US Treasury Secretary Scott Bessent announced that formal discussions between the United States and China are set to begin on May 10 in Switzerland. The meeting, which marks the opening of renewed diplomatic engagement, is designed as a first step toward de-escalating tensions between the two economic giants.

Bessent, speaking at a Financial Services and General Government Subcommittee hearing on Oversight of the US Department of the Treasury, clarified that these initial talks will focus on easing current strains rather than negotiating a comprehensive trade deal. “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,” he stated.

Joining Bessent in Switzerland will be US Trade Representative Jamieson Greer. The Chinese delegation will be led by Vice Premier He Lifeng, a key economic advisor to President Xi Jinping. He is scheduled to be in Switzerland between May 9 and 12, providing a window for multiple meetings aimed at setting the stage for future, more substantive trade discussions.

This new round of diplomacy reflects the Biden administration’s strategy of phased engagement, prioritizing the stabilization of trade relations before delving into broader economic agreements. Analysts see the talks as a vital move to prevent further escalation of tariffs and to build a foundation for sustained dialogue between the two nations.

While the path to a comprehensive trade deal remains uncertain, both sides appear committed to re-establishing communication channels and addressing points of friction. The international community is watching closely, hopeful that these initial steps will lead to more meaningful progress in the months ahead.