China, US to hold trade talks in Stockholm

Chinese Vice Premier He Lifeng is scheduled to be in Sweden from July 27 to 30 for economic and trade talks with the US. Ahead of the meeting, Chinese state media published commentaries welcoming in-depth dialogue while underscoring Beijing's recognition of the long-term, complex nature of the negotiations.

Experts stressed that ensuring any concrete agreement is reached on the basis of equality and mutual benefit would bring fresh momentum to both countries' economic growth and the global trade order.

The new round of talks follows the key consensus reached during the Geneva trade consultations and the establishment of the framework in London, marking another round of face-to-face trade negotiations between China and the US.

In a commentary published Sunday under the byline "Zhong Sheng," the People's Daily noted that despite twists and turns in bilateral trade relations in recent years, China has always taken a constructive stance, insisting on resolving issues through equal-footed dialogue and negotiation. 

"In the face of renewed trade frictions, China has kept the door to dialogue open while firmly defending its legitimate rights and interests," the commentary said.

China's goal remains working with the US to achieve substantive solutions, it said, while emphasizing that goodwill does not mean compromising on core principles.

The commentary also said China is well aware of the long-term and complex nature of these negotiations. We clearly see that the trade frictions initiated by the US are not merely disputes over immediate interests but are fundamentally about the rules governing the international economic order.

With utmost sincerity and firm principles, the Chinese side is ready to work with the US side, using the Sweden talks as an opportunity to deepen mutual understanding, build trust, reduce misjudgments and enhance cooperation, it also said.

Separately, in a commentary published the night before, the Xinhua News Agency stated, "At a time of growing global uncertainties and instability, efforts by the two countries to foster dialogue for consensus and seek mutually beneficial outcomes not only align with their common interests but also respond to the expectations of the international community."

"China welcomes deeper dialogue, but is also fully aware of the long-term, complex and challenging nature of bridging gaps between the two countries," the commentary emphasized. Despite challenges ahead, managing differences and seeking cooperation through dialogue remains the only viable path forward, it pointed out.

Wide attention

Ahead of the new round of China-US trade talks, the world's attention is fixed on Stockholm. 

The Stockholm talks may offer clues as to how much longer that detente can hold - and whether the two countries can further bring down remaining tariffs and address other thorny issues, such as tech restrictions, as they work toward a lasting deal, a CNN report on Sunday said.

US Treasury Secretary Scott Bessent told FOX Business Network's Kudlow program on Thursday that trade relations between the US and China are stabilizing, allowing the Trump administration to shift some of its focus to broader economic issues with Beijing. He added that "trade is in a good place" between the two countries.

In recent months, China and the US have worked to bring their trade relations back on track after a period of strain, said Song Guoyou, deputy director of the Center for American Studies at Fudan University.

"After earlier meetings in Geneva and London, we are now seeing a more stable communication channel between the two nations to manage potential trade frictions. This is good for global trade stability," Song told the Global Times on Sunday.

Following the economic and trade talks in London, the two sides have maintained close communication, confirming the details of the framework established in London and advancing its implementation. China has reviewed and approved applications for the export of eligible controlled items in accordance with the law, and the US has removed a series of restrictive measures imposed on China in early July, according to Xinhua.

Song noted that US tariffs on Chinese goods remain high, so he expects the talks will likely focus on whether those tariffs can be further reduced or even eliminated, while also exploring new avenues for economic collaboration.

He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Sunday that further progress hinges on whether the US will address China's legitimate concerns by lifting existing high and unfair tariffs on Chinese goods and easing export controls in high-tech sectors.

The business community has also expressed anticipation for the new round of China-US trade talks. Lam Lung-on, president of the Greater Bay Area Importers and Exporters Association, said that for businesses in both countries, the upcoming talks send a positive signal, showing that both sides are working to improve trade conditions and reduce uncertainty.

"This gives companies the confidence to plan for the future, ramp up investments, and expand operations in each other's markets," Lam told the Global Times on Sunday.

However, Lam emphasized the harm caused by the US' existing tariffs and restrictions on businesses in both countries. "We strongly urge the US to eliminate the high tariffs on Chinese goods, as these not only hurt Chinese companies but also burden American consumers and importers by driving up costs in the US," Lam noted.

Uncertain US policy

He [He Weiwen] also warned of the uncertainty surrounding the current US policy, given that the US continues to pursue unilateral tariffs on a global scale. It is simultaneously pressuring multiple countries, which has triggered strong opposition from many of its trading partners, he said.

The US will send close to 200 letters to its trading partners on trade tariffs in the coming days, US President Donald Trump said Friday, according to Xinhua. The US administration has threatened to impose import tariffs starting August 1, the report said.

Former Polish Deputy Prime Minister Janusz Piechociński told the Global Times in a recent interview, "I believe the US tariff policy has seriously undermined global economic stability and confidence in rules-based international relations, and has also harmed its own economy and global trust."

"This is devastating for real businesses, which must make decisions daily amid growing complexity," Piechociński said. "In response, countries are expanding cooperation with other reliable partners to seek stability and common ground."

Regardless of the outcome of the talks, the Chamber of Commerce has concrete plans to promote market diversification, such as actively organizing member companies to participate in trade exhibitions in regions like the Belt and Road Initiative countries, ASEAN, and Europe, Lam said.

Concerns are also rising within the US over the negative impact of tariffs. The Budget Lab (TBL) estimated the effects of all US tariffs and retaliatory measures in force through July 22, 2025. Currently, US consumers face an average effective tariff rate of 20.2 percent - the highest since 1911, according to data published on the TBL's official website.

In terms of real GDP, TBL data showed that the cumulative effect of the 2025 tariffs will reduce US GDP growth this year by 0.8 percentage points. Over the long term, the US economy is projected to be persistently 0.4 percent smaller - the equivalent of $135 billion in constant 2024 dollars.