After weeks of posturing, the U.S. and China are finally be set to meet, paving the way for a potential de-escalation to a brewing trade war between the world’s two largest economies.
According to U.S. government statements, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will travel to Switzerland on Thursday, where they are scheduled to meet Chinese Vice Premier He Lifeng, Beijing’s lead economic representative. The meeting will take place between May 9 and 12.
China’s Ministry of Foreign Affairs also confirmed He’s travel to Switzerland, where he will also meet Swiss officials.
Last Friday, China’s commerce ministry said it was “evaluating” an offer from Washington to start talks, and noted that senior U.S. officials had repeatedly expressed their willingness to start trade negotiations with Beijing. U.S. President Donald Trump claimed in late April that he had spoken to Chinese President Xi Jinping about tariffs, but declined to give any specifics.
The scheduled meeting in Switzerland is the first public commitment to start trade negotiations since Trump first imposed tariffs on China in February.
Retaliation between the U.S. and China have lifted tariffs to staggeringly high levels. China currently imposes a 125% tariff on U.S. goods, while the U.S. imposes a 145% tariff on Chinese goods. Still, both governments have carved out sweeping exemptions for goods like pharmaceuticals, semiconductors, and consumer electronics.
Asian markets barely moved despite the news that the U.S. and China might start to de-escalate. Hong Kong’s Hang Seng Index was up by 0.2%, and mainland China’s CSI 300 by around 0.6%, as of 4:00pm Hong Kong time. U.S. futures also reflected similar sentiment with the Dow Jones Futures and S&P futures gaining 0.42% and 0.43% respectively.
Still, de-escalation could be welcome news for the world’s two largest economies as Trump’s trade war begins to have an effect.
Data from late April already show a drop in imports from China to the U.S. The Port of Los Angeles’ Executive Director Gene Seroka recently warned that retailers may soon have as little as five weeks of full inventory left. Lower stockpiles could mean higher prices and supply chain snarls.
China announced key policy changes on Wednesday, including rate cuts, to bolster its economy.
This story was originally featured on Fortune.com
