China US trade talk finished in Stockholm on July 29. With an agreement to extend the existing tariff freeze, preventing a rapid escalation in the trade war. Both sides praised the discussions as “in-depth,” “candid,” and “constructive”. This is indicating a shared understanding of the need of preserving a stable and robust economic partnership. The negotiations built on a past agreement between the two countries and included extensive discussions of macroeconomic issues, progress on previous agreements, and important trade problems.
Despite the optimistic tone, the two parties disagreed on the exact time and duration of the tariff pause extension. China agreed to work toward an extension of the reciprocal 24 percent tariffs imposed by the United States, as well as China’s countermeasures. However, the Chinese side has not declared a precise date or comprehensive breakthrough.
Agenda of China US trade talk:
Treasury Secretary Scott Bessent highlighted that, while progress was made during China US trade talk, no final agreement had been achieved. The extension of the tariff freeze is subject to US President Donald Trump’s assent, who is anticipated to study the results before granting any formal extension. Bessent described the negotiations as broad and positive. But emphasized that US negotiators must confer with the president before making final choices. If the pause is not extended by the August 12 deadline. Tariffs could revert to their higher levels from earlier this year.
Other key conversation during China US trade talk issues included American companies’ access to Chinese markets. Chinese investments in the United States, fentanyl component limits. China’s energy purchases from Russia and Iran, and export restrictions on sensitive technologies.
Overall, while the conversations indicate continued involvement and cautious optimism. The final extension of the tariff truce is largely dependent on political decisions in Washington, with additional negotiations expected in the coming months.
This development suggests a tentative but positive step toward easing trade tensions. The world’s two largest economies, pending upcoming decisions by US leadership.
