It is good news that China and the United States held high-level economic and trade discussions in Geneva on May 10–11, 2025. This undoubtedly marks a significant step forward in easing trade tensions between the world's two superpowers. In terms of the scope of these discussions on bilateral and international trade, we can highlight tariff reductions and the establishment of a follow-up dialogue mechanism, as well as their impact on the global economy.
125% to 10%, and the United States reduced its tariffs on Chinese products from 145% to 30%. These measures, set to take effect on May 14, 2025, for an initial 90-day period, send a positive signal for global trade. Furthermore, both countries concluded their discussions by establishing a new consultation framework to continue trade negotiations. This mechanism will be led by He Lifeng (Chinese Vice Premier), Scott Bessent (U.S. Secretary of the Treasury), and Jamieson Greer (U.S. Trade Representative)China: The Shanghai Composite closed up +2.4%, the Hang Seng surged +3.34%, and the Shenzhen Component rose +2.7%United States: The S&P 500 climbed +1.8%, the Dow Jones gained +2.1%, and the Nasdaq advanced +1.5%Europe: The CAC 40 in Paris increased by +1.4%, and the DAX in Frankfurt rose +1.62%Oil Pricesde-escalation in the trade war that has disrupted bilateral exchanges for years. They could pave the way for a more comprehensive agreement, reducing economic tensions and facilitating international trade. They demonstrate both countries' commitment to preserving global economic stability, despite their differencesSino-African cooperationcommodity exports- Lower tariffs between the U.S. and China may reduce disruptions in African markets, particularly for Chinese manufactured goods and African-exported resources.
- If global economic conditions become more predictable, China may accelerate its investments in Africa, especially in infrastructure and industry.
- Chinese companies may expand their partnerships in Africa in a more favorable business climate.
- If China needs to reorient its trade relations, it may strengthen exchanges with Africa to diversify its markets in response to potential future U.S. restrictions.
FOCAC (Forum on China-Africa Cooperation)enhance its own economic presence in Africastimulating trade and investment opportunitiesfostering international cooperation that respects Africa's economic sovereigntyBeijing-Washington negotiations indirectly yet clearly impact Africaglobal cooperation and China’s role in international geopoliticsmore predictable economic climateindex surgesserve as a model for other international trade negotiationsbalanced cooperationnegotiate on equal termsstrengthen alliances with other regions, particularly Africa, Latin America, and Eastern Europe—enhancing its geopolitical influencepromote a more inclusive economic governance model, particularly through platforms like BRICS and WTOactive engagement in resolving trade conflicts could further establish China as an international mediatorthese negotiations will impact the rebalancing of global economic relations, while cementing China’s position as a key player in international trade and diplomacy