Top US trade officials will hold talks with their Chinese counterparts later this week in Switzerland, the White House has confirmed.
It will be the first time that senior representatives from the two countries will meet in person since the escalation of a trade war earlier this year.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will speak to a Chinese delegation that will include the country's Vice-Premier He Lifeng.
The talks come several months after US President Donald Trump roiled the global economy by announcing sweeping tariffs on 2 April. China was the country hit hardest by the measures.
The US is currently imposing tariffs of 145% on Chinese goods, while China’s counter-tariffs stand at 125%. However, both countries have allowed exemptions to lessen the impact.
Nevertheless, both the US and China are feeling the consequences, with trade between the world's two largest economies significantly reduced.
Forecasters have raised the possibility of the US sliding into a recession, while China’s factory activity contracted in April to its lowest level since December 2023.
Speaking about the talks in Switzerland, Bessent said they could signal a shift in direction.
"My sense is that this will be about de-escalation, not about the big trade deal…but we've got to de-escalate before we can move forward," Bessent told Fox News.
Beijing said it will attend the talks after being approached by Washington.
A spokesperson for the Chinese Commerce Ministry also said China would not "sacrifice its principles or global equity or justice in seeking any agreement."
Wendy Cutler, a former US trade official who is now vice president of the Asia Society Policy Institute, welcomed the development.
"As the first face-to-face meeting between senior US and Chinese officials since Trump's inauguration, it's an important opportunity to have initial talks on unwinding some tariffs, mapping out a path forward, as well as raising concerns," Cutler said.
"We should not expect any quick victories — this will be a process that will take time."
