The two countries are talking recently, but why now?

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By [email protected]


Laura Baker

China correspondent

Witness: The United States and China are ready to talk about the customs tariff – who will be siham first?

The United States of China The trade war can be abandonedWith the world’s largest economists to start talks in Switzerland.

summit Commercial officials from both sides will meet on Saturday At the first high -level meeting since US President Donald Trump struck China with definitions in January.

Beijing took revenge immediately and followed in a tense confrontation, as the two countries retreated to each other. The new American definitions of Chinese imports offer 145 %, and some American exports to China face duties of 125 %.

There were weeks of stark, sometimes fiery, as each side sought to draw the other as the most despair party.

However, they will face each other at the negotiating table.

Why now?

Savings

Despite multiple rounds of customs tariffs against the tat, the two sides have sent indications that they want to break the stalemate. However, it was not clear from Siomed first.

“None of the two parties want to back down,” said Stephen Olson, a senior visitor colleague at the ISEAS-YouSOF ISHAK and a former American commercial negotiator.

“The talks are taking place now because both countries have ruled that they can move forward without appearing on the other side.”

However, Chinese Foreign Ministry spokesman Lynn Jian Jian said on Wednesday that “the talks are being held at the request of the United States.”

The Ministry of Commerce set it as a good for Washington, saying that it was answering the “calls of American companies and consumers”.

However, the Trump administration claims that Chinese officials “want to do business” because “their economy is collapsing.”

“They said we started? Well, I think they should return and study their files,” Trump said at the White House on Wednesday.

Getty Images Xi Jinping wears a black coat and a light blue tie, walking in front of a row of Russian soldiers with warfareGety pictures

While Chinese trade officials go to Geneva, Xi Jinping in Moscow to meet Vladimir Putin

But as the talks approached, the president had more diplomacy: “We can all play games. Who did the first call, who did not do – does not matter.” “It only matters what is happening in that room.”

The timing is also the Beijing key because during a visit to XI to Moscow. He was an honorary guest on Friday at the Moscow Victory Day procession to celebrate the eighties to win World War II against Nazi Germany.

Xi stood alongside leaders from all over the world – a reminder to the Trump administration that China has not only other trade options, but also provides itself as an alternative global leader.

This allows Beijing to store strength even when he goes to the negotiating table.

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Trump insists that the customs tariff will make America stronger, and that Beijing has pledged to “fight to the end”- but the fact is that the drawings hurt both countries.

China’s factory output was a great success, according to government data. Manufacturing activity in April decreased to the lowest level since December 2023. A survey conducted by Caixin News Outlet Caixin this week showed that service activity has reached the lowest level in seven months.

The BBC found that the Chinese exporters were reeling from the sharp definitions, with Accumulation of stocks in warehousesand Even when they strike a challenging note and looking for markets outside the United States.

“I think (China) is aware that the deal is better than the lack of a deal,” says Bert Hoffman, a professor at the East Asian Institute at Singapore National University in Singapore.

So they took a pragmatic look and said: “Well, we need to continue these talks. “

Thus, with the end of the May’s main vacation in China, Bijin officials decided that the time is right to speak.

On the other hand, the uncertainty caused by the customs tariff led to the contract with the American economy for the first time in three years.

And industries that have long been dependent on Chinese goods are especially anxious. The owner of the Los Angeles Games Company BBC said They were “looking at the total collapse of the supply chain.”

BBC/XIQing swings a white shirt and blue jeans, carrying a black backpack, walking along a corridor in a mall, surrounded by the most luxurious gaming storesBBC/xiqing Wang

Games for sale at Yiwu, Chinese, the largest wholesale market in the world – China sold $ 10 billion to games for the United States last year

Trump has admitted himself that American consumers The sting will feel.

“American children may have two dolls instead of 30 dolls,” he said at the cabinet meeting this month.

Trump’s approval categories also slipped about inflation and potential stagnation, as more than 60 % of Americans said he focused a lot on the definitions.

“Both countries are pressure to provide a little bit of reassurance to the growing local markets, companies and electoral districts,” says Mr. Olson.

“Two days of meetings in Geneva will serve this purpose.”

What happens after that?

While the conversations were optimistic, the deal may take some time to achieve it.

Hoffman said that the talks will often be on “touching base”, adding that this might seem to be “an exchange of jobs”, and if things go well, “Agenda () will be talks in the future.”

The negotiations are expected to take public for months, as what happened during the first period of Trump.

Nearly two years after the tariff against the Tat, the United States and China signed the “first stage” deal in early 2020 to suspend or reduce some fees. Until then, it did not include Thorn issuesLike Chinese government support for the main industries or the timetable to get rid of the remaining customs tariffs.

In fact, many of them remained in place through the chairmanship of Joe Biden, and adds the latest tariff of Trump to these old drawings.

What can appear this time is the “first stage deal on doping”, Mr. Olson said: That is, he will go beyond the previous deal and try to handle flash points. There is a lot, from The illegal fentanel trade that Washington wants to flound Beijing’s relationship with Moscow.

But all this is far from the line, experts warn.

“The regulatory friction that will not be resolved between the United States of Chinese any time soon,” adds Mr. Olson.

“Geneva will not only produce Anodyne’s expressions about” explicit dialogues “and the desire to continue to talk.”



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