U.S. and China Continue Talks in Stockholm to Address Trade Disputes
U.S. and Chinese trade officials have continued their discussions in Stockholm, Sweden, aiming to resolve longstanding tariff disputes that have significantly impacted the economic relationship between the world’s two largest economies. The second day of meetings took place on Tuesday, following a five-hour session on Monday behind closed doors at the Swedish prime minister’s office.
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng did not make any public statements after the first day of talks, leaving the details of their discussions unclear. However, prior to the resumption of negotiations, Swedish Prime Minister Ulf Kristersson met with Bessent and U.S. Trade Representative Katherine Tai for breakfast.
The U.S. has managed to reach tariff agreements with several key trading partners, including the United Kingdom, Japan, and the European Union, since former President Donald Trump introduced “Liberation Day” tariffs against multiple countries in April. However, China remains the most significant unresolved issue in these trade tensions.
Greer, speaking through social media, expressed optimism about the ongoing dialogue. “The Chinese have been very pragmatic,” he said. “Obviously we’ve had a lot of tensions over the years. We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations.”
While Greer acknowledged that it is uncertain whether a deal will be reached, he emphasized that the conversations are constructive and moving in the right direction. Analysts anticipate that the Stockholm talks may lead to an extension of current tariff levels, which are significantly lower than the triple-digit percentages that caused global markets to fluctuate earlier this year.
The two sides have already agreed to a 90-day pause on high tariffs, which was set during bilateral talks in Geneva in May. This period is due to end on August 12. Currently, the U.S. imposes a 30% tariff on Chinese goods, while China applies a 10% tariff on U.S. products.
Other topics under discussion include American businesses’ access to the Chinese market, Chinese investment in the U.S., the flow of fentanyl components from China to the U.S., Chinese purchases of Russian and Iranian oil, and U.S. efforts to restrict exports of Western technology, such as AI chips.
The meetings could also provide clarity on the potential for a summit later this year between President Donald Trump and Chinese President Xi Jinping, seen by some as a critical step toward securing major agreements between the two nations.
On his Truth Social platform, Trump stated that he is not seeking a summit with Xi but would consider visiting China if invited. “Otherwise, no interest!” he added.
Although the Chinese side has not provided detailed objectives for the talks, Bessent suggested that the situation has stabilized enough for both countries to begin considering a long-term balance in their economic relationship.
Since China integrated into the global trading system around two decades ago, the U.S. has consistently urged Beijing to promote more domestic consumption and offer greater market access to foreign goods, including American products.
Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, noted that Trump’s team would face challenges from a “large and confident partner that is more than willing to retaliate against U.S. interests.” She warned that China has learned from past experiences and “will not buy into a one-sided deal this time around.”
During the first day of talks, police cordoned off a security zone along Stockholm’s waterfront, drawing attention from tourists and locals eager to catch a glimpse of the high-level officials. The prime minister’s office was decorated with American and Chinese flags, highlighting the significance of the discussions.
As the talks continue, the outcome could have far-reaching implications for U.S.-China trade relations and global economic stability.
Leave a Reply