US and China to engage in initial trade discussions in Geneva on Saturday.

U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will convene with China’s economic leader He Lifeng in Switzerland this weekend for discussions that might represent the initial move toward settling a trade conflict affecting the global economy.

Reports about the meeting initially revealed by Washington late Tuesday boosted U.S. equity index futures, and stock markets in China and Hong Kong mirrored this trend during Asian trading on Wednesday.

The discussions follow weeks of rising tensions that have caused tariffs on imported goods between the two largest economies to exceed 100%, which Bessent on Tuesday referred to as akin to a trade embargo.

The stalemate, coupled with U.S. President Donald Trump’s choice last month to impose extensive tariffs on numerous other nations, has disrupted supply chains, unsettled financial markets, and heightened concerns about a significant decline in global growth.

According to two sources familiar with the planning, the negotiating teams meeting in Geneva are anticipated to talk about cuts to the overall tariffs. One source indicated that the two sides are anticipated to talk about tariffs on particular goods, U.S. export regulations, and Trump’s choice to eliminate de minimis exemptions for low-value imports.

China’s State Council did not immediately reply to a faxed request for comment.

“My sense is this will be about de-escalation,” Bessent told Fox News after the announcement. “We’ve got to de-escalate before we can move forward.”

A Chinese commerce ministry spokesperson later confirmed that China had agreed to meet the U.S. envoys.

“On the basis of fully considering global expectations, China’s interests, and the appeals of U.S. industry and consumers, China has decided to re-engage the U.S.,” the Chinese statement said.

“There is an old Chinese saying: Listen to what is said, and watch what is done. … If (the U.S.) says one thing but then does another, or attempts to use talks as a cover to continue coercion and blackmail, China will never agree.”

This is the first meeting between senior Chinese and U.S. officials since U.S. Senator Steve Daines met Premier Li Qiang in Beijing in March.

Beijing has largely embraced an aggressive tone as tensions with Washington have escalated, consistently stating it would not participate in discussions unless the tariffs were retracted. Indicating a shift in approach, China’s commerce ministry announced on Friday that it was “assessing” a proposal from Washington to engage in discussions.

The stakes for China’s economy are significant, as its large manufacturing sector is already suffering the consequences of the tariffs. Numerous analysts have lowered their economic growth predictions for the Asian powerhouse in 2025, and investment bank Nomura has cautioned that the trade conflict could result in China losing as many as 16 million jobs.

On Wednesday, China’s central bank revealed new monetary stimulus measures, indicating interest rate reductions and a liquidity boost for the banking system to mitigate the economic effects of the tariffs.

Analysts described the move as measured and tactical.

“There’s almost certainly also an element of signaling to the U.S. government ahead of the upcoming meeting,” said Christopher Beddor, deputy China research director at Gavekal Dragonomics.

“The message is that Chinese officials are not panicked or scrambling to shore up economic growth, and they’re not going to be negotiating from a position of weakness.”