The United States and China have concluded two days of high-level talks in Geneva that resulted in significant progress in resolving ongoing trade tensions between the world's two largest economies. 🌐
Key achievements of the negotiations
According to official sources, the two sides agreed to establish a new mechanism for economic and trade consultations that would facilitate a more systematic resolution of trade disputes. A joint statement detailing the agreement is expected to be released today, May 12, 2025. 📝
The American delegation was led by Commerce Secretary Lisa Garcia, who described the talks as "the most productive in the last five years." The Chinese delegation was led by Vice Premier Liu He, who noted that "the spirit of cooperation prevailed over differences."
Tariff reduction and economic prospects
The US agreed to cut tariffs on about $120 billion worth of Chinese goods, while China pledged to increase purchases of US agricultural products and energy by about $50 billion over the next two years, according to sources close to the talks. 💹
Goldman Sachs analysts predict that the agreement could add up to 0.3% to global GDP growth in 2026 if all agreements are fully implemented.
Technological agreements
The negotiations focused on the technology sector, with the parties reaching a preliminary agreement on some issues related to technology transfer and intellectual property protection. 🔬
"We've seen significant progress in China's position on protecting the intellectual property of American companies operating in the Chinese market," said Michael Brilliant, a spokesman for the U.S. Chamber of Commerce.
Market reaction
Financial markets reacted positively to news of progress in the talks. The S&P 500 rose 1.8% at the opening bell, while China's Shanghai Composite Index rose 2.5%. 📈
Shares of companies most dependent on Sino-US trade showed particularly strong growth, including Apple (+3.2%), Tesla (+4.1%) and Caterpillar (+3.7%).
Problematic issues and prospects
Despite the progress, some key issues remain unresolved. According to Bloomberg, the two sides have not yet reached a final agreement on subsidies for state-owned enterprises in China and access for American financial companies to the Chinese market. ⚖️
"This is an important step forward, but it is not a permanent solution to all the problems," said Scott Kennedy, a senior adviser at the Center for Strategic and International Studies. "There is still a long way to go to fully normalize trade relations."
Global implications
Experts say the easing of trade tensions between the US and China could have global implications, especially for countries economically linked to both powers. 🌍
"For Southeast Asian countries that are part of the supply chains linking the US and China, this is very good news," said Marie Panuzzi, chief Asia Pacific economist at HSBC.
European leaders also welcomed the progress in the talks, with the European Commission's trade spokesman saying that "reducing tensions between the world's two largest economies is good for the global trading system as a whole."
What's next?
According to sources close to the talks, the two sides plan to hold the next round of consultations in Beijing in September 2025. These talks will focus on a longer-term structure for trade relations. 🗓️
The joint statement, to be released today, is also expected to provide a roadmap for resolving outstanding issues and further strengthening economic ties.
Conclusion
Progress in resolving trade tensions between the U.S. and China represents a significant turning point in relations between the two powers. While many challenges remain, the current agreements provide grounds for optimism about the future of global trade. 🤝
Global markets and the business community are closely monitoring developments, recognizing that stable relations between the two largest economies are critical to global economic growth and stability.