Discussions on Extending the Tariff Suspension Set to Expire in September
The United States and China held their third round of high-level trade talks in Stockholm, Sweden, on July 28 (local time), discussing the extension of tariff suspension measures.
According to AP and other foreign media, the two-day talks included U.S. Treasury Secretary Scott Besant and U.S. Trade Representative Jamison Greer on the American side, and Vice Premier He Lifeng on the Chinese side. The first day's meeting lasted about five hours.
This round of talks is the third high-level trade negotiation, following meetings in Geneva, Switzerland in May and London, United Kingdom in June. The main agenda item was whether to extend the tariff suspension measures, which are set to expire on August 11. Reuters reported that both sides entered the talks aiming for a three-month extension.
Previously, at the first meeting in Geneva, the two countries agreed to mutually reduce ultra-high tariffs by 115 percentage points, resulting in a 30% tariff rate for the United States and 10% for China. At the second meeting in London, discussions were held on the United States easing export controls on semiconductors and China easing export controls on rare earth elements.
During this third round of talks, in addition to discussions on extending the tariff suspension, it is highly likely that Secretary Besant, as previously announced, raised the issue of China's industrial overproduction. On the other hand, China is believed to have requested clarification on the criteria for the 20% tariff imposed by the United States due to the fentanyl distribution issue.
There is also speculation that a wide range of topics were discussed, including agricultural trade and the sale of the U.S. business rights of TikTok, a Chinese video-sharing platform.
Before the talks, Representative Greer stated in an interview with CNBC, "I do not expect a major breakthrough today."
Meanwhile, the South China Morning Post (SCMP) reported that President Trump may hold talks with Chinese President Xi Jinping on the occasion of the Asia-Pacific Economic Cooperation (APEC) summit, which will be held in Korea from October 31 to November 1. It was mentioned that President Trump could visit China before the APEC summit or hold a separate meeting with President Xi during the summit.
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