Dear Focus Reader,

Following two days of high-level negotiations in Geneva, the United States and China on Monday issued a joint statement announcing an agreement to ease trade tensions by significantly rolling back tariffs. Under the deal, the U.S. will reduce tariffs on Chinese imports from 145% to 30%, while China will cut its tariffs on American goods from 125% to 10%, both for an initial 90-day period.

The breakthrough marks the most substantial step toward de-escalation since the trade war began, signaling a renewed willingness on both sides to rebuild economic ties. U.S. stock markets surged on the news, with investors encouraged by the tariff reductions and China's commitment to easing non-tariff barriers such as regulatory hurdles and import restrictions. The two countries also agreed to establish and maintain a channel to discuss trade issues moving forward.

Both sides recognize "the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship," they said in the statement.

China also unveiled its 2025 National Security White Paper this week, marking updates to its security strategy amid a turbulent global landscape. The document introduces a comprehensive "holistic security" approach, extending beyond traditional military concerns to include economic stability, technology, public health, and social governance. Emphasizing the close link between national security and economic development, the paper stresses political control and technological self-reliance as key priorities.

While it portrays China as a stabilizing force in the Asia-Pacific, the white paper also reinforces Beijing's firm stance on sovereignty issues and casts external pressures, particularly from the U.S., as threats to national interests. This framework highlights China's ambition to assert itself as a responsible global actor while navigating rising regional tensions and global uncertainties.

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