On 28 July 2024, senior officials from the United States and China met in Stockholm to tackle ongoing economic disputes that sit at the heart of their trade war. The aim is to extend a truce that has helped keep soaring tariffs at bay, providing a rare moment of collaboration between the world’s two largest economies.
Key Participants and Goals
The meeting featured US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. As both sides face an 12 August deadline to reach a durable tariff agreement, the stakes are high. Without a solid agreement, global supply chains could face renewed turmoil, with duties exceeding 100% resuming.
- Scott Bessent, US Treasury Secretary
- He Lifeng, Chinese Vice Premier
- Focus on extending truce beyond August deadline
Undercurrents of Trade Relations
The Stockholm talks follow a significant deal struck by President Trump with the European Union, which includes a 15% tariff on most EU imports. Trade analysts believe that a 90-day extension of the current tariff and export control agreement is likely, providing a buffer to prevent escalating tensions.
Trump commented, “The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,” heightening anticipation for a possible meeting with Chinese President Xi Jinping later this year.
Ongoing Challenges
While discussions in Stockholm are significant, they may not yield immediate breakthroughs. The focus remains mostly on preventing further escalation rather than resolving deeper issues, such as China’s export-driven economic model and US national security concerns regarding technology transfer.
Previously, talks in Geneva and London also aimed to reduce retaliatory tariffs and restore trade flows of critical goods, including rare earth materials. Analysts indicate that the complexities of US-China negotiations greatly exceed those with other Asian countries, necessitating more patience.
The Future of US-China Relations
As both nations continue to negotiate, questions linger over whether tariffs can successfully induce a shift in China’s economic strategy towards domestic consumption. China has long been urged to reduce its reliance on exports—a goal that US policymakers have chased for decades.
Experts suggest the outcome of the Stockholm meeting could set the tone for the future of US-China relations amid growing concerns around market stability.