U.S. Treasury Secretary Scott Bessent said Washington does not want to decouple from China, but wants "fair trade."

Officials say the U.S. and China will hold trade talks in Switzerland this week as the world's two largest economies try to remove tensions that lead to a de facto mutual embargo.

Since U.S. President Donald Trump has charged 145% tariffs on Chinese goods, it will be the first official interaction between Washington and Beijing, prompting China to retaliate by 125%.

Their office said in a statement Tuesday that U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will attend talks on the U.S. side.

China's foreign ministry said in a statement that he would represent Beijing's Chinese vice premier.

Businesses and investors have been waiting for signs of melting in the U.S.-China tensions over fears that a prolonged trade war could wreak havoc on the global economy.

The IMF last month reduced its global growth rate in 2025 from 3.3% to 2.8% due to Trump's trade Salvoes.

Economists are increasingly warning of the possibility of a recession in the U.S. economy this year, which JP Morgan Research lowered by 60%.

The U.S. economy narrowed by 0.3% in the first quarter (most Trump tariffs went into effect), the first decline since early 2022.

After the negotiations were announced, in an interview with Fox News, Best said that the two sides had a "common interest" in the talks because the current tariff levels were unsustainable.

"We don't want to break up. What we want is a fair deal," Becent told Fox News host Laura Ingraham.

Bessent said he hopes the initial negotiations focus on “downgrades” rather than “large trade deals.”

"We have to cancel the upgrade before we can move forward," he said.

China's Ministry of Commerce said on Wednesday that negotiations should be conducted on "a basis of mutual respect, equality, consultation and reciprocity."

"Just like China's words, 'listen to their words and observe their behavior'," a spokesperson for the ministry said.

"If the United States wants to resolve the issue through negotiation, it must acknowledge the serious negative impact of its unilateral tariff measures on itself and the world," the spokesman said, adding that the United States should "respect international economic and trade rules, as well as the fair and rational voices of various sectors" and "act rightly".