Bessent will meet with China’s vice premier in Switzerland to break the ice on trade talks.

Reading these comments from Bessent you get the sense he is trying to lower our expectations. I don’t think that’s necessary. Anyone with half a brain knows this upcoming talk fest will achieve very, very little. Its just a beginning, that’s all.

• We’ve agreed to talk
• Then on Saturday and Sunday we will agree what we’re going to talk about
• My sense is this will be about de-escalation
• We’ve got to de-escalate before we can move forward

• We don’t want to decouple with China over textiles and things like that

• We do want to decouple over strategic industries

• Steel, semiconductors, medicines, we are going to build it here

• I think trade frictions can go down, Americans can get fairer deal

• Indonesia has come with very strong trade offers, willing to take off tariffs and non-tariff barriers

Earlier news:

• “Sources” say US’ Bessent and Greer to meet with China rep on Economic Matters this week
• Australian dollar higher on talk of Bessent/Greer/ China Vice Premier He Lifeng meeting

• China confirms Vice Premier He Lifeng to talk trade with Bessent this week

• China’ s Ministry of Commerce says is has “decided to agree to engage with the US”

This article was written by Eamonn Sheridan at www.forexlive.com.