On May 12, 2025, the United States and China jointly announced an agreement in Geneva, Switzerland, marking a substantial easing of the China-U.S. trade war. According to the 'Joint Statement on the China-U.S. Economic and Trade Talks in Geneva', both sides agreed to suspend a portion of tariffs imposed on each other's goods for 90 days, with a comprehensive reduction exceeding 100%. The specific measures are as follows:

- The U.S. adjusts tariffs on China: suspends the 24% tariff imposed on Chinese goods from the executive order dated April 2, 2025, retaining a remaining 10% tariff; cancels additional tariffs imposed by two executive orders dated April 8 and 9.

- China adjusts tariffs on the U.S.: suspends the 24% counter-tariff on U.S. goods, retaining 10%; cancels previous non-tariff restrictions on U.S. agricultural products, automobiles, and other sectors.

Both sides also agreed to establish a mechanism for ongoing consultations, which may further adjust the remaining 10% tariff in the future and use it as leverage in subsequent negotiations.

This breakthrough development brings positive impacts to both China and the U.S., as well as the global economy. For both sides, lowering tariffs will reduce the cost of exported goods, enhance market competitiveness, and the export volume of related enterprises is expected to rebound. At the same time, the speed of supply chain restructuring may slow down, and companies from both sides will reassess their production layouts and market strategies in each other's countries, consolidating partnerships. For the global economy, easing the trade war helps stabilize the global trade pattern, restore market confidence, and promote stable development of global industrial and supply chains. Global capital markets have responded positively to this news, with the A-share export recovery sector leading the gains, and the Shanghai Composite Index approaching 3,400 points; the Dow Jones Industrial Average in the U.S. rose by 1.4%, with strong performance from technology stocks.