Guan Tao: The China-US joint statement exceeded expectations, but the outlook still has uncertainties

On May 12, China and the United States issued a joint statement following the Geneva economic and trade talks. Although the Chinese side has repeatedly emphasized that the cancellation of all additional tariffs is a prerequisite for initiating Sino-U.S. economic and trade consultations, ultimately both sides reduced a cumulative 115% of tariffs, with the initiative resting with the U.S. This may be related to the U.S. being pressured to address the supply chain crisis caused by excessively high tariffs with China. In the short term, it will be difficult for the U.S. government to coordinate further pressure on China from other countries and regions. However, the prospects for Sino-U.S. economic and trade consultations remain highly uncertain, and balancing domestic economic work with international economic and trade struggles remains a long-term challenge. (Yicai)