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Countries finally talk, but why now?

Laura Bicker

Chinese correspondent

Watch: We and China are ready to talk to the tariffs – who first blinks?

US-Chow A trading war may be deniedWith the two largest economies in the world to start negotiations in Switzerland.

Peak Officials on both sides will meet on Saturday In the first high -level meeting after US President Donald Trump got to China.

Beijing avenged immediately and began a tense confrontation when both countries inflicted compassion for each other. New US import tariffs make up 145%and some US exports to China threaten 125%.

There were weeks of harsh and sometimes fiery, rhetoric, where each side sought to paint the other as a more desperate party.

And yet this weekend, they will face each other at the negotiating table.

So why now?

Conservation of face

Despite the many rounds of tit, both sides sent the signals they wanted to break the dead end. Except that it was not clear who flashed first.

“None of the parties wants to retreat,” said Stephen Olson, a senior researcher at the Izo-Jusof Singapore Institute and a former US trading participant.

“The negotiations are going on now because both countries believe they can move forward without giving up to the other side.”

However, Chinese Foreign Ministry press secretary Lin Jian stressed that “negotiations are held at the request of the United States.”

And the Ministry of Commerce has issued this as a commitment to Washington, saying that it responded to “calls of US enterprises and consumers”.

However, the Trump administration claims that Chinese officials “want to do business” because “their economy is destroyed”.

“They said we initiated? Well, I think they should return and study their files,” Trump said in the White House on Wednesday.

Getty Images Xi Jinping in a black coat and light -blue tie, walking in front of a number of Russian soldiers wearing bayonetsGets the image

While Chinese trade officials go to Geneva, Xi Jinping is in Moscow to meet Vladimir Putin

But, as the conversations approached, the president made a more diplomatic note: “We can play games. Who made the first call that didn’t make it matter,” he told reporters on Thursday. “It only matters what is happening in this room.”

The terms are also key to Beijing because it is during the SI visit to Moscow. On Friday, he was an honorary guest at the Moscow Victory Day parade to celebrate the 80th anniversary of World War II victory over Nazi Germany.

Si was standing next to leaders from the entire South – a reminder of the Trump administration that there are not only other options in China, but also present themselves as an alternative global leader.

This allows Beijing to design strength, even if it goes to the negotiating table.

The pressure continues

Trump insists that the tariffs will make America stronger, and Beijing promised to “fight to the end”- but the fact is that the fees hurt both countries.

According to state data, the factory in China has taken a blow. Production activity in April dropped to the lowest level since December 2023. This week, the News Outlet Caixin poll showed that the service has reached a seven -month minimum.

BBC found that Chinese exporters feel from steep tariffs, with Stock accumulated in the composition. Even if they apply the call and look for markets outside the US.

“I think (China) understands that the deal is better than not a deal,” says Bert Hoffman, Professor of the Eastern Asian National University in Singapore.

“So they took a pragmatic look and said,” Well, well, that these negotiations continue. “

And so, when China in China, the officials in Beijing decided that it was time to talk.

On the other hand, the uncertainty caused by tariffs led to the US economy for the first time in three years.

And the industries, which have long depended on the goods of Chinese production, are especially worried. Owner of a toy company in Los -Angeles said BBC What they “looked at the complete implazia of the supply chain”.

BBC/Xiqing Wang man with a white shirt and blue jeans wearing a black backpack passes down the corridor in a mall, surrounded by pluses from toys shopsBBC/Xiqing Wang

Toys for sale in Chinese Yiwu, the world’s largest wholesale market – China sold toys in US $ 10 billion last year

Trump himself acknowledged that US consumers will feel the sting.

American children can “have two dolls instead of 30 dolls,” he said at the Cabinet meeting this month, “and perhaps two dolls will cost a couple of bucks more than usual.”

Trump’s ratings also fell in fear of inflation and possible recession, and more than 60% of Americans said he focused too much on the tariffs.

“Both countries feel pressure to provide a little assurance in more and more nerve markets, enterprises and internal constituencies,” says Mr. Olson.

“A couple of days of meetings in Geneva will serve this purpose.”

What will happen next?

While the negotiations were met with optimism, the transaction may take some time to materialize.

Mr. Hoffman will mostly be about a “touching base”, adding that it may look like “sharing positions”, and if everything goes well, “the agenda (it will) are set for future negotiations.”

Negotiations are expected to take months, as well as what happened during Trump’s first term.

After almost two years of tariffs on Tat-TAT, the US and China signed the “stage first” in early 2020 to suspend or reduce some fees. Already then it didn’t include Trouble with the sparkleFor example, subsidies to Chinese government industries for key industries or terms for canceling the rest of the tariffs.

In fact, many of them remained on the spot through Joe Biden’s presidency, and Trump’s latest tariffs are added to those senior levies.

G -n Olson said it may appear, “this is the” stage of the first transaction on steroids “, that is, it will go beyond the previous transaction and try to turn to flashpoints. There are many, from Illegal trade fentanyl who Washington wants China hacked tougher About Beijing’s relations with Moscow.

But all this is far along the line, experts warn.

“System friction, which will not decide in the US and China soon,” adds Mr. Olson.

“Geneva will only produce anadine statements about” Frank dialogues “and the desire to continue to talk.”

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