China Heads to Stockholm Trade Talks with Renewed Confidence Amid U.S. Concessions

AP/ Xinhua

Chinese Vice Premier He Lifeng & U.S. Treasury Secretary Scott Bessent in a prevous encounter.

For the third time in as many months, senior officials from China and the United States will meet in Europe for critical trade talks — with Beijing arriving at the table emboldened by recent economic resilience and strategic leverage.

Set to begin on Monday in Stockholm, the talks come after a series of key developments, including Washington’s partial rollback of export controls on China — notably a reversal of the ban on a vital Nvidia AI chip — and stronger-than-expected Chinese economic performance, despite months of escalating trade tensions.

Vice Premier He Lifeng will lead the Chinese delegation, while U.S. Treasury Secretary Scott Bessent heads the American side. Ahead of the negotiations, Bessent said the two parties would likely agree to extend the current trade truce, which is due to expire on 12 August. The 90-day reprieve, brokered in Geneva this May, froze sweeping tariffs introduced in April that threatened to severely disrupt bilateral trade.

Chinese officials are expected to press for the removal of remaining tariffs, particularly the 20% levies imposed by the U.S. in response to Beijing’s alleged role in the illegal fentanyl trade. Last month, China added two fentanyl precursors and nitazenes — a group of synthetic opioids — to its list of controlled substances, in what is widely seen as a goodwill gesture.

CNN reported that Beijing is also likely to demand a further loosening of U.S. technology export controls, which have blacklisted hundreds of Chinese companies, including tech giant Huawei. Analysts say China now sees itself in a stronger bargaining position, citing the West’s dependence on Chinese-controlled strategic minerals and the sustained strength of its export economy.

“After this period of U.S.-China rivalry, the American side has come to realise that China holds significant cards — and more importantly, is willing to play them when necessary,” said Professor Wu Xinbo, director of the Center for American Studies at Fudan University and an adviser to China’s foreign ministry.

The upcoming talks follow a high-level summit between China and the European Union last week, where Beijing signalled its determination to maintain a hard-line stance on trade, despite EU concerns over market access and geopolitical tensions.

U.S. President Donald Trump, who recently concluded trade deals with the UK and Japan, has also softened his rhetoric on China, expressing interest in visiting the country “in the not too distant future” at President Xi Jinping’s invitation. A face-to-face Trump-Xi meeting in the autumn is now seen as a likely outcome of continued negotiations.

“This is a fragile ceasefire,” Bessent said, noting that while progress has been made, the situation remains fluid. “But right now, trade is in a very good place with China.”

Beijing has kept the agenda vague, stating that talks will continue “guided by the principles of mutual respect, peaceful coexistence, and win-win cooperation.”

The U.S. has also confirmed that other contentious issues will be discussed, including China’s purchases of sanctioned oil from Russia and Iran, as well as the status of TikTok’s proposed U.S. spinoff, which is awaiting Chinese regulatory approval.

As the Stockholm negotiations begin, attention will focus on whether the two powers can translate their temporary truce into lasting agreements that reduce tariffs, ease technology restrictions, and rebuild a degree of trust in an increasingly fractured global trade environment.



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