Trade negotiations between the United States and China have reached an impasse, with both sides awaiting potential involvement from their respective leaders to break the deadlock, according to a report on Thursday.
What Happened: Trade discussions between the United States and China have encountered a slowdown. U.S. Treasury Secretary Scott Bessent indicated. He described the negotiations as “a bit stalled.”
Bessent said that achieving a final agreement might require direct input from President Donald Trump and China’s President Xi Jinping, reported Reuters.
Two weeks have passed since breakthrough negotiations led by Bessent resulted in a temporary truce in the ongoing trade conflict between the two largest global economies. However, Bessent mentioned to Fox News that progress has been sluggish since then.
Despite the current stall, Bessent remains optimistic, stating that he anticipates further discussions in the upcoming weeks. The involvement of both nations’ leaders is deemed crucial to push the deal over the finish line.
Why It Matters: The recent slowdown in trade talks comes after a series of significant developments in U.S.-China relations. Earlier this month, high-level trade discussions resumed in Geneva, marking the first face-to-face negotiations since the imposition of heavy tariffs by both countries.
Trump described these talks as a “very good” meeting, expressing hope for improved Chinese receptiveness to American businesses.
However, Trump dealt a double blow to US-China relations by cutting off China’s access to key semiconductor design software and announcing plans to aggressively revoke visas for Chinese students, particularly those in sensitive fields or linked to the Communist Party, reported CNN.
China recently urged the U.S. to revoke unilateral tariffs after a U.S. federal court blocked most of Trump’s extensive tariffs. He Yongqian, a spokeswoman for China’s Ministry of Commerce, called for the U.S. to heed international and domestic voices and withdraw these measures.
Adding to the complexity, a federal appeals court temporarily preserved Trump’s tariffs, granting a stay on a lower-court ruling that had invalidated a significant portion of them.
Photo Courtesy: Maxim Elramsisy On Shutterstock.com
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
