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A cargo ship is loading and unloading foreign trade containers at Qingdao Port in Qingdao City, Shandong Province, China on May 7, 2025.
US and China open talks to ease trade tensions
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with their Chinese counterparts in Geneva on Saturday in a bid to ease escalating trade tensions that have led to punishing tariffs of up to 145%. Ahead of the meetings, Trump said that he expects tariffs to come down.
The urgency of the meeting — coming just weeks after reciprocal tariffs took effect in April — suggests the Trump administration is eager to de-escalate as economic costs mount. China is scoping out whether Washington is really ready to negotiate, and is framing the talks as US-initiated so they can engage without appearing to be yielding to US pressure.
Trade impacts are already visible. Data from Beijing released Friday showed that China’s exports to the United States plunged 21% in April, compared to the same period last year. China also saw factory output shrink in April and is racing to secure new markets. Meanwhile American retailers warn of holiday shortages and rising prices.
Each side comes to the table with firm goals. Washington wants to shrink China’s trade surplus and curb practices it sees as unfair, including industrial subsidies, tech restrictions, and IP theft. Beijing also wants tariffs reduced — but not at the expense of overhauling its economic model.
This weekend’s discussion is expected to be exploratory, not revolutionary. Progress, Eurasia Group China expert Lauren Gloudeman says, would be if “the meeting yields any plans to meet again.”
The banking crisis, AI & Ukraine: Larry Summers weighs in
The recent spate of bank failures has caused significant turbulence in markets and left investors jittery across the globe, from Silicon Valley to Switzerland. But is this a sign of a systemic banking crisis or of a more fundamental flaw in capitalism? In an interview with Ian Bremmer on GZERO World, former US Treasury Secretary Larry Summers provides an in-depth analysis of the situation.
Summers is critical of the management of Silicon Valley Bank and the federal government's intervention, which failed to prevent the banking turmoil. He also expresses concerns about the real estate sector, particularly when it comes to office buildings, and corporate lending to mid-sized businesses.
The conversation also delves into the impact of artificial intelligence on the labor market, with Summers cautioning that AI will "bring about significant changes" that will “profoundly alter traditional hierarchies and ways of thinking,” which may threaten influential groups. It’s even probable, he tells Bremmer, that we’ll see “restrictionist and protectionist policies that limit our ability to benefit from these technologies or slow down [their development].”
Summers also proposes a contentious solution to rebuild Ukraine: seizing frozen Russian assets.
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Getty Images/Chip Somodevilla
Podcast: Larry Summers breaks down the banking crisis
Listen: On the GZERO World podcast, Ian Bremmer and former US Treasury Secretary Larry Summers discuss the recent bank failures that are disrupting global markets and worrying investors worldwide. They discuss whether the current situation constitutes a banking crisis and explore the role of inflation in contributing to the problems. As an inflation expert, Summers provides valuable insights and predictions on the duration of the financial turmoil.
Additionally, he warns of the significant changes that AI could bring to traditional hierarchies and proposes a controversial solution for rebuilding Ukraine: seizing frozen Russian assets.
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