Stockholm, Sweden – This week, high-level envoys from China and the US met for the third round of economic and trade talks, marking a new chapter of dialogue between Chinese Vice premier He Lifeng and US Treasury Secretary Scott Bessent alongside Trade Representative Jamieson Greer. Over two days, both sides held candid, in-depth discussions on bilateral trade ties, macroeconomic policies, and the progress of previous agreements from Geneva and London.
Fresh Consensus on Tariff Pauses
Following the talks, China and the US agreed to push for an extension of the current pause on 24% reciprocal tariffs and matching countermeasures. Li Chenggang, China’s international trade representative, emphasized the importance of keeping trade teams in close contact to ensure stable and healthy relations. Meanwhile, Secretary Bessent noted that final approval rests with US President Donald Trump, and technical details are still being hashed out.
The Cost of Protectionism
Recent years have seen a surge in US protectionism, with tariff hikes reshaping global trade. In July, auto imports from Japan faced a 12.5% rate increase, while a new EU agreement set a uniform 15% tariff on most exports, alongside 50% duties on steel and aluminum. Since 2018, US measures have targeted over $500 billion of Chinese goods, a strategy experts warn may backfire by disrupting supply chains and weakening domestic growth.
Cooperation Drives Growth
History shows that isolationism and high tariffs often stall economies. Despite headwinds, China and the US remain key partners. Data from China’s customs agency reveals trade volumes jumped from under ¥300 billion in May to over ¥350 billion in June, highlighting the immediate benefits of resumed dialogue.
Looking Ahead
Both nations have much to gain from collaboration and much to lose from conflict. By sticking to principles of mutual respect, peaceful coexistence, and win-win cooperation, China and the US can steer their relationship toward a sustainable path. Continued dialogue could inject fresh momentum into global economic recovery and support lasting advancements for businesses and communities worldwide.
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China and the US to advance a stable economic and trade relationship
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