China-US Geneva Reset

by Muhammad Asif NOOR

The recent high-level economic and trade talks between China and the United States in Geneva have opened a constructive window in a time of global economic uncertainty. After months of heightened tariff escalation, both sides have now agreed to suspend and reduce many of the aggressive trade measures imposed since April. This decision sends a strong signal, not only to the bilateral actors involved but to the entire world, that cooperation and communication between major powers remain achievable and essential.

The Geneva negotiations culminated in a joint statement that confirmed a mutual commitment to de-escalation. The United States agreed to remove 91 percent of the additional tariffs introduced under two executive orders and suspend 24 percent of the reciprocal tariffs for 90 days, retaining only a 10 percent base tariff. China reciprocated with identical tariff rollbacks: a 91 percent elimination of countermeasures and a temporary suspension of 24 percent of duties, maintaining the same 10 percent baseline. These steps are scheduled to take effect from May 14, 2025.

These adjustments are substantial, both symbolically and materially. For the first time since the re-imposition of the tariff war under President Trump earlier this year, there is a measured retreat from brinkmanship. The previous rounds of tariffs, which had reached 145 percent on Chinese goods and 125 percent on U.S. goods, had placed immense strain on global supply chains, disrupted trade worth over $660 billion, and contributed to inflationary pressure worldwide.

The structure and tone of the Geneva talks carried equal importance. Chinese Vice Premier He Lifeng, leading Beijing’s delegation, emphasized that the discussions were in-depth, candid, and constructive. This description was not rhetorical. It represented a shift from confrontation toward dialogue, rooted in mutual respect and the desire for shared benefit. He Lifeng further confirmed that the talks produced “substantive progress” and that both countries will now establish a formal economic and trade consultation mechanism. This move institutionalizes the engagement, offering a structured platform for the resolution of ongoing disputes.

From China’s side, this process was handled with strategic clarity. China exercised restraint, matched each U.S. move proportionally, and waited until conditions allowed for a dignified re-engagement. That moment came not through weakness but through strength, a reflection of Beijing’s consistent diplomacy and economic resilience. China’s rationale is firmly anchored in its commitment to multilateralism and inclusive growth. China’s diplomacy does not revolve around a single axis. It is global, pragmatic, and increasingly trusted by developing nations who see in China an alternative model of cooperation without conditionalities. The economic burden of the tariff war has not been limited to Asia.

In the United States, manufacturing slowed, consumer prices rose, and logistical networks came under stress. American businesses particularly in retail, toys, and electronics have voiced alarm. Several companies filed legal challenges to the legality of Trump’s reciprocal tariff regime. Others warned of supply chain collapse. U.S. Treasury Secretary Scott Bessent, who co-led the talks in Geneva, acknowledged in public remarks that the tariff levels resembled an economic embargo and that neither country desired that outcome. His comments signal a growing recognition in Washington that extreme tariff measures hurt American consumers and producers just as much.

In Geneva, China also agreed to withdraw some of its non-tariff measures, including sanctions on U.S. companies and export restrictions on rare earths. This gesture, while unilateral, was based on principles. Beijing remains committed to fair trade grounded in international law. It continues to reject unilateralism, coercion, and the politicization of economic policy. Chinese Foreign Ministry spokesperson Lin Jian reminded the world that real cooperation requires sincerity and respect not blame games or shifting responsibility.

One of the most significant achievements of the Geneva process was the agreement to form a standing joint mechanism for continued trade discussions. Unlike previous rounds that ended in temporary truces, this step creates continuity. It ensures that when disputes arise again, they can be managed without risking another shock to the world economy.

The result of these negotiations is expected to echo globally and watched closely by stakeholders across Europe, Asia, Africa, and Latin America. Many countries are themselves under new U.S. tariffs and face the same uncertainty that China confronted. The success of this diplomatic engagement offers a viable model: one based on reciprocity, mutual listening, and political courage. It also raises expectations that the United States may eventually consider similar structured dialogue with others, including ASEAN states, the African Union, and Latin American trading blocs.

China’s emphasis on “win-win cooperation” is not just a slogan. It is the foundation of its external economic posture. The Geneva agreement affirms this. By agreeing to remove 91 percent of tariffs and suspend key restrictions for three months, Beijing has shown that peace is always preferable to disruption and that even in a competitive environment, constructive outcomes are possible.

From a broader strategic standpoint, this moment represents an inflection point. The 90-day pause now offers space for both sides to reconsider their longer-term positions. The U.S. trade deficit with China remains large$263 billion in 2024 but that figure alone does not justify punitive policy. Trade imbalances are structural. They require careful coordination, not sweeping tariffs. China has indicated its willingness to address mutual concerns, including market access and industrial standards, but only within a framework of parity and legality.

It is therefore crucial that the United States uses this opportunity to move away from impulsive policy and return to institutional diplomacy. The Geneva agreement is a reminder of what is possible when major powers stop performing for domestic audiences and start listening to each other. Beijing has offered its vision: open consultation, respect for sovereignty, and inclusive global growth. The world now waits to see if Washington will meet that offer with seriousness. It is now the moment for the United States to match that wisdom, and in doing so, offer the world a little more certainty and a great deal more hope.