China Vice Premier He Lifeng enters building for US trade talks

China Vice Premier He Lifeng enters building for US trade talks

China's Vice Premier He Lifeng has entered the building for crucial U.S.-China trade talks in Stockholm, Sweden. The talks, which are set to take place from July 27 to July 30, aim to extend the current tariff truce and potentially resolve long-standing trade disputes between the two nations [2].

The visit coincides with a high-level delegation of American executives traveling to China, led by FedEx Chief Executive Rajesh Subramaniam. The delegation, organized by the U.S.-China Business Council (USCBC), will meet senior Chinese officials to discuss market access and other business-related issues [1].

The talks in Stockholm are a continuation of previous negotiations held in Geneva and London. The U.S. and China have extended their tariff truce by 90 days, delaying potential new tariffs on billions of dollars in goods traded since 2018. This temporary relief has been welcomed by financial markets, which had braced for renewed tariff escalations that could have disrupted supply chains and pressured export-dependent industries [2].

Despite the extension, core issues remain unresolved. These include U.S. efforts to curb fentanyl production and China’s demands to remove tariffs on related chemicals. Both sides have framed these tariffs differently, with China viewing them as obstacles to collaborative efforts in combating drug trafficking and the U.S. administration tying them to domestic policy priorities [2].

The visit of Vice Premier He Lifeng to Sweden underscores the political and economic pressures shaping the negotiations. The U.S. faces an election year, complicating Biden administration efforts to enact sweeping trade reforms. Meanwhile, China’s slowing economy has increased its reliance on stable export markets. Despite these challenges, neither side has publicly confirmed the truce’s extension, fueling skepticism about its durability [2].

The 90-day window provides a reprieve for businesses and markets, but experts warn it may not suffice to resolve entrenched disagreements. The focus now shifts to whether negotiators can transition from crisis management to sustained cooperation. A successful resolution would require both sides to move beyond tactical concessions and address structural disputes, such as intellectual property protections and digital trade frameworks [2].

The outcomes of the Stockholm talks will be critical in determining whether this truce marks a step toward de-escalation or a temporary pause before renewed conflict. The world’s two largest economies are at a pivotal moment, and the success of these negotiations could have far-reaching consequences for global trade.

References:
[1] https://finance.yahoo.com/news/several-us-executives-visit-china-055530218.html
[2] https://www.ainvest.com/news/china-tariff-truce-extended-90-days-late-november-averting-short-term-market-volatility-2507/
[3] https://www.reuters.com/markets/emerging/chinas-vice-premier-he-lifeng-hold-us-trade-talks-sweden-2025-07-23/