The biggest global news of the time is that the US Treasury Secretary, Scott Bessent and the chief trade negotiator, Jamieson Greer, will meet China’s economic tsar, He Lifeng, in Switzerland this weekend for tariff talks. These talks could be the first step towards resolving a long-standing trade war between the two countries that has disrupted global markets.

News of the Geneva meeting was first announced by Washington late on Tuesday and sent US equity index futures higher while the stock market in China and Hong Kong also followed suit during Asian trading on Wednesday.

These talks follow weeks of escalating tensions related to duties on goods and imports soaring up to a hundred per cent between two of the world’s largest economies, China and the US.

President Donald Trump’s decision to slap high duties on a dozen countries last month has destroyed supply chains, dwindled the financial market and struck fear in the global economic growth. This negotiation will be convened in Switzerland, a country known for its neutrality. The talks will likely discuss the reduction of the broad tariffs duties on specific products, export control and Trump’s decision to end de minimis exemptions on low-value imports.

Chinese Side

However, the Chinese side has not come up with any public response on the talks. In the past as well, Beijing has largely adopted a fiery rhetoric as tensions between its country and Washington have constantly escalated. Even though China has agreed to sit down for talks, the country will maintain its hardline tone in response to the US tariffs. China will also not move away from flexing its position of strength in the global economy.

The Chinese commerce minister said on Friday the country is evaluating an offer from Washington to hold talks.