China asserts greater demands for U.S. during trade negotiations in Stockholm
In the ongoing US-China trade negotiations, both countries' representatives met in Stockholm for extended discussions, but no significant breakthroughs have been announced yet [1][4]. This round of talks comes after previous meetings in Geneva and London earlier in 2025 [1][4].
The impending expiration of a 90-day tariff truce on August 12, 2025, adds pressure to these negotiations. If not extended, this could lead to a reinstatement or increase of tariffs that would significantly disrupt global markets and supply chains [2][3].
Key contentious issues in these talks include advanced semiconductor technology export controls imposed by the US, rare earth metals trade where China holds dominant global processing capacity, agricultural exports (notably soybeans), and energy resources like LNG [2].
China, with its leverage beyond rare earths, is also focusing on seeking the removal of the 20% fentanyl-related tariffs [5]. The US, on the other hand, prioritizes intellectual property protection, market access for its companies, and supply chain security [2].
During the Stockholm talks, US Treasury Secretary Bessent and Chinese Vice Premier He Lifeng were among the senior officials involved [1][3][4]. However, no definitive agreements on removing tariffs or lifting technology restrictions have been reported yet. The talks aim to maintain dialogue and mutual respect, with the goal of preventing a re-escalation of tariff hostilities and stabilizing the broader US-China economic relationship [3].
Potential outcomes of the ongoing negotiations include an extension of the tariff truce, possible phased relief or recalibration of export controls on technology, particularly semiconductors, incremental progress on agricultural and energy trade, and continued strategic positioning without fully resolving deeper geopolitical and economic frictions [2][4].
Meanwhile, China has shown a tough posture at a key summit with the European Union [6]. The US and Chinese officials will also meet in Europe for further trade talks [7]. China announced last month that it would add two more fentanyl precursors to its list of controlled substances [8].
In summary, the US-China trade talks remain ongoing with high stakes, focusing on tariff extension and managing tech export controls. The situation is fluid, with the expiration of the tariff truce in mid-August acting as a critical deadline that both sides appear motivated to address to avoid economic disruption [1][2][3][4].
References:
- Bloomberg
- Reuters
- CNN
- Financial Times
- South China Morning Post
- Euronews
- BBC
- AP News
- The contentious issues in the US-China trade negotiations, such as advanced semiconductor technology export controls, could significantly impact the business technology landscape, as both countries aim to negotiate a phased relief or recalibration of export controls.
- As the US and China continue their trade talks in Europe, they are also strategically positioning themselves, focusing on intellectual property protection and market access for businesses in the technology sector, which is crucial for both economies.
