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US, China officials to resume talks over trade tensions

US, China officials to resume talks over trade tensions

West Australian10-05-2025
Top United States and Chinese officials have wrapped up the first day of talks in Switzerland aimed at defusing trade tensions and plan to resume negotiations on Sunday, a source close to the discussions says.
Chinese Vice Premier He Lifeng met for about eight hours with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer in Geneva in their first face-to-face meeting since the world's two largest economies heaped tariffs well above 100 per cent on each other's goods.
Neither side made any statements about the substance of the discussions nor signalled any progress towards reducing crushing tariffs as meetings at the residence of Switzerland's ambassador to the United Nations concluded about 8pm local time.
Bessent, Greer and He were meeting in Geneva after weeks of growing tensions prompted by US President Donald Trump's tariff blitz starting in February and retaliation from China that has brought nearly $US600 billion ($A935 billion) in annual bilateral trade to a virtual standstill.
The trade dispute, combined with Trump's decision last month to impose duties on dozens of other countries, has disrupted supply chains, unsettled financial markets and stoked fears of a sharp global downturn.
The location of the talks in the Swiss diplomatic hub was never made public.
However, witnesses saw both delegations returning after a lunch break to the gated UN ambassador's building, the 18th-century "Villa Saladin," which has its own private park overlooking Lake Geneva in the leafy suburb of Cologny.
Earlier, US officials including Bessent and Greer smiled as they left their hotel on the way to the talks, wearing red ties and US flags on their lapels.
At the same time, Mercedes vans with tinted windows were seen leaving a hotel where the Chinese delegation was staying on the lakeside as runners preparing for a weekend marathon warmed up in the sunshine.
The US is seeking to reduce its $US295 billion goods trade deficit with China and to persuade Chinese officials to renounce what the United States says is a mercantilist economic model and contribute more to global consumption, a shift that would require politically sensitive domestic reforms.
Chinese authorities have pushed back against what they see as external interference.
They want the United States to lower tariffs, clarify what it wants China to buy more of and treat it as an equal on the world stage.
China's official Xinhua News Agency said in a commentary on Saturday that the United States' "reckless abuse of tariffs" had destabilised the global economic order but added that the negotiations represented "a positive and necessary step to resolve disagreements and avert further escalation".
"Whether the road ahead involves negotiation or confrontation, one thing is clear: China's determination to safeguard its development interests is unshakable and its stance on maintaining the global economic and trade order remains unwavering," Xinhua said.
With distrust running high, both sides have been keen not to appear weak and economic analysts have low expectations of a breakthrough.
Trump said on Friday that an 80 per cent tariff on Chinese goods "seems right," suggesting for the first time a specific alternative to the 145 per cent levies he has imposed on Chinese imports.
He has suggested the discussions were initiated by China.
Officials in Beijing said the United States requested the discussions and that China's policy of opposing US tariffs had not changed.
China could be looking for the same 90-day waiver on tariffs that the US has given other countries as negotiations take place while any kind of tariff reduction and follow-up talks would be seen as positive by investors.
Swiss Economy Minister Guy Parmelin met both parties in Geneva on Friday and said the fact that the talks were taking place was already a success.
"If a road map can emerge and they decide to continue discussions, that will lower the tensions," he told reporters on Friday, saying talks could continue into Sunday or even Monday.
Switzerland helped to broker the meeting during recent visits by Swiss politicians to China and the United States.
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This is also reflected in assertions by some key MAGA supporters, such as the strategist Steve Bannon, Congresswoman Margorie Taylor Greene and media personality Tucker Carlson, as well as some far-right podcasters. They have questioned America's support of Israel and, in some cases, called for an end to American aid to the country. Trump is a transactional leader and could be amenable to pressure from his base and outside allies. An oil embargo on Israel and its supporters is another means of pressure. Earlier this year, Israel granted exploration licenses for natural gas deposits off its coast to a consortium of oil companies, including British Petroleum (BP) and Azerbaijan's SOCAR. Israel imports nearly three-quarters of its crude oil from three countries: Azerbaijan, Kazakhstan and Gabon. It relies on this crude oil and refined petroleum to fuel its fighter jets, tanks and bulldozers. 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More could come before the UN General Assembly meeting in September, too. These Western leaders have used strong words to push for a two-state solution to the Israeli-Palestinian conflict. As Australian Foreign Minister Penny Wong said when Australia pledged to recognise Palestine: There is a risk there will be no Palestine left to recognise if the international community don't move to create that pathway to a two-state solution. Recognition of a Palestinian state sends a strong message of the world's revulsion to the Netanyahu government's actions in Gaza. However, it is unlikely to make much of a difference on the ground without Israel and the United States agreeing to move forward on a two-state solution. So, how can Western states give teeth to their recent pledges to recognise a Palestinian state? What kind of pressure would actually work? Israel is by no means self-sufficient. It is very much dependent on the US for its defence capability and economic and financial wellbeing, as well as military supplies coming directly and indirectly from other Western countries. Germany has now taken the lead in this respect by suspending military exports to Israel over its decision to expand the war. Slovenia also banned all weapons trade with Israel this month. Other Western nations should be more transparent about the exports of specific parts to a global supply chain that Israel can access, such as those for F-35 jets, and be willing to block these. In addition, Spanish Prime Minister Pedro Sanchez has advocated for the European Union to suspend its trade deal with Israel for breaching an article "on respect for human rights and democratic principles". Suspending the deal in full would require unanimous agreement among all 27 EU members. A partial suspension is possible, however, if just 15 EU members agree. Western states could also put pressure on US President Donald Trump to persuade Israel that its future peace and prosperity depends on a two-state solution. The US has long supported a two-state solution as a core policy. However, the US ambassador to Israel, Mike Huckabee, recently suggested this might be changing. Trump has not endorsed a two-state solution nor a new US position on it. Given Netanyahu's long-held opposition to a two-state solution, this might be a tough sell. However, Trump could be compelled to take a firm stand on the issue, given American public opinion is gradually shifting against Israel. This is also reflected in assertions by some key MAGA supporters, such as the strategist Steve Bannon, Congresswoman Margorie Taylor Greene and media personality Tucker Carlson, as well as some far-right podcasters. They have questioned America's support of Israel and, in some cases, called for an end to American aid to the country. Trump is a transactional leader and could be amenable to pressure from his base and outside allies. An oil embargo on Israel and its supporters is another means of pressure. Earlier this year, Israel granted exploration licenses for natural gas deposits off its coast to a consortium of oil companies, including British Petroleum (BP) and Azerbaijan's SOCAR. Israel imports nearly three-quarters of its crude oil from three countries: Azerbaijan, Kazakhstan and Gabon. It relies on this crude oil and refined petroleum to fuel its fighter jets, tanks and bulldozers. Gabon is a member of the Organisation of the Petroleum Exporting Countries (OPEC); Azerbaijan and Kazakhstan are part of an expanded group called OPEC+. The Organisation of Arab Petroleum Exporting Countries (part of OPEC) implemented such an embargo against the United States and other countries in 1973 in retaliation for supporting Israel in the 1973 Arab-Israeli War and its seizure of Egyptian and Syrian land afterwards. Israel itself was cut off, too. It proved effective. The embargo prompted Henry Kissinger, then-national security advisor in the Nixon administration, to engage in "shuttle diplomacy" between Israel, Egypt and Syria. This led to force disengagement agreements in early 1974, and the lifting of the oil embargo. It also contributed to the diplomatic path that eventually resulted in the Camp David Accords between Israel and Egypt, with US President Jimmy Carter's mediation, in 1978. Under the accords, Israel withdrew from the Sinai Peninsula in return for a peace treaty with Egypt. A framework for Palestinian autonomy and self-government was also agreed to. However, subsequent talks on the path forward broke down for a number of reasons - among them Israel's refusal to make concessions on key issues - much to Carter's fury. Israel also refused to withdraw from Syria's Golan Heights, which it later annexed. A final option is the threat of suspending Israel from the United Nations. This has been advocated by the UN special rapporteur on human rights in the Palestinian territories, Francisca Albanese, and Malaysian Prime Minister Anwar Ibrahim. Suspending a member from the UN is not easy. It requires the consent of the General Assembly, as well as the recommendation of the Security Council, which counts Israel's steadfast ally, the US, as a member. Nonetheless, the forthcoming UN General Assembly meeting in September would be a suitable time to heighten this threat. The assembly's resolutions are not binding, but it is still a tool for the international community to apply pressure. In the 1970s, for example, the General Assembly moved to suspend South Africa's membership over its apartheid system of government. Although the Security Council blocked South Africa's expulsion, it remained suspended in the General Assembly until 1994. These measures are now needed to maximise the pressure on Netanyahu's leadership to relent on a two-state solution. Whether Western countries have the political will to go beyond mere recognition and implement them is another question. Italian Defence Minister Guido Crosetto said recently the Israeli cabinet has "lost its reason and humanity" in Gaza, reflecting a widespread view around the world. Israeli Prime Minister Benjamin Netanyahu's staunch defiance over the Gaza war has led many Western states to recognise the state of Palestine in recent weeks. More could come before the UN General Assembly meeting in September, too. These Western leaders have used strong words to push for a two-state solution to the Israeli-Palestinian conflict. As Australian Foreign Minister Penny Wong said when Australia pledged to recognise Palestine: There is a risk there will be no Palestine left to recognise if the international community don't move to create that pathway to a two-state solution. Recognition of a Palestinian state sends a strong message of the world's revulsion to the Netanyahu government's actions in Gaza. However, it is unlikely to make much of a difference on the ground without Israel and the United States agreeing to move forward on a two-state solution. So, how can Western states give teeth to their recent pledges to recognise a Palestinian state? What kind of pressure would actually work? Israel is by no means self-sufficient. It is very much dependent on the US for its defence capability and economic and financial wellbeing, as well as military supplies coming directly and indirectly from other Western countries. Germany has now taken the lead in this respect by suspending military exports to Israel over its decision to expand the war. Slovenia also banned all weapons trade with Israel this month. Other Western nations should be more transparent about the exports of specific parts to a global supply chain that Israel can access, such as those for F-35 jets, and be willing to block these. In addition, Spanish Prime Minister Pedro Sanchez has advocated for the European Union to suspend its trade deal with Israel for breaching an article "on respect for human rights and democratic principles". Suspending the deal in full would require unanimous agreement among all 27 EU members. A partial suspension is possible, however, if just 15 EU members agree. Western states could also put pressure on US President Donald Trump to persuade Israel that its future peace and prosperity depends on a two-state solution. The US has long supported a two-state solution as a core policy. However, the US ambassador to Israel, Mike Huckabee, recently suggested this might be changing. Trump has not endorsed a two-state solution nor a new US position on it. Given Netanyahu's long-held opposition to a two-state solution, this might be a tough sell. However, Trump could be compelled to take a firm stand on the issue, given American public opinion is gradually shifting against Israel. This is also reflected in assertions by some key MAGA supporters, such as the strategist Steve Bannon, Congresswoman Margorie Taylor Greene and media personality Tucker Carlson, as well as some far-right podcasters. They have questioned America's support of Israel and, in some cases, called for an end to American aid to the country. Trump is a transactional leader and could be amenable to pressure from his base and outside allies. An oil embargo on Israel and its supporters is another means of pressure. Earlier this year, Israel granted exploration licenses for natural gas deposits off its coast to a consortium of oil companies, including British Petroleum (BP) and Azerbaijan's SOCAR. Israel imports nearly three-quarters of its crude oil from three countries: Azerbaijan, Kazakhstan and Gabon. It relies on this crude oil and refined petroleum to fuel its fighter jets, tanks and bulldozers. Gabon is a member of the Organisation of the Petroleum Exporting Countries (OPEC); Azerbaijan and Kazakhstan are part of an expanded group called OPEC+. The Organisation of Arab Petroleum Exporting Countries (part of OPEC) implemented such an embargo against the United States and other countries in 1973 in retaliation for supporting Israel in the 1973 Arab-Israeli War and its seizure of Egyptian and Syrian land afterwards. Israel itself was cut off, too. It proved effective. The embargo prompted Henry Kissinger, then-national security advisor in the Nixon administration, to engage in "shuttle diplomacy" between Israel, Egypt and Syria. This led to force disengagement agreements in early 1974, and the lifting of the oil embargo. It also contributed to the diplomatic path that eventually resulted in the Camp David Accords between Israel and Egypt, with US President Jimmy Carter's mediation, in 1978. Under the accords, Israel withdrew from the Sinai Peninsula in return for a peace treaty with Egypt. A framework for Palestinian autonomy and self-government was also agreed to. However, subsequent talks on the path forward broke down for a number of reasons - among them Israel's refusal to make concessions on key issues - much to Carter's fury. Israel also refused to withdraw from Syria's Golan Heights, which it later annexed. A final option is the threat of suspending Israel from the United Nations. This has been advocated by the UN special rapporteur on human rights in the Palestinian territories, Francisca Albanese, and Malaysian Prime Minister Anwar Ibrahim. Suspending a member from the UN is not easy. It requires the consent of the General Assembly, as well as the recommendation of the Security Council, which counts Israel's steadfast ally, the US, as a member. Nonetheless, the forthcoming UN General Assembly meeting in September would be a suitable time to heighten this threat. The assembly's resolutions are not binding, but it is still a tool for the international community to apply pressure. In the 1970s, for example, the General Assembly moved to suspend South Africa's membership over its apartheid system of government. Although the Security Council blocked South Africa's expulsion, it remained suspended in the General Assembly until 1994. These measures are now needed to maximise the pressure on Netanyahu's leadership to relent on a two-state solution. Whether Western countries have the political will to go beyond mere recognition and implement them is another question. Italian Defence Minister Guido Crosetto said recently the Israeli cabinet has "lost its reason and humanity" in Gaza, reflecting a widespread view around the world. Israeli Prime Minister Benjamin Netanyahu's staunch defiance over the Gaza war has led many Western states to recognise the state of Palestine in recent weeks. More could come before the UN General Assembly meeting in September, too. These Western leaders have used strong words to push for a two-state solution to the Israeli-Palestinian conflict. As Australian Foreign Minister Penny Wong said when Australia pledged to recognise Palestine: There is a risk there will be no Palestine left to recognise if the international community don't move to create that pathway to a two-state solution. Recognition of a Palestinian state sends a strong message of the world's revulsion to the Netanyahu government's actions in Gaza. However, it is unlikely to make much of a difference on the ground without Israel and the United States agreeing to move forward on a two-state solution. So, how can Western states give teeth to their recent pledges to recognise a Palestinian state? What kind of pressure would actually work? Israel is by no means self-sufficient. It is very much dependent on the US for its defence capability and economic and financial wellbeing, as well as military supplies coming directly and indirectly from other Western countries. Germany has now taken the lead in this respect by suspending military exports to Israel over its decision to expand the war. Slovenia also banned all weapons trade with Israel this month. Other Western nations should be more transparent about the exports of specific parts to a global supply chain that Israel can access, such as those for F-35 jets, and be willing to block these. In addition, Spanish Prime Minister Pedro Sanchez has advocated for the European Union to suspend its trade deal with Israel for breaching an article "on respect for human rights and democratic principles". Suspending the deal in full would require unanimous agreement among all 27 EU members. A partial suspension is possible, however, if just 15 EU members agree. Western states could also put pressure on US President Donald Trump to persuade Israel that its future peace and prosperity depends on a two-state solution. The US has long supported a two-state solution as a core policy. However, the US ambassador to Israel, Mike Huckabee, recently suggested this might be changing. Trump has not endorsed a two-state solution nor a new US position on it. Given Netanyahu's long-held opposition to a two-state solution, this might be a tough sell. However, Trump could be compelled to take a firm stand on the issue, given American public opinion is gradually shifting against Israel. This is also reflected in assertions by some key MAGA supporters, such as the strategist Steve Bannon, Congresswoman Margorie Taylor Greene and media personality Tucker Carlson, as well as some far-right podcasters. They have questioned America's support of Israel and, in some cases, called for an end to American aid to the country. Trump is a transactional leader and could be amenable to pressure from his base and outside allies. An oil embargo on Israel and its supporters is another means of pressure. Earlier this year, Israel granted exploration licenses for natural gas deposits off its coast to a consortium of oil companies, including British Petroleum (BP) and Azerbaijan's SOCAR. Israel imports nearly three-quarters of its crude oil from three countries: Azerbaijan, Kazakhstan and Gabon. It relies on this crude oil and refined petroleum to fuel its fighter jets, tanks and bulldozers. Gabon is a member of the Organisation of the Petroleum Exporting Countries (OPEC); Azerbaijan and Kazakhstan are part of an expanded group called OPEC+. The Organisation of Arab Petroleum Exporting Countries (part of OPEC) implemented such an embargo against the United States and other countries in 1973 in retaliation for supporting Israel in the 1973 Arab-Israeli War and its seizure of Egyptian and Syrian land afterwards. Israel itself was cut off, too. It proved effective. The embargo prompted Henry Kissinger, then-national security advisor in the Nixon administration, to engage in "shuttle diplomacy" between Israel, Egypt and Syria. This led to force disengagement agreements in early 1974, and the lifting of the oil embargo. It also contributed to the diplomatic path that eventually resulted in the Camp David Accords between Israel and Egypt, with US President Jimmy Carter's mediation, in 1978. Under the accords, Israel withdrew from the Sinai Peninsula in return for a peace treaty with Egypt. A framework for Palestinian autonomy and self-government was also agreed to. However, subsequent talks on the path forward broke down for a number of reasons - among them Israel's refusal to make concessions on key issues - much to Carter's fury. Israel also refused to withdraw from Syria's Golan Heights, which it later annexed. A final option is the threat of suspending Israel from the United Nations. This has been advocated by the UN special rapporteur on human rights in the Palestinian territories, Francisca Albanese, and Malaysian Prime Minister Anwar Ibrahim. Suspending a member from the UN is not easy. It requires the consent of the General Assembly, as well as the recommendation of the Security Council, which counts Israel's steadfast ally, the US, as a member. Nonetheless, the forthcoming UN General Assembly meeting in September would be a suitable time to heighten this threat. The assembly's resolutions are not binding, but it is still a tool for the international community to apply pressure. In the 1970s, for example, the General Assembly moved to suspend South Africa's membership over its apartheid system of government. Although the Security Council blocked South Africa's expulsion, it remained suspended in the General Assembly until 1994. These measures are now needed to maximise the pressure on Netanyahu's leadership to relent on a two-state solution. Whether Western countries have the political will to go beyond mere recognition and implement them is another question.

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