China calls for further concessions of the United States at the Stockholm trade talks

China calls for further concessions of the United States at the Stockholm trade talks

Hong Kong- For the third time within three months, US and Chinese officials meet for trade talks in Europe. This time, however, Beijing comes with more self -confidence at the negotiating table than ever.

China's influence in trade

The firm grip of china on strategic minerals forced the Trump administration to withdraw some export restrictions on China, including a surprising reversal of the ban on sales for an important Nvidia Ki-Chip.

In the meantime, according to the government data, the Chinese economy recorded a better growth in the middle of the trade war and achieved a record trade surplus that underlines the resilience of exports while averting from the US markets.

expectations of the talks in Stockholm

Recently, Beijing has confirmed his hard attitude at a crucial summit with the European Union and offered little to address the blocks of the block in relation to trade-like weights and the Ukraine War. When a new round of talks begins in Stockholm on Monday, the Chinese negotiating partners under the direction of Vice Prime Minister He Lifeng will receive their US colleagues with new self-confidence.

The current trade situation

Finance Minister Scott Bessent, who heads the US delegation, explained before the talks in the Swedish capital that the two sides would work on a "probable" extension of their commercial arms that are currently expiring on August 12th.

The 90-day ceasefire, which was agreed in Geneva at a meeting in May, had temporarily stopped three-digit tariffs that were imposed in April and at risk the trade between the two largest economies in the world. The ceasefire was saved thanks to further talks in London in June after both sides had accused each other of having broken their promises.

difficult negotiations before the US election

The talks in Stockholm could provide evidence of how long this relaxation continues and whether the two countries succeed in reducing the remaining tariffs and tackling other controversial topics such as technology restrictions while working towards a permanent agreement. The most recent round of negotiations follows a number of trade agreements by Donald Trump with the United Kingdom, Japan and other trading partners, part of the global customs war, which he triggered at the beginning of this year.

President Trump, however, seems to have driven down his confrontative attitude towards China and enthusiastically commented on a visit to the country at the invitation of XI Jinping in the "not too distant future".

The view of an agreement

Josh Lipsky, chairman of the international economy at the Atlantic Council, said that a transitional agreement was the most likely result this week. "At the moment, all signs indicate another 90-day sequel in which the tariffs remain 30% and continue the negotiations-with the probability of a meeting between Trump and XI in autumn," he said.

challenges and concerns

It was recently known that an employee of the US Ministry of Trade and a manager of Wells Fargo from the Chinese authorities China was shown , which overshadowed the conversations. Minister of Commerce Howard Lutnick described the ban as "outrageous".

Nevertheless, Besseter expressed an optimistic tone when he announced the new round of negotiations and said that "the trade in China is in a very good shape".

claims from Beijing

for Beijing is a central focus of the negotiations on the remaining US tariffs on Chinese imports. The tariffs amount to around 55%, including a 10% "reciprocal" customs, which the United States raised in April on trading partners, as well as 20% tariffs levied in China due to its role in import illegal fentanyls in the USA.

Chinese experts say that an important goal of Beijing is the elimination of the 20% tariffs in connection with fentanyl. Last month, China announced that two more fentanyl precursors have been put on his list of controlled substances.

he Weiwen, a Senior Fellow at the Center for China and Globalization, stated that the focus of this round of discussions was to pursue earlier agreements and to urge it to "concrete results".

Technology export controls and their importance

Beijing could also ask Washington to take the previously imposed technology export controls back on, including the listing of hundreds of Chinese companies on the “Entity List” of the Ministry of Commerce.

"After this period of rivalry between the USA and China, the US side has recognized that China has significant power resources and is ready to use them if necessary," said Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai.

The cards he spoke of refer to America's dependence on China's supply chains, including rare earths that are needed for everything from everyday electronics to combat aircraft.

On Tuesday, Bessent said that he intends to warn Beijing about his persistent purchase of sanctioned Russian and Iranian oil, as well as his support for Russia's war against Ukraine.