‘Total Reset’: US Announces Breakthrough China Trade Deal with ‘Substantial Progress’ in Geneva

Geneva, May 12, 2025 – In what officials have described as a "total reset" in economic relations, the United States and China announced a significant breakthrough in trade negotiations during high-level talks held in Geneva. The announcement marks a major turning point after years of strained trade ties and escalating tariffs between the world’s two largest economies.

US Trade Representative Katherine Tai, speaking at a joint press briefing, confirmed that the delegations had made "substantial progress" toward a comprehensive trade agreement. "Today’s breakthrough is not just about numbers and tariffs—it represents a fundamental shift in how our two nations engage economically," she said.

The deal reportedly covers tariff reductions, technology transfer protections, intellectual property rights enforcement, and expanded market access for American goods, especially in agriculture, manufacturing, and digital services. While specific details of the agreement are still under wraps pending formal ratification, negotiators from both sides hailed the talks as the most constructive in years.

Chinese Vice Minister of Commerce Wang Shouwen, leading the Chinese delegation, echoed similar optimism. “This is a step forward not just for China and the US, but for global trade stability,” he said, noting that both nations had agreed on a framework to monitor implementation and resolve future disputes through structured dialogue.

The Geneva discussions came after months of groundwork and confidence-building measures between Washington and Beijing. Experts view this as an outcome of increased diplomatic engagement following the sidelines meeting between US President Joe Biden and Chinese President Xi Jinping last year.

Global markets responded positively to the news. The Dow Jones, Shanghai Composite, and European markets saw upticks amid growing investor confidence in easing trade tensions.

Analysts suggest the "total reset" language signals a broader strategy by the Biden administration to recalibrate its China policy, balancing economic cooperation with strategic competition. It also comes at a time when both economies are navigating post-pandemic recovery and rising geopolitical challenges.

Though key challenges remain—such as data security, semiconductor access, and supply chain resilience—this agreement signals a renewed willingness to engage in dialogue and collaborative problem-solving.

Further rounds of negotiations are expected in Washington later this year to finalize and formalize the agreement.