US-China Trade Talks Resume Amid Hopes for Extended Truce

A new round of trade negotiations between the United States and China is set to begin on Monday, raising expectations that the two economic superpowers may agree to prolong their current 90-day trade ceasefire.

The discussions, taking place in Sweden, will be led by U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. The talks come shortly after U.S. President Donald Trump unveiled a tariff agreement framework with the European Union.

The temporary truce, which is due to expire on August 12, was established earlier this year after high-level meetings in Geneva and London. It led to both nations easing tariffs on each other, following a period during which import duties surged to over 100% on both sides.

Treasury Secretary Bessent recently stated that talks with Beijing were “in a very good place,” suggesting the possibility of a renewed truce. According to the South China Morning Post, both U.S. and Chinese sources anticipate a three-month extension of the agreement.

Meanwhile, the Financial Times reported that the U.S. has put certain tech export restrictions on hold to avoid derailing the talks and to facilitate a future meeting between President Trump and Chinese President Xi Jinping.

Technology, particularly advanced semiconductor chips used in artificial intelligence, remains a sticking point in the dispute. U.S. officials have voiced concerns that such components could strengthen China’s military capabilities and give its tech firms a competitive edge.

The BBC has reached out to the U.S. Treasury, the Department of Commerce, and the Chinese embassy in Washington for official comments.

These U.S.-China negotiations follow a series of trade breakthroughs by Washington in recent days. A new trade framework has been agreed with the European Union, ending a prolonged standoff, and a major deal was also announced with Japan—entailing a $550 billion Japanese investment in the U.S. and a reduced tariff rate of 15% on Japanese exports, down from the previously threatened 25%.

Additional tariff arrangements have been made with the United Kingdom, Indonesia, and Vietnam, with the UK securing the lowest rate at 10%.

While a major breakthrough with China is not anticipated this week, analysts remain hopeful that an extension of the trade truce will prevent renewed disruptions to global commerce.

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