Efforts to defuse the escalating trade tensions between the United States and China are gaining momentum as top officials from both nations meet in Sweden this week. The renewed negotiations come just days before the expiration of the current 90-day trade truce, set to end on August 12.
Led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the talks follow a series of high-level meetings earlier this year in Geneva and London. These discussions had initially resulted in a temporary suspension of tit-for-tat tariffs that had exceeded 100% under the Trump administration.
There is growing optimism that the truce will be extended. According to the South China Morning Post, both sides are preparing for a possible three-month extension. Bessent recently described the talks as being in “a very good place,” hinting at the potential for a breakthrough.
Meanwhile, reports from the Financial Times suggest that the US has quietly frozen certain technology export restrictions to China. This move, which primarily affects advanced AI chips, appears to be a strategic concession aimed at preserving diplomatic momentum and facilitating a future meeting between President Donald Trump and Chinese President Xi Jinping.
Technology exports have been a focal point in the trade war. US officials have expressed national security concerns over the possibility of advanced American chips being used by China’s military or giving its tech firms a competitive edge in AI innovation.
These US-China negotiations follow recent trade developments between Washington and other global powers. Within the past week, the US has announced trade frameworks with the European Union and Japan, alongside new tariff agreements with the UK, Indonesia, and Vietnam. Notably, Britain secured the lowest US tariff rate so far, at 10%.
While a major breakthrough is not anticipated from the current round of US-China talks, analysts believe that an extension of the tariff pause would prevent further global trade disruption. As the world’s two largest economies seek common ground, a renewed truce could pave the way for more comprehensive agreements in the months ahead.
