Top USA and Chinese officials meet on Monday in Stockholm to try to expand their fragile tariff detention in mid -August and explore wider steps to relieve the tension of the trade.
Stockholm negotiations come just a few days after Trump secured his largest trade agreement with the European Union. According to this agreement, most EU exports to the US, including cars, will face 15% of the tariff. In return, the EU committed itself to buy $ 750 billion in US energy and invest $ 600 billion in the US in the coming years.
Meanwhile, Washington and Beijing are expected, according to a report from South China Morning, to extend their current tariff for another three months and quote unnamed sources familiar with interviews.
One source told newspaper that no party stored new tariffs during the extension. The existing pause in the escalation of tariffs, originally set up to the expiration of August 12, has helped prevent further deterioration in business relations, as both parties continue to negotiate on broader economic and geopolitical disputes.
What is on the plate at Monday’s meeting?
Interviews led by Chinese Vice -Přezir He Lifeng and US Finance Minister Scott Bessnt refers to a third high -level meeting in less than three months. The agenda involves negotiating the duration of the current freezing of the tariff and addressing questionable questions such as US tariffs associated with Fentanyl trading and continuing Chinese purchases of sanctioned Russian and Iranians Oil.
If no agreements are reached, global supplier chains could be thrown again, as US tariffs are ready to return to a repressive three -digit level, which would effectively represent a bilateral business embargo.
Also read: The US and China speak tariffs. Hope grows that the ceasefire lasts.
Yet Bessnt has said in recent days that the US will use this week to elaborate what is “probably expanding” for the current tariff break, adding, “I think the trade is in a very good place with China.”
Any progress this week in the US-Chinese could lay the foundations for a potential meeting between Donald Trump and Chinese President Xi Jinping, perhaps the timed main summit in South Korea at the end of this year. XI has expanded the invitation for Trump and the first lady Melania Trump to visit China during the phone call last month, although no date was confirmed.
The Swedish role as host of interviews became clearer after the Swedish Finance Minister Elisabeth Svanteson revealed that both US and Chinese officials had come closer to it during the recent G20 assembly in South Africa to propose Sweden as a neutral ground for conduct. Meetings in Stockholm indicate a silent but significant moment in the ongoing effort to manage the trade tension and prevent renewed tariff escalation.
US Ambassador David Perdue, who arrived in Beijing in May, introduced his XI login data on Friday, a Chinese envoy to the US published on X.
The core of the ongoing negotiations between the two largest economies in the world is an extraordinary station station means over critical technologies. Beijing’s strict control over the magnets of the rare country, which is essential for electric vehicles, wind turbines and advanced military systems, encounter large -scale export limitations in Washington on top semiconductors essential for the development of artificial intelligence.
A reduction in 20% of Trump fentanyl tariffs, which Trump imposed American, claims that Chinese companies supply chemicals used to create illegal drugs for Beijing, Eurasia Group analysts wrote in a note last week and quoted recent meetings with the Ministry of Public Security. Officials of the Ministry traveled to Geneva’s interviews in May and are likely to go to Stockholm, written by analysts, as Bloomberg says.
Also read: What is a fentanyl crisis?
While China has denied that it is responsible for the flow of a deadly drug, last month, it has tightened the controls on two chemicals that can be used to produce opioid. At the beginning of this month, Trump appreciated these movements. “China helps,” he told reporters. “We talk to them and are taking big steps.”
For the US, according to a person familiar with business conversations, recent Chinese events are not sufficient. The chances of lowering 20% of the tariff in this round of interviews are very slim, added a person who asked not to be identified, discussed sensitive matters, noticing everything that could turn into Trump’s whim, Bloomberg reported.
China would be more willing to work more on Fentanyl, Sun Chenghao, a professor at Tsinghu University in Beijing, but the US would have to remove related tariffs, stop accusing Beijing for what the American domestic problem and provide specific evidence of crimes.
The US commercial community remains promising for progress when Sean Stein, president of the US-Chinese Commercial Council, says Bloomberg TV that movement on Fentanyl presents the “biggest opportunity” in interviews.
“This then reduces the tariffs on the American side, which then opens the door for China to reduce the tariffs that allow us to sell agriculture, allows us to sell aircraft, allows us to sell cars that allow us to sell energy,” he said.
Oil shopping
When the US Minister of Finance Scott Bessnt launched the last round of business interviews, he signaled a wider negotiating agenda, including ongoing purchases of sanctioned Russian and Iranian oil in Beijing. However, China explained that it would not suit us on this front.
“China will not play together,” warned LV Xiang, US Affairs expert at the Chinese Academy of Social Sciences, spoke with state global times, and firmly rejected any effort to use China as a lever effect against the Russian economy.
At the same time, energy trade between the US and China has decreased sharply. In June, Chinese imports of American oil, LNG and coal fell to almost zero, for the first time in almost three years, while 10-15% tariffs were stored in February. The energy gap emphasizes how geopolitical friction deepens the abyss, although the negotiators seek to prevent a wider trade in tensions from governance.
Since both sides have met last month in London, the XI has returned some of its other retaliation measures. It is important that Beijing has strengthened the shipments of rare soil magnets, while the US released the sales of the sales of less balanced semiconductors to China.
Also read: Oil is rising on strong Chinese data, the US is moving in the war in Ukraine
In another potential gesture of goodwill, because Swedish interviews were announced this month, China revealed that it has suspended antitrust investigations of the local unit of American chemical manufacturer DuPont de Nemours Inc.
Chinese colossal production production will also be speaking for the Trump team.
I think the trade is in a very good place with China.
Bessnt said the US hopes that China “pulls part of this impact of production they do and focuses on building a consumer economy”.
(With Bloomberg inputs)
(Tagstotranslate) business interviews between US-Chinese
