US-China talks restart as hopes grow for trade war truce extension

The US and China have began a recent spherical of talks as expectations develop that the world’s two greatest economies may agree a 90-day extension to their commerce conflict truce.The conferences in Sweden – led on Washington’s facet by Treasury Secretary Scott Bessent and for Beijing by Vice Premier He Lifeng – come hours after US President Donald Trump introduced a framework tariffs take care of the European Union.The present 90-day truce between the US and China – which noticed the 2 nations briefly decreasing tariffs on one another – is ready to finish on 12 August.Since Trump returned to the White Home in January, the US and China had raised import levies on one another to greater than 100%.The present 90-day tariffs pause got here after high officers from the US and China met in Geneva and London earlier this yr.Final week, Bessent mentioned talks with China have been in “an excellent place” and recommended the brand new spherical of talks may end in a second truce.On Monday, citing sources on each side, the Hong Kong-based South China Morning Put up reported that the US and China are anticipated to increase the truce by one other three months.In the meantime, the Monetary Instances reported that the US has frozen restrictions on expertise exports to China to keep away from hurting commerce talks and assist Trump safe a gathering with President Xi Jinping this yr.Expertise exports, particularly chips used for synthetic intelligence (AI), have been on the centre of the commerce dispute.US safety officers have raised involved that high-end US chips may very well be utilized by China’s army and assist its corporations within the race for innovation.The BBC has contacted the US Treasury and the Commerce Division, and the Chinese language embassy in Washington for remark.The newest US-China talks come after Washington struck offers with each the EU and Japan within the final week.On Sunday, Trump and European Fee President Ursula von der Leyen introduced a commerce settlement framework.It ended a months-long standoff between two of the world’s greatest financial companions.Final week, Trump mentioned Washington had agreed a “large” commerce take care of Tokyo.Beneath the settlement, Japan would make investments $550bn (£407bn) within the US whereas its items offered to America can be taxed at 15% once they attain the nation – under the 25% tariff Trump had threatened.The US has additionally struck tariffs offers with the UK, Indonesia and Vietnam.At 10%, Britain has negotiated the bottom US tariff price thus far.No comparable breakthrough is anticipated from the US-China talks this week however, with expectations of an extension to their truce, there are hopes that world commerce is not going to be hit by recent tariffs disruption.