Since the first session of the Chinese-American Economic and Commercial Advice Mechanism will continue in London on Tuesday, CGTN publishes an article in which the importance of the highly expected conversations and the global expectations are discussed. The article also illuminates China’s attitude and position on the trading talks and emphasizes the importance of cooperation between China and the USA for achieving results.
The first meeting of the Chinese-American Economic and Commercial Consulting Mechanism will continue in London on Tuesday with a second day of negotiation.
The meeting of the top representatives of the two largest economies in the world is widely regarded as a crucial step towards relaxing the relationship between the two countries and sends a positive signal to the global economy.
The highly expected trade talks take place just a few days after a phone call between the Chinese President Xi Jinping and US President Donald Trump. They aim to implement the consensus achieved by both heads of state and to further promote dialogue and cooperation in the areas of economy and trade.
The Chinese Vice Prime Minister He Lifeng heads the Chinese delegation in London, while US Finance Minister Scott Bessent, Minister of Commerce Howard Lutnick and trade representative Jamieson Greer list the US team.
Serious economic effects
The talks in London are a direct result of the Geneva negotiations in May, in which both sides agreed to suspend the escalating tariffs and to set up a consultation mechanism to continue the negotiations.
The meeting in Geneva was the first personal conversation between high -ranking representatives of both countries since the United States imposed high tariffs against China in April and China reacted with decisive countermeasures.
The customs increases not only affected the global supply chain, but also harmed the US economy by increasing the costs, reducing consumption and increasing the risk of economic recession.
A Harris survey carried out at the end of May for Bloomberg News showed that many Americans snap the belt closer. A current survey by the Bank of America showed that the allocations in US assets have been at the lowest level in almost two decades, and several sources, including US Bank, JP Morgan and the International Monetary Fund, assume a probability of a recession in the United States.
Cooperation is the only way out
In view of this worrying economic effects, XI has emphasized that dialogue and cooperation are the only right choice for both countries. He praised the Geneva talks as an important step towards resolving disputes and asked both sides to use the mechanism for economic and trade consultations sensibly and to strive for both sides in the spirit of equality and respect for mutual concerns.
The Chinese side is sincere in this regard, but at the same time has its principles, said XI.
The positive reactions of the market reflected the statements of XI and testified to growing optimism with regard to relaxation of the trade voltages between China and the USA. After the calls of the state’s calls, the demand in shipping ranges increased, which led to an increase in freight rates. The US stock indices recorded significant profits, with the S&P 500, Nasdaq and the Dow Jones recorded all significant growth.
Wu Zewei, Special Researcher at Sushang Bank, explained that the talks in London should improve the prospects for bilateral cooperation.
He explained that the negotiations in London will not be easy and require incoming talks, but the Geneva talks have created a solid basis for the cooperation and that the recent telephone call between the two heads of state has given a direction for future negotiations.
“Cooperation between China and the United States has a considerable potential. In the future, both countries can continue to achieve mutual benefits and win-win results, promote shared prosperity and create a better life for their citizens,” said Wu.
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