China Seeks Greater Trade Concessions from US in Stockholm Talks

In a significant development within international trade relations, Chinese and US officials are set to convene in Stockholm for the third round of negotiations in three months, starting Monday. This meeting comes at a time when China is approaching the discussions with newfound confidence, bolstered by positive economic indicators and a strategic advantage in global supply chains.

The backdrop of this dialogue is characterized by China's recent economic performance, which has outpaced expectations even amidst ongoing trade tensions. According to the National Bureau of Statistics of China, the nation reported a record trade surplus in June 2025, underscoring its ability to pivot away from reliance on the US market (National Bureau of Statistics of China, July 2025).

A key factor influencing these talks is the recent shift in US policy regarding export restrictions. Following China's firm control over strategic minerals, the Trump administration has rolled back some export curbs, including lifting a ban on the sale of Nvidia's AI chips to China (CNN Business, July 2025). This reversal indicates a willingness from the US to recalibrate its approach as both nations seek to stabilize their economic relationship.

The upcoming talks will be led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent. Bessent expressed optimism about the discussions, stating that trade is currently in a 'very good place' with China. He emphasized the likelihood of extending the current trade truce, which is set to expire on August 12, 2025 (CNN Business, July 2025).

Experts suggest that the primary agenda for China includes negotiating the removal of tariffs, particularly a 20% tariff imposed under the pretext of combating the flow of illegal fentanyl into the US. He Weiwen, a senior fellow at the Center for China and Globalization, noted that resolving these tariff issues is crucial for advancing US-China economic cooperation (Global Times, July 2025).

Additionally, the talks will explore technology export controls that impact Chinese companies, which have been a contentious point since the onset of the trade war. Wu Xinbo, director of the Center for American Studies at Fudan University, highlighted that the US's reliance on Chinese supply chains, particularly in areas such as rare earth minerals and technology, empowers Beijing in these negotiations (Fudan University, July 2025).

Despite the positive tone, challenges remain. Recent reports reveal that a US Commerce Department employee and a Wells Fargo executive have been barred from leaving China, raising concerns about the diplomatic atmosphere surrounding the negotiations (CNN Business, July 2025). Such incidents illustrate the fragility of the current ceasefire, as emphasized by Josh Lipsky, chair of international economics at the Atlantic Council, who remarked on the unpredictable nature of these discussions (Atlantic Council, July 2025).

As the Stockholm talks approach, the international community watches closely. The outcomes could have far-reaching implications for global trade dynamics, especially in light of President Trump's recent trade agreements with other nations and his evolving stance towards China. The ongoing negotiations serve as a critical juncture for both the US and China, with potential ramifications extending beyond bilateral relations to the global economic landscape.