Top officials from Washington and Beijing convened in Stockholm, Sweden, for the latest discussions in their ongoing trade negotiations, crucial for the economies of both nations.
This meeting follows President Donald Trump’s decision in April to extend a temporary halt in raising tariffs on Chinese goods by 90 days. This pause is due to expire on Friday, heightening the stakes in the current dialogue.
At present, U.S. tariffs on Chinese imports sit at 30%, while tariffs are set at a minimum of 10% for goods from other countries. The Trump administration is pursuing individual trade agreements with various nations.
On Sunday, President Donald Trump met Ursula von der Leyen, the president of the European Commission, and successfully reached a new trade deal with the European Union.
Elizabeth Economy, a former senior adviser for China in the Department of Commerce during the Biden administration, shared with Morning Edition her expectations surrounding the trade talks between the U.S. and China. She expressed skepticism about a significant breakthrough occurring this week, anticipating only modest advancements.
Economy, now the Hargrove Senior Fellow at Stanford University’s Hoover Institution, explained the conflicting priorities of both nations and the reasons behind the lengthy negotiation processes.
The ongoing discussions mark the third round of talks in a few months, prompting questions about the possibility of meaningful progress.
“I don’t think we’re going to see a breakthrough,” says Economy, pointing to signals from U.S. Trade Representative Jamieson Greer, indicating that major developments will not occur at this juncture. U.S. Treasury Secretary Scott Bessent has expressed intentions to extend the mitigation of trade tensions for another three months to facilitate further negotiations.
“What I’m expecting is really just small progress,” Economy said, reflecting on the focus of the current talks. She highlighted that negotiators are likely working to establish the parameters for a potential deal that may be revealed during a summit between President Donald Trump and President Xi in late October or early November, probably on the sidelines of the Asia-Pacific Economic Cooperation leaders summit in Korea. She noted that Trump has expressed a strong desire to meet with Xi, potentially laying the groundwork for a visit to Beijing.
When discussing the U.S. priorities, Economy explained that there are two primary categories of requests being made of China. The first includes expectations similar to those outlined in the phase one trade deal from the Trump administration’s initial term. This involves increasing Chinese purchases of U.S. goods—specifically in sectors such as agriculture, energy, aviation, and medical devices.
Additionally, the U.S. seeks concessions related to the sale of TikTok to an American company.
The second category of asks pertains to structural changes within China’s economic practices. The U.S. is pushing for China to halt the export of overcapacity goods in sectors such as solar panels, electric vehicles, and batteries, with similar expectations emerging for legacy semiconductors and new materials. This reflects broader concerns about the Chinese economic model, with the administration also urging China to cease its support for Russia’s military actions in Ukraine and to limit oil purchases from Iran.
These latter requests represent more substantial challenges, indicating a significant divergence in expectations between the U.S. and China.
On the flip side, Economy detailed China’s aspirations during these negotiations. China is focused on loosening U.S. export controls related to technology and desires treatment comparable to that provided to other countries in trade agreements.
Beijing seeks a reduction in tariffs to align with the recent trade deal made with the European Union, along with changes to restrictions on inbound and outbound investment specific to American dealings with China.
Moreover, China expects the U.S. to refrain from critiquing its economic model, which it views as having achieved considerable success overall.
As the dialogue continues, future summits and negotiations will be closely monitored for any signs of progress or changes in the economic landscape.
image source from：npr
