The US and China are finally talking Why now

Beijing retaliated immediately and a tense stand-off ensued as the two countries heaped levies on each other. New US tariffs on Chinese imports stand at 145%, and some US exports to China face duties of 125%.

There have been weeks of stern, and sometimes fiery, rhetoric where each side sought to paint the other as the more desperate party.

And yet this weekend they will face each other over the negotiating table.

So why now?

Despite multiple rounds of tit-for-tat tariffs, both sides have been sending signals that they want to break the deadlock. Except it wasn't clear who would blink first.

"Neither side wants to appear to be backing down," said Stephen Olson, senior visiting fellow at Singapore's ISEAS-Yusof Ishak Institute and a former US trade negotiator.

"The talks are taking place now because both countries have judged that they can move forward without appearing to have caved in to the other side."

Still, China's foreign ministry spokesperson Lin Jian emphasised on Wednesday that "the talks are being held at the request of the US".

And the commerce ministry framed it as a favour to Washington, saying it was answering the "calls of US businesses and consumers".

The Trump administration, however, claims it's Chinese officials who "want to do business very much" because "their economy is collapsing".

"They said we initiated? Well, I think they ought to go back and study their files," Trump said at the White House on Wednesday.

While Chinese trade officials head to Geneva, Xi Jinping is in Moscow to meet Vladimir Putin

But as the talks drew closer, the president struck a more diplomatic note: "We can all play games. Who made the first call, who didn't make the - it doesn't matter," he told reporters on Thursday. "It only matters what happens in that room."

The timing is also key for Beijing because it's during Xi's visit to Moscow. He was a guest of honour on Friday at Moscow's Victory Day parade to commemorate the 80th anniversary of the World War Two victory over Nazi Germany.

Xi stood alongside leaders from across the Global South - a reminder to Trump's administration that China not only has other options for trade, but it is also presenting itself as an alternative global leader.

This allows Beijing to project strength even as it heads to the negotiating table.

The pressure is on

Trump insists that the tariffs will make America stronger, and Beijing has vowed to "fight till the end"- but the fact is the levies are hurting both countries.

Factory output in China has taken a hit, according to government data. Manufacturing activity in April dipped to the lowest level since December 2023. And a survey by news outlet Caixin this week showed that services activity has reached a seven-month low.

The BBC found that Chinese exporters have been reeling from the steep tariffs, with

"I think [China] realises that a deal is better than no deal," says Bert Hofman, a professor at the East Asian Institute in National University Singapore.

"So they've taken a pragmatic view and said, 'OK, well we need to get these talks going.'"

And so with the major May Day holiday in China over, officials in Beijing have decided the time is right to talk.

On the other side, the uncertainty caused by tariffs led to the US economy contracting for the first time in three years.

And industries that have long depended on Chinese-made goods are especially worried. A Los Angeles toy company ownerthat they were "looking at the total implosion of the supply chain".