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After months of heightened tariff pressure, the US and China appear to be moving towards de-escalation.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer concluded talks with Chinese Vice-Premier He Lifeng in Geneva, calling the discussions “productive” and a sign of “substantial progress”.
The talks resulted in an agreement to establish a bilateral mechanism for continued dialogue. Both delegations emphasised shared interests.
US businesses, including major retailers, had warned of looming shortages if tensions continued. President Donald Trump called the talks a “friendly but constructive reset”.
Chinese state media described them as “candid and in-depth”, highlighting a desire to stabilise trade ties amid slowing global growth and mounting domestic pressures.
Markets responded positively — the S&P 500 and Nasdaq futures rose 1,5 percent and 2 percent, respectively.
Gold fell 1,4 percent, and 10-year US Treasury yields climbed slightly to 4,4 percent. Asian equities also gained, with Hong Kong’s Hang Seng Index up 0,9 percent and the CSI 300 rising 0,6 percent.
The dollar strengthened modestly, while haven currencies (like the yen and franc) weakened.
Amid trade tensions, China continues its push towards becoming the world’s first ‘electrostate’.
Under President Xi Jinping’s leadership, the country has prioritised energy self-sufficiency and technological leadership in clean energy sectors.
Clean technologies now make up 10 percent of China’s GDP and were responsible for a quarter of its economic growth last year.
Electrification has reached 30 percent of energy use, well above the 22 percent seen in the US and Europe, and continues to accelerate.
Electric vehicle sales are expected to exceed 12,5 million in 2025, outpacing internal combustion vehicles. — Moneyweb
Online Reporter