CGTN: China-U.S. trade talks in London receive positive market reception
With the first meeting of the China-U.S. economic and trade consultation mechanism set to continue in London on Tuesday, CGTN publishes an article discussing the significance of the highly anticipated talks and the global expectations surrounding them. The article also highlights China's attitude and stance on the trade talks, stressing the importance of China-U.S. cooperation in achieving mutually beneficial outcomes.
BEIJING, June 11, 2025 /PRNewswire/ -- The first meeting of the China-U.S. economic and trade consultation mechanism is set to continue on Tuesday in London with a second day of talks.
The gathering of key officials from the world's two largest economies is widely seen as a crucial step in easing tensions between the two countries, sending a positive signal to the global economy.
The highly anticipated trade talks come just days after a phone call between Chinese President Xi Jinping and U.S. President Donald Trump. They are aimed at implementing the consensus reached by both leaders and continuing to foster dialogue and cooperation in economic and trade fields.
Chinese Vice Premier He Lifeng is leading the Chinese delegation in London, while U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are heading the U.S. team.
Severe economic repercussions
The London talks are a direct outcome of the Geneva discussions in May, when both sides agreed to pause the escalating tariffs and establish a consultation mechanism to continue negotiations.
The Geneva meeting featured the first face-to-face talks between senior officials from both nations since the U.S. imposed hefty tariffs on China in April, and China retaliated with robust countermeasures.
The tariff hikes have not only hurt the global supply chain, but also harmed the U.S. economy, driving up costs, reducing consumption and increasing the risk of economic recession.
A Harris Poll conducted for Bloomberg News in late May revealed that many Americans are tightening their belts, a recent survey by Bank of America showed that allocations to U.S. assets are at their lowest levels in nearly two decades, and multiple sources, including U.S. Bank, JP Morgan and the International Monetary Fund, have suggested a 40 percent chance of a U.S. recession.
Cooperation is the only way out
Given these concerning economic repercussions, Xi has stressed that dialogue and cooperation are the only correct choice for the two countries. He hailed the Geneva talks as an important step forward in resolving disputes and urged the two sides to make good use of the economic and trade consultation mechanism and seek win-win results in the spirit of equality and respect for each other's concerns.
The Chinese side is sincere about this, and at the same time has its principles, Xi said.
The positive market reactions mirrored Xi's remarks and reflected growing optimism about the easing of China-U.S. trade frictions. Following the leaders' phone talks, shipping demand surged, leading to a spike in freight rates, and U.S. stock indices saw substantial gains, with the S&P 500, Nasdaq and Dow Jones all experiencing significant increases.
Wu Zewei, a special researcher at Sushang Bank, said the London talks are expected to boost the prospects for bilateral cooperation.
He stated that though the negotiations in London will not be easy and require in-depth discussions, the Geneva talks have laid a strong foundation for cooperation and the recent phone call between the two heads of state has provided direction for future negotiations.
"The cooperation between China and the U.S. has significant potential. In the future, both countries can still achieve mutual benefit and win-win outcomes, fostering shared prosperity and creating a better life for their peoples," said Wu.