The News
Top American and Chinese officials will meet in Switzerland this week in an attempt to defuse their escalating trade war.
US Treasury Secretary Scott Bessent, who has described the tit-for-tat duties as unsustainable, will hold talks with He Lifeng, China’s trade czar and a confidant of the country’s leader — but said they would not result in a deal.
On Wednesday, Chinese officials announced broad rate cuts and other measures that could infuse 2.1 trillion yuan into the economy as Beijing seeks to bolster its negotiating position.
Each country has already suffered from the punishing tariffs, with measures of China’s services and manufacturing sectors falling to multiyear lows, while the US dollar remains weak, long-term Treasury bonds command a higher risk premium, and economists increasingly project a US recession.