High-level trade negotiations between the United States and China are set to begin this week in Switzerland. Both nations are attempting to de-escalate an intensifying trade war that has rattled global markets and raised concerns about a global economic downturn.

Chinese Vice Premier He Lifeng will lead Beijing’s delegation during the talks from May 9 to 12. Representing the United States will be Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. These talks mark the first formal dialogue between the two economic superpowers since President Donald Trump returned to office and implemented sweeping tariffs on Chinese imports, some as high as 145%. In retaliation, China has imposed tariffs of up to 125% on American goods.

The tariffs have created significant uncertainty for global businesses and investors. Financial markets in China, Hong Kong, and the U.S. have shown mixed reactions, buoyed only slightly by hopes for diplomatic progress and recent economic support measures from Beijing. Meanwhile, the International Monetary Fund recently downgraded its 2025 global growth forecast from 3.3% to 2.8%, citing the worsening trade conflict.

In interviews leading up to the talks, Secretary Bessent emphasized the goal of “de-escalation rather than a big trade deal,” adding that both sides share an interest in easing tensions. “We don’t want to decouple. What we want is fair trade,” he told Fox News.

China’s Ministry of Commerce echoed a cautious willingness to negotiate, stressing the need for “mutual respect, equality, consultation, and mutual benefit.” A spokesperson added that the U.S. must “face up to the serious negative impact of unilateral tariff measures” and correct its “wrongful actions” for any meaningful progress to be made.

Trade experts remain skeptical about a quick resolution. Deborah Elms of the Hinrich Foundation and Henry Gao of Singapore Management University warned that the negotiations could drag on for months, comparing the process to the lengthy 2018 trade standoff.

With the U.S. economy already shrinking 0.3% in Q1of 2025 prior to the full effect of the new tariffs, there is growing pressure on both sides to find a path toward economic stability. While expectations for this week’s talks are modest, officials and observers agree that re-engagement is a necessary first step.