WASHINGTON/BEIJING: U.S. Treasury Secretary Scott Bessent and lead trade negotiator Jamieson Greer are meeting China's top economic official, He Lifeng, in Switzerland this weekend.

This meeting could be the first step in ending the trade war that has been hurting the global economy.

News of the meeting, which was announced by Washington through week, led to a rise in U.S. and Asian stock markets, and a steadying of the U.S. dollar.

Tensions have been high between the U.S. and China, with tariffs on each other's goods reaching over 100 percent. Bessent described the situation as akin to a trade ban. These tensions, along with new U.S. tariffs on many different countries, have disrupted global trade, affected supply chains, and raised concerns about an economic slowdown worldwide.

The talks in Switzerland—a neutral location—are covering reducing tariffs, controlling exports, and recent U.S. changes to rules on low-value imports. China agreed to the meeting, saying it reflects a serious effort to find solutions that consider global expectations and the concerns of both Chinese and American businesses and consumers.

This is the first high-level U.S.–China meeting since March. Until now, China had refused to engage in talks unless the U.S. removed its tariffs. However, last week, China indicated that it was considering the U.S. invitation to meet.

A Chinese spokesperson stated that China still opposes U.S. tariff policies but is willing to engage in dialogue.

China's economy is feeling the pressure from the trade war. Many factories have been severely impacted, and some experts estimate that the country could lose up to 16 million jobs. In response, China's central bank announced new financial measures to support the economy, including possible interest rate cuts.

Some analysts think this is also a signal to the U.S. that China is calm and not negotiating out of desperation.

The U.S. has been holding trade talks with many countries since President Trump announced new 10 percent tariffs in April. Additional increases are scheduled for July unless agreements are reached. The U.S. has also imposed 25 percent tariffs on cars, steel, and aluminum, as well as high tariffs on China—with further increases on the way.

China retaliated with 125 percent tariffs on U.S. goods, and the European Union is preparing its own countermeasures.

While this weekend's talks aim to de-escalate tensions, it's unclear how much progress will be made. A Chinese expert stated that real progress will depend on both sides agreeing to reduce tariffs and continue the talks.

Bessent said both countries know this situation can't continue and hope to find common ground for fair trade. Meanwhile, the U.S. is working on trade deals with 17 countries, some of which could be announced soon. Talks with the U.K. and other countries, such as Indonesia, are also progressing.

Ironically, while Trump's tariffs are meant to reduce the U.S. trade deficit, it actually grew in March as companies rushed to import goods before the tariffs took effect—though the trade gap with China did shrink.

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