US-China trade talks seen as politically symbolic, but is outcome a real ‘deal’?

Landmark China-US talks at the weekend likely carry economic and political significance on both sides while kick-starting a long process toward substantive deals that should address tariffs and other trade barriers, according to analysts.

The apparent upbeat move in the Swiss city of Geneva stands to give both powers interim political relief at home without appearing weak on the trade war battlefront, they added.

Chinese and US negotiators agreed during the talks – their first formal encounter since tariffs skyrocketed in early April as part of President Donald Trump’s trade war – to establish a “trade consultation mechanism”, Vice-Premier He Lifeng told reporters, while the White House released a statement describing the “China trade deal” and cited Treasury Secretary Scott Bessent’s comment of “substantial progress”.

Matteo Giovannini, a non-resident associate fellow at the Centre for China and Globalisation, said: “The US side is under political pressure to show wins.”

“China, on the other hand, sees negotiations not as a singular outcome but as a strategic process to manage bilateral competition, economic resilience, and long-term development goals,” he explained, noting that Beijing’s behaviour suggests a game plan rooted in strategic patience and economic self-preservation.

“Through resilience-building, China aims to insulate the domestic economy from external shocks while selectively engaging global markets,” he added.

South China Morning Post