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.
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.
