US and China to Issue Joint Statement, Marking New Development in Bilateral Relations

According to He Lifeng, the talks were fruitful and marked an important step towards resolving differences through equal dialogue and consultation. The two sides agreed to establish a mechanism for economic and trade consultations and will release a joint statement on May 12, outlining the outcomes of the talks. He Lifeng emphasized that the China-US economic and trade relationship is of great significance to both countries and has a significant impact on global economic stability and development. The release of a joint statement underscores the commitment of both nations to resolving their discrepancies through equal dialogue and negotiation, thereby deepening their cooperative relationship.

The talks were closely watched by the international community, and the agreement to establish a consultation mechanism is seen as a positive step towards resolving trade tensions between the two nations. The US and China have been engaged in a trade war since 2018, and the talks in Geneva were the first high-level trade negotiations between the two sides since the outbreak of the trade war. During the talks, the two sides discussed several key issues, including trade deficits and tariff problems. The US side stated that the talks made significant progress, and the two sides will finalize the details as soon as possible and issue a joint statement.

The talks achieved a major breakthrough, with China and the US reaching a consensus on establishing a trade consultation mechanism. Chinese Vice Premier He Lifeng announced that the two sides had reached an agreement on this mechanism, while US officials described the talks as "very productive" and said that the agreement's details would be released on Monday. The US aims to reduce its trade deficit with China, which stands at $295 billion, and to encourage China to abandon its "state-led economic model" and boost domestic consumption, thereby achieving global economic rebalancing.

However, experts warn that there is still significant uncertainty surrounding the normalization of trade relations between the US and China. The current high tariffs are detrimental to both countries, and reducing them will require sensitive political reforms in China. The joint statement is seen as a positive sign for trade and financial markets, but the road to normalizing trade relations between the two countries remains long and uncertain.

The upcoming release of a joint statement heralds a significant improvement in bilateral relations. The two nations are expected to strengthen their cooperation in the economic and trade sectors, which in turn will drive global economic stability and growth. This development has already ignited optimism in the financial markets, as evidenced by the surge in U.S. stock futures. The Dow, S&P 500, and Nasdaq futures all opened more than 1% higher, with the Nasdaq leading the way with a 1.5% gain. The news has also had a notable impact on commodities, with gold prices experiencing a significant drop of nearly 2%. As investors and analysts alike await the details of the joint statement, there is a palpable sense of hope that this breakthrough will pave the way for a new era of economic cooperation and growth. The improvement in U.S.-China relations is poised to have far-reaching implications, not only for the two countries but also for the global economy, as it could help mitigate trade tensions and foster a more stable and predictable business environment.