China has joined the conversation

China’s defiant stance in the face of former U.S. President Donald Trump’s tariffs became one of the most emblematic images of the trade war.

Viral memes captured the moment—Trump shown waiting by the phone for a call from Beijing that never came. Meanwhile, China's Ministry of Foreign Affairs doubled down with its daily message: “We will not back down.” As Washington escalated both tariffs and rhetoric, Beijing responded with steely resistance.

Even as Chinese officials traveled to Switzerland for negotiations, state media took jabs—posting a cartoon of the U.S. Treasury Secretary pushing an empty shopping cart. To add to the tension, both sides offered differing accounts of who initiated the Geneva talks.

But after two days of what officials described as “robust” negotiations, a shift in tone emerged.

So, is this a turning point in U.S.-China relations? In some ways, yes. But in others, the hard-fought battle is far from over.

“We Want to Trade” – A Fragile Breakthrough in the US-China Standoff

"The consensus from both delegations this weekend is that neither side wants a decoupling," declared U.S. Treasury Secretary Scott Bessent at a press conference in Geneva, following two intense days of negotiations with Chinese officials.

"What had occurred with these very high tariffs was the equivalent of an embargo—and neither side wants that. We do want trade," he emphasized, signaling a shift from confrontation to cautious cooperation.

The deal struck in Geneva surprised many economists. “I thought tariffs would be cut to around 50%,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong. Instead, U.S. tariffs on Chinese imports will drop to 30%, while China will lower its tariffs on American goods to 10%.

"Obviously, this is very positive news for the economies of both countries, and for the global economy as a whole,” Zhang added. “It also helps ease investor fears over damage to global supply chains—at least in the short term.”

Former President Donald Trump celebrated the development on Truth Social, describing it as a “total reset negotiated in a friendly, but constructive, manner.”

Beijing, too, appears to be softening its tone—and not without reason. While China is the top trading partner for over 100 countries and capable of weathering some economic headwinds, the ongoing trade war is compounding existing pressures: a prolonged property crisis, persistent youth unemployment, and waning consumer confidence.

Factory output has begun to slow, with some companies reportedly laying off workers as production for U.S.-bound goods stalls. Trade routes have gone quiet, and the economic toll is mounting.

Data released Saturday showed a 0.1% drop in China’s consumer price index for April—the third consecutive monthly decline—highlighting weakening demand and increased price competition among struggling businesses.

This breakthrough may ease tensions for now, but the road to a stable trade relationship remains uncertain.

The Chinese Commerce Ministry on Monday described the recent agreement with the United States as a key step toward “resolving differences” and “laying the foundation for deeper cooperation”—a markedly conciliatory tone that would have seemed unlikely just weeks ago.

Both sides have now agreed to continue discussions through what Beijing calls an “economic and trade consultation mechanism.” But while former President Donald Trump hailed the outcome as a “total reset” in U.S.-China relations, Beijing’s response carried a subtle rebuke.

In its closing remarks, the Commerce Ministry urged the U.S. to “thoroughly correct the wrong practice of unilateral tariff increases,” signaling that China still holds Washington responsible for the trade dispute.

Chinese state media echoed this sentiment. In a pointed commentary, Xinhua News Agency warned that China’s “goodwill and patience has its limits” and would not be extended to those who “repress and blackmail us without pause.”

For Chinese leaders, the messaging is clear: they aim to project strength both domestically and globally. Beijing is framing its actions as rational, responsible, and in service of global economic stability—not concessions under pressure.

“This is a victory for conscience and rationality,” said Zhang Yun of Nanjing University’s School of International Relations, emphasizing that the talks established a crucial framework for ongoing dialogue.

Still, this breakthrough is only a temporary truce. The tariff pause lasts just 90 days, providing a narrow window for meaningful progress. While it may ease market fears and restore some trade flows, fundamental issues remain unresolved. The U.S. continues to run a significant trade deficit with China, and thornier topics—such as state subsidies, critical technologies, and geopolitical flashpoints like the Taiwan Strait—loom large.

The battle for a more equitable trade relationship hasn't ended. It has simply shifted—no longer fought through tariffs and supply chains, but across negotiating tables in Beijing and Washington.