail, China will never agree."
This is the first meeting between senior Chinese and American officials since U.S. Senator Steve Daines met Premier Li Qiang in Beijing in March.
Beijing has largely kept up its fiery rhetoric as tensions soared over the past few weeks, having vowed to "never kneel" to Trump's additional 145% tariffs which Chinese propaganda likened to "drinking poison".
Economists have forecast that Trump's tariffs on China and dozens of other countries could sharply lower global growth, while Japanese investment bank Nomura warned last week it could also cost China up to 16 million jobs.
Trump and his trade team have sent mixed signals over progress in talks with major trading partners rushing to cement agreements with Washington and avoid the imposition of hefty import taxes on their goods.
Bessent told lawmakers earlier in the day that the Trump administration was negotiating with 17 major trading partners, but not yet China, and could announce trade agreements with some of them as early as this week.
Trump told reporters before a meeting with Canadian Prime Minister Mark Carney that he and top administration officials will review potential trade deals over the next two weeks to decide which ones to accept, triggering a slide in stocks.
Bessent told Fox News the two sides would work out during their meeting on Saturday "what to talk about."
"Look, we have a shared interest that this isn't sustainable," Bessent said. "And 145%, 125% is the equivalent of an embargo. We don't want to decouple. What we want is fair trade."
Photo from Reuters
