In a development that underscores both global tension and strategic necessity, Chinese Vice Premier He Lifeng will meet U.S. Treasury Secretary Scott Bessent in Switzerland from May 9–12 to discuss bilateral “economic and trade affairs.” The meeting, announced via a post by the Chinese Embassy in Washington, comes amid escalating rhetoric from Beijing and growing strain on the global economy.
The full statement from China’s Ministry of Foreign Affairs is a masterclass in diplomatic theater—part invitation, part warning. While it confirms China’s willingness to enter discussions, it frames the U.S. as the sole aggressor, accusing the new administration of enforcing “illegal and unreasonable” unilateral tariff measures that disrupt not only U.S.-China relations but the broader international trade system.
China’s statement is rich with conditional language and overt ideological framing. It paints the U.S. as the provocateur and frames China as a reluctant but rational actor stepping up for the sake of global stability. Any agreement, it insists, must be rooted in “mutual respect, equal consultation, and mutual benefit.” It also features not-so-veiled warnings, stating, “We will fight resolutely if provoked,” and adding that “appeasement cannot bring peace, and compromise cannot earn respect.”
Based on full consideration of global expectations, China’s interests, and the appeals of the U.S. business community and consumers, #China has decided to agree to engage with the #US side. As China’s lead on China-U.S. economic and trade affairs, Vice Premier He Lifeng will hold… pic.twitter.com/2twZyYVYCk
— Chinese Embassy in US (@ChineseEmbinUS) May 7, 2025
In short: China’s agreeing to the meeting, but it’s bringing a chip on its shoulder—and a list of demands.
That China has agreed to direct talks at all is revealing. The nation is facing a growing storm at home and abroad—sluggish economic growth, collapsing real estate markets, increased capital flight, and rising international skepticism about its trade practices. The ongoing decoupling trend, driven in large part by the U.S. and its allies diversifying away from Chinese supply chains, has exposed Beijing’s economic vulnerability.
And the heat isn’t just economic. With American tariffs, export controls on strategic technologies, and growing U.S. investment restrictions, China is increasingly boxed in. By agreeing to talks, the Chinese Communist Party is signaling its awareness of mounting pressure—but without appearing weak.
For Treasury Secretary Scott Bessent—appointed by President Donald Trump as part of the administration’s effort to reshape U.S. trade and monetary strategy—this meeting is a critical opportunity. With the Trump administration actively rewriting trade policy, this engagement could serve as a recalibration point after years of tariff-fueled deadlock. However, the tone and structure of Beijing’s statement make it clear that no major concessions will come easily.
The Trump team is likely to push for renewed tariff leverage, deeper commitments on fair trade, and stronger enforcement mechanisms. Meanwhile, Beijing will seek relief from punitive measures and possibly test the new administration’s resolve by pressing for rollbacks without offering substantive reforms.
Though the optics of a meeting signal progress, the underlying conditions remain brittle. China’s warning that it won’t tolerate “coercive and blackmailing tactics” suggests that any hardline posture from Bessent could cause the talks to collapse. At the same time, a soft stance from the U.S. risks validating Beijing’s long-running strategy of performative cooperation while avoiding meaningful change.
The truth is that both sides are walking a tightrope—each under intense domestic and international scrutiny, and neither willing to blink first.
