Upcoming US-China Trade Talks Show Progress Towards Stable Relations

According to Bessent, another meeting between US and Chinese officials is anticipated within the next 90 days, with discussions on the regulation of Chinese rare earth elements becoming more defined after their earlier conversations in Geneva and London. He noted the development of good personal connections and mutual respect among participants, which has led to a clearer understanding of each other's agendas.

The stakes of these discussions have been highlighted by the International Monetary Fund, which raised its global growth projections while cautioning that increasing tariff rates might pose a significant risk. Chinese trade negotiator Li Chenggang mentioned that both parties acknowledge the importance of maintaining a stable economic and trade relationship, emphasizing active communication and timely exchanges of views between their economic and trade teams.

These negotiations may lay the groundwork for a future meeting between President Trump and Chinese President Xi Jinping, although Trump stated he is not actively seeking such an encounter. He expressed optimism about potentially meeting with Xi before the year's end, although details were lacking. In Stockholm, discussions also delved deeply into issues surrounding the US and Chinese economies, with a focus on China's need to transition from a state-led, export-driven manufacturing model to one that is fueled by consumer demand, which would in turn benefit US exports.

According to a summary provided by China's state news agency Xinhua, cooperation between China and the US will be mutually beneficial, while conflict could result in mutual harm. Stable and sustainable trade relations are deemed essential for achieving each other's development goals and enhancing global economic stability.

The recent Stockholm talks came in the wake of Trump's significant trade deal with the European Union, which established a 15 percent tariff on most EU goods exported to the US and a separate agreement with Japan. This deal has provided some relief to the EU but also incited frustration, particularly from France and Germany, regarding potential negative impacts.

China's significant influence in the global market for rare earths and magnets, essential for various industries, grants it a favorable negotiating position. Unlike the EU, which relies on the US for security, China can afford to allow trade discussions to prolong over several months, as pointed out by economic analysts.

Ongoing trade negotiations have concerned the US government, which criticizes China's export-dependent economy for saturating global markets with low-cost products. Meanwhile, China counters that US restrictions on technology exports are aimed at hindering its growth. In related news, China's industry minister recently met with a US business delegation, including representatives from Apple, promising to uphold market fairness and support foreign enterprises operating within China.