Global Economy Hangs in Balance: China and U.S. Engage in Trade Talks

Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent met in Geneva to discuss resolutions to the ongoing trade war. The conflict, which began with increasing tariffs, affects global markets. Despite low expectations of a resolution, the dialogue is seen as a step towards easing tensions.

The ongoing trade war between China and the United States saw a potential thaw as Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent resumed discussions in Geneva. This meeting marks a tentative first step towards resolving a conflict that has greatly disrupted the global economy.

Since the spike in tariffs, supply chains have been unstable, financial markets jittery, and fears of a worldwide downturn intensified. While President Trump's 145% tariff decision hangs heavy, both nations seem committed to continuing dialogue, with Swiss political mechanisms facilitating the Geneva meeting.

Although expectations of any substantial breakthrough are low due to mutual distrust, the diplomatic talks signify a crucial step in potentially de-escalating tensions. Washington aims to balance its trade deficit with China, which in turn demands to be treated as an equal on the global platform.

(With inputs from agencies.)