The China-U.S. talks went surprisingly smoothly, and the fundamentals of the raging bull have gradually taken shape!

Just now, China and the U.S. made statements regarding tariff differences in negotiations in Geneva, with both sides believing they reached friendly consultations and some consensus, and a joint statement will be issued later today.

This is the first face-to-face consultation between the two sides since Trump took office.

The following is an overview of the negotiation details based on existing information:

Core issues and positions of the negotiation

1. The bottom line for China:

Demanding the U.S. cancel all new tariffs and opposing exchanging tariff reductions for political conditions (such as the fentanyl issue).

Insisting on autonomy over rare earth and critical mineral export policies, rejecting external interference.

Maintaining industrial subsidies, technological autonomy, and development in key areas.

Insisting on resolving disputes based on the WTO and opposing U.S. unilateral mechanisms.

RMB exchange rate policy and financial opening pace to be independently controlled by China.

2. The U.S. position:

Proposing to reduce tariffs from 145% to 80% (later reports suggested reducing to the initial 34%), but requiring China to cooperate on trade balance and the fentanyl issue.

Emphasizing a policy of “reciprocal tariffs,” attempting to force China to reduce trade deficits through high tariffs.

The U.S. side is unwilling to cancel tariffs before negotiations, trying to maintain pressure.

Progress of negotiations

First day of talks (May 10): The two sides held over 10 hours of closed-door consultations, with no specific progress made public. The atmosphere of the negotiations was tense, with both sides trying to avoid being seen as the compromising party.

Progress on the second day (May 11): Negotiations continued, with Trump proposing to reduce tariffs to 80% on the “truth” (later media reported 34%, but there was no immediate response from the Chinese side). The two sides continued discussions under the facilitation of the Swiss ambassador to the UN, with the atmosphere more relaxed compared to the first day.

Outcome: On May 12, both sides announced that the negotiations had achieved “substantive progress” and agreed to establish a long-term trade consultation mechanism led by He and Besant from China. The Chinese side pledged to promote the reduction of the trade deficit, and both sides issued a joint statement expressing their willingness to ease the situation.

Specific agreement details have not been made public, but U.S. Treasury Secretary Besant indicated that the negotiations were “productive,” suggesting that more content would be announced subsequently.

Some analyses suggest that U.S. tariffs may decrease to 50% or lower, but this has not been officially confirmed.

It's better for the brothers to talk than not to talk, and the fundamentals of the raging bull have gradually taken shape!