On May 10-11 local time, He Lifeng, the Chinese leader in China US economic and trade affairs and Vice Premier of the State Council, held high-level talks on China US economic and trade with the US leader, US Treasury Secretary Bessent, and Trade Representative Greer in Geneva, Switzerland. Both sides had frank, in-depth, and constructive communication on the implementation of the important consensus reached during the first Sino US phone call on January 17 this year, and reached a series of important consensuses in the field of economy and trade. At 9:00 am local time on May 12th, both sides released the Joint Statement of the China US Geneva Economic and Trade Talks.

China and the United States have agreed to lower tariffs within the next 90 days, marking a significant cooling of the trade war between the world's two largest economies.

According to the agreement reached in Geneva, the United States will reduce tariffs on Chinese goods from 145% to 30%, and China will reduce tariffs on American imports from 125% to 10%.

The statement points out that China and the United States recognize the importance of bilateral economic and trade relations for both countries and the global economy; Recognizing the importance of sustainable, long-term, and mutually beneficial bilateral economic and trade relations; Given the recent discussions between both parties, we believe that continued negotiations will help address the concerns of both parties in the economic and trade fields; In the spirit of mutual openness, continuous communication, cooperation, and mutual respect, continue to promote relevant work; Both parties commit to taking the following measures before May 14, 2025:

The United States will (1) modify the ad valorem tariffs imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and Macao Special Administrative Region) as stipulated in Executive Order No. 14257 of April 2, 2025. Among them, 24% of the tariffs will be temporarily suspended for the initial 90 days, while retaining the remaining 10% of the tariffs imposed on these goods in accordance with the provisions of the Executive Order; （2） Cancel the additional tariffs imposed on these goods under Executive Orders No. 14259 and No. 14266 of April 8, 2025 and April 9, 2025, respectively.

China will (1) correspondingly modify the ad valorem tariffs imposed on US goods as stipulated in Announcement No. 4 of the Tax Commission in 2025, with 24% of the tariffs temporarily suspended for the initial 90 days, while retaining the remaining 10% of the tariffs imposed on these goods, and canceling the additional tariffs imposed on these goods according to Announcement No. 5 and No. 6 of the Tax Commission in 2025; （2） Take necessary measures to suspend or cancel non-tariff countermeasures against the United States starting from April 2, 2025.

After taking the above measures, both sides will establish a mechanism to continue negotiations on economic and trade relations. The Chinese representative is Vice Premier He Lifeng of the State Council, while the US representatives are Treasury Secretary Scott Besant and US Trade Representative Jamison Greer. Negotiations can be conducted in China, the United States, or a third country agreed upon by both parties. Both parties may engage in working level consultations on relevant economic and trade issues as needed.

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