A trade agreement between the world’s two largest economies is a 90 -day -old truce between China and the United States is expected to end on Tuesday.
“Last month’s negotiations in Stockholm have promoted our talks with China and I believe we have the things of an agreement that will benefit both of our great nations,” US Finance Minister Scott Bessent wrote on the Microblogging platform “X”. July.
Bessent’s tweet came in the heels of a statement by President Donald Trump on trade agreements with various countries that attributed pressure tactics, such as Britain, Vietnam, Japan, Indonesia, the Philippines and Pakistani-as well as the European Union.
Stockholm’s negotiations – the first major commitment between Washington and Beijing after Geneva and London’s sessions – were described on both sides as “productive and horrifying”, despite the fact that they did not give any tangible results.
Chinese Vice President He Lifeng led the Chinese delegation, accompanied by Commerce Minister Wang Wentao and WTO’s trade negotiator Li Chenggang.
On the American side, negotiators included Finance Minister Besent, Commerce Secretary Howard Lutnick and trading spokesman Jamieson Greer.
The main objective was to negotiate a 90 -day expansion of the truce agreed in mid -May, according to which triple prices declined: the US from 145% to 30% and Beijing from 125% to 10%.
The truce has so far been held, but is facing the deadline of August 12th for renewal or rejection. The indications are that the two sides would maintain the truce, as Bessent tried to downplay the risk of escalation, saying that “the meetings were very constructive.
A trade war between the two leading economies caused by Trump’s sweeping “mutual” invoices has created a dangerous volatility in world markets and threatened to unfold the international trade system that the US has strongly protected after World War II. However, Trump supported, announcing a 90 -day “pause” after the first trade meeting between the two sides in Geneva.
In addition to the invoices, the two worldwide giants are also in loggerheads on a series of issues, including the US requires that China’s Bytetance are selling a popular Tiktok video exchange platform to an American company and that Beijing accelerates critical mate.
Analysts, however, argue that these tensions are driven more than geopolitical than economics, as the United States considers China’s rapid rise as a geostrategic threat to its world domination – and therefore seeks to limit it.
The Greer trading spokesman also failed to absence from the Stockholm meeting, saying they did not deliver significant discovery, but provided opportunities to monitor previous commitments, including exports of rare land and commercial semiconductor measures and deficit meters.
Rare minerals, technology export controls, market access and industrial capacity and fentanyl -related invoices were some of the key issues discussed in Stockholm.
China has partially repeated exports of rare earths to the US following an agreement reached between Trump and Xi Jinping in early June. But the American side seeks clearer commitments on the volume and timetable of these exports.
China is drowning over rare magnets, which are critical to high -tech technology export controls.
Trump had stopped Nvidia from export to China the most powerful chipsets of critical importance for the development of cost -effective AI models. The administration later reverses the prohibition provided that the brands will be equipped with monitoring and installation functions.
However, the administration of the cyberspace of China, the country’s internet regulator, however, expressed concerns about the potential “backdoor” security risks, fearing that Chinese users could be affected and privacy rights. Nvidia denied that her chips had any hidden method of bypassing regular authentication or security controls.
Regarding access to the market and industrial over -consumption, Chinese negotiators are pushing for concerns for US invoices, dual -use exports and the electoral impact of global flood market markets that go beyond the state.
The American side called for better access to US companies and the stricter control of industrial subsidies.
In fentanyl -related invoices, Trump’s administration continues to impose higher invoices on China for its alleged role in Fentanyl trade. China has requested clarification on what is a sufficient action to overthrow the duties during Stockholm discussions. The secretary of the Ministry of Finance, Bessent, said they had touched US concerns about the Iranian oil market from China, providing Russia the dual -use technology that could be used on the battlefield and production goods at a rate beyond what is supported by world demand.
On August 2, President Trump signed an executive mandate that amended further pricing interest rates with 69 commercial partners, imposing “additional advertising tasks on goods of certain commercial partners”, including long -term allies such as Canada and Canada and European Union.
The move has sparked wide criticism with critics accusing Trump of reversing decades of globalization that made America’s economy for the world’s envy economy, but have contributed to a long reduction in manufacturing. Trump expressed careful optimism about Stockholm’s talks. However, senior US officials stressed that the final decision to keep the truce remains on its own.
Observers attend a possible Trump-XI summit later this year, possibly during APEC’s meeting in South Korea at the end of October or early November-a meeting analyst say they could fasten any truce and pave the way for wider relations.
In Stockholm, China’s Vice President He Lifeng said the two nations are sharing extensive common interests and wide space for cooperation in economic and commercial areas. “The cooperation between them benefits both sides, while the confrontation hurts both sides,” he added.
“A stable, healthy and sustainable economic and commercial relationship of China-USA serves not only the corresponding development goals of the two countries, but also contributes to global economic growth and stability.”
The evaluation of the Chinese Vice -President is in line with the views of international financial institutions. The IMF warned that escalating invoices poses serious risks to global economic growth and inflation. While Geneva’s upgrade caused a moderate upgrade to GDP worldwide prospects in 2025 of the IMF to 3%, analysts warn that uncertainty in commercial policy will continue to weigh business confidence unless the top two economies reach a durable trade agreement.
The burden is now in President Trump, who is accused of weapons, even at the expense of America’s world leadership.
The writer is a student and independent contributors with great interest in geopolitics and geographical
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