US and China agree to work on extending the deadline for new tariffs in trade talks
"Both sides are fully aware the importance of maintaining a stable, healthy China-US economic and trade relations," Li said, without elaborating how the extension would work.
US Treasury Secretary Scott Bessent described the talks as a "very fulsome two days with the Chinese delegation." He said they touched on US concerns over China's purchase of Iranian oil, supplying Russia with dual-use tech that could be used on the battlefield, and manufacturing goods at a rate beyond what is sustained by global demand.
"We just need to de-risk with certain, strategic industries, whether it's the rare earths, semiconductors, medicines, and we talked about what we could do together to get into balance within the relationship," Bessent said. He stressed that the US seeks to restore domestic manufacturing, secure purchase agreements of US agricultural and energy products, and reduce trade deficits.
The latest round of talks opened Monday in Stockholm to try to break a logjam over tariffs that have skewed the pivotal commercial ties between the world's two largest economies. The two sides previously met in Geneva and London to address specific issues – triple-digit tariffs that amounted to a trade embargo and export controls on critical products – China's chokehold on rare earth magnets, and US restrictions on semiconductors.
A possible Trump-Xi meeting
Monday's discussions lasted nearly five hours behind closed doors at the office of Swedish Prime Minister Ulf Kristersson. Before the talks resumed Tuesday, Kristersson met with Bessent and US Trade Representative Jamieson Greer over breakfast.
The talks in Stockholm unfolded as President Donald Trump is mulling plans to meet Chinese President Xi Jinping, a summit that could be a crucial step toward locking in any major agreements between their two countries.
"I would say before the end of the year," Trump told reporters aboard Air Force One on Tuesday.
On his Truth Social media platform, Trump insisted late Monday that he was not "seeking" a summit with Xi, but may go to China at the Chinese leader's invitation, "which has been extended. Otherwise, no interest!"
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Bessent told reporters the summit was not discussed in Stockholm but that they did talk about "the desire of the two presidents for the trade team and the Treasury team to have trade negotiations with our Chinese counterparts."
Greer said the American team would head back to Washington and "talk to the president about" the extension of the August deadline and see "whether that's something that he wants to do."
Striking tariff deals
The US has struck deals over tariffs with some of its key trading partners – including Britain , Japan and the European Union – since Trump announced earlier in July elevated tariff rates against dozens of countries. China remains perhaps the biggest challenge.
"The Chinese have been very pragmatic," Greer said in comments posted on social media by his office late Monday. "We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations."
Since China vaulted into the global trading system more than two decades ago, Washington has sought to press Beijing to encourage more consumption at home and offer greater market access to foreign, including American-made goods.
Bessent said the "overall tone of the meetings was very constructive" while Li said the two sides agreed in Stockholm to keep close contact and to "communicate with each other in a timely manner on trade and economic issues."
Flagpoles at the prime minister's office were festooned with the American and Chinese flags.
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