STOCKHOLM: US and Chinese officials concluded two days of trade talks in Stockholm with an agreement to pursue an extension of their 90-day tariff truce, though no major breakthroughs were announced. The discussions, described as constructive by both sides, aimed to ease escalating trade tensions between the world’s two largest economies.
US Treasury Secretary Scott Bessent stated, “The meetings were very constructive,“ but emphasized that President Donald Trump retains the final decision on whether to extend the truce before its August 12 deadline. Trump, returning from Scotland after signing a trade deal with the EU, said Bessent felt “very good about the meeting, better than he felt yesterday.”
China seeks reductions in US tariffs and looser tech export controls, while Washington pushes for structural economic reforms in Beijing. “Cooperation between China and the United States will benefit both sides, while if they fight both will be hurt,“ China’s state news agency Xinhua reported.
Analysts note China’s strong negotiating position, given its dominance in rare earth minerals and manufacturing. Unlike the EU, which recently struck a deal with the US, China faces less immediate pressure to concede. “China is well aware of its strong negotiating position,“ said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
Trump hinted at a possible meeting with Chinese President Xi Jinping by year-end, though officials confirmed no such discussions occurred during the Stockholm talks. The next round of negotiations is expected in 90 days. - Reuterspix
