US and China officials on Tuesday began a second day of conversations in Stockholm to resolve long -standing economic disputes and step back in the growing commercial war between the two greatest economies in the world.
The meetings may not produce great immediate advances, but both parties could agree on a new 90 -day extension of the tariff truce achieved in mid -May. This could also pave the way for a possible meeting between US President Donald Trump and Chinese President Xi Jinping later this year, although Trump denied Tuesday having done everything possible to seek it.
The delegations met for more than five hours on Monday in Rosenbad, the Swedish Prime Minister’s office in the center of Stockholm. None of the parties made statements after the first day of conversations.
The US Treasury Secretary, Scott Besent, was seen arriving at Rosenbad this Tuesday morning after a separate meeting with Swedish Prime Minister Ulf Kristerson. The Vice Primer Chinese Minister, He Lifeng, also arrived at the scene.
China faces August 12 as a deadline to reach a durable tariff agreement with the Trump administration, after reaching preliminary agreements in May and June to end weeks of growing retaliation tariffs and the suspension of the supply of rare earth minerals.
Without an agreement, global supply chains could face new turbulence due to the return of American tariffs at three -digit levels, which would be equivalent to a bilateral commercial embargo.
China can exert some influence thanks to its control over the global rare earth and magnets market, used in all types of products, from military material to windshield wiper engines, according to analysts.
Unlike the European Union, it does not depend on the United States for its security links and can allow trade negotiations to last for several more months, said Reuters Cyrus of the blonde, chief economist of the Commercial Hamburg Bank.
“China is very aware of its solid negotiating position, as seen clearly in the temporary climbing observed in April,” he said.
“But on Europe the Damocles sword of the withdrawal of the security guarantee by the United States always hangs, and that is why the EU did not intensify the situation as China did.”
Read more: EU and China have new conversations on tariff agreement in Stockholm
Trump on a possible meeting with XI to address tariffs
The Financial Times reported on Monday that the United States had suspended the restrictions on technological exports to China to avoid interrupting commercial negotiations with Beijing and supporting Trump’s efforts to achieve a meeting with XI this year.
Trump refuted the suggestions that he was looking for a meeting with XI. “This is not correct, I am not looking for anything! I could go to China, but it would only be by invitation of President XI, who has already been extended. Otherwise, I am not interested!” He wrote in Truth Social this Tuesday.
Previous commercial conversations between the United States and China, held in Geneva and London in May and June, focused on reducing US and Chinese retaliation tariffs from three -digit levels and restoring the flow of rare earth minerals, interrupted by China, and the artificial intelligence chips of NVIDIA, as well as other goods interrupted by the United States.
Among the broader economic problems, Washington complains that the Chinese model, led by the State and export -oriented, is flooding world markets with cheap products, while Beijing states that the export controls of technological products for national security reasons in the United States seek to stop Chinese growth.
Besent has already announced an extension of the deadline and declared that he wants China to rebalance its economy, moving away from exports and prioritizing domestic consumption, an objective that US political leaders have pursued for decades.
With Reuters information
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