On May 12, 2022, the United States and China reached an agreement in Geneva, Switzerland, announcing a suspension of certain tariff increases, with an overall reduction exceeding 100%, while retaining a 10% baseline tariff as a negotiation chip. This breakthrough marks the first substantial easing since the trade war began in 2018, leading to a rapid response in global markets, with A-shares, Hong Kong stocks, and US tech sectors collectively rising, and the offshore yuan appreciating by over 400 basis points in a single day.

The agreement includes a 90-day buffer period, during which both sides will establish a normalized consultation mechanism and adjust certain non-tariff measures. Industries such as photovoltaics and semiconductors stand to benefit significantly, but uncertainties remain regarding technological competition and supply chain restructuring. Analysts believe that this move provides short-term relief from global economic and trade tensions, but long-term competition will persist, and attention should be paid to the progress of subsequent negotiations.