The US and Chinese officials are set to meet in Europe for trade talks, with Beijing expected to bring fresh confidence and a growing appetite for further US concessions. The Trump administration’s firm grip on strategic minerals has led to some export curbs on China, including a reversal of the ban on sales of a key Nvidia AI chip. The Chinese economy has delivered better-than-expected growth months into the trade war, posting a record trade surplus that underscores the resilience of its exports as they pivot away from the US market.
Treasury Secretary Scott Bessent, leading the US delegation, said before the talks in Stockholm that the two sides would be working out a “likely” extension of their trade truce, which currently expires on August 12. The truce was pulled back from the brink of collapse with further talks in London in June, after each side accused the other of reneging on its promises. The Stockholm talks may offer clues as to how much longer that detente can hold and whether the two countries can further bring down remaining tariffs and address other thorny issues, such as tech restrictions, as they work toward a lasting deal.
The latest round of negotiations follows Donald Trump’s recent flurry of trade deals with the United Kingdom, Japan, and other trade partners, part of the global tariff war he launched earlier this year. However, the US President appears to have dialed down his confrontational approach on China, and has spoken enthusiastically about visiting the country at the invitation of its leader Xi Jinping in the “not too distant future.”
Chinese experts say a key priority for Beijing is to seek the removal of the 20% fentanyl-related tariffs. Last month, China announced it would add two more fentanyl precursors to its list of controlled substances and placed nitazenes – a class of powerful synthetic opioids – on another list of controlled drugs.
