Will China-U.S. Meeting in Stockholm Offer Real Progress or Just Comfort?

TradingKey - Following the tariff agreements between the U.S. and Japan, as well as the U.S. and the EU, the third round of China-U.S. economic and trade negotiations in Stockholm has captured global attention. While some analysts suggest that this round of talks may not yield major breakthroughs, a series of recent developments point to a potential easing of trade tensions, which could still lead to unexpected positive outcomes.  

From July 27 to 30 (local time), the third round of China-U.S. economic and trade talks is taking place in Stockholm, Sweden, with Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent leading their respective delegations.  

According to Bloomberg, the agenda for this round of talks includes extending the current tariff truce, addressing fentanyl-related tariffs, and resolving issues surrounding China’s purchases of Russian and Iranian crude oil under sanctions.  

Bessent recently stated that the U.S. aims to outline potential extensions to the current tariff pause during this week’s meetings, adding that trade relations between the U.S. and China are in a "good place."  

Citing sources familiar with the matter, the South China Morning Post reported that China and the U.S. may extend the tariff truce for another three months to allow more time for negotiations. The current deadline for tariff discussions is August 12, and if no progress is made, both sides face the risk of a 125% tariff hike.  

Some analysts believe that, given the complexity of China-U.S. economic and trade relations, this round of talks may not achieve the same level of breakthroughs seen in the U.S.-Japan and U.S.-EU agreements. However, the negotiations could still pave the way for a meeting between Chinese President Xi Jinping and U.S. President Donald Trump later this year, tentatively scheduled for late October or early November.  

Last month, Chinese leadership extended an invitation to the U.S. for a visit, though no specific date has been announced. Trump stated that he would soon decide whether to visit China to address trade and security tensions.  

Analysts view the Stockholm talks as an opportunity to lay the groundwork for Trump’s potential visit to China.  

On Sunday (July 27), Trump mentioned during a meeting with European Commission President Ursula von der Leyen that the U.S. is "very close" to reaching a deal with China.  

On the same day, China’s People’s Daily emphasized that Beijing is participating in the Stockholm talks with sincerity and principle, with the goal of working with the U.S. toward substantive solutions.  

Despite lingering uncertainties — including the U.S.-Japan and U.S.-EU agreements — analysts at National Australia Bank (NAB) suggest that this week could still be a positive one, if only because the rules of the game are now clearer. With increased transparency in trade negotiations — not just in the U.S. but globally — there is growing willingness to invest and expand opportunities worldwide.