U.S.-China Economic Talks: Revival in Stockholm Amidst Trade War Tension

Senior U.S. and Chinese officials are gathering in Stockholm on Monday to resurrect discussions addressing the longstanding economic disputes at the heart of the persistent trade conflict between the two global powers. The primary objective is to extend the existing tariff truce by three months, avoiding the resurgence of heightened tariffs.

With an approaching August 12 deadline, China is under pressure to secure a sustainable tariff agreement with President Donald Trump's administration following preliminary deals earlier this year. Failure to do so could plunge global supply chains into chaos due to potentially steep U.S. tariffs equating to a virtual trade embargo.

While recent negotiations include the U.S.-EU deal offering a blueprint for future discussions, anticipation remains muted for a significant breakthrough in the U.S.-China talks. However, analysts suggest a 90-day extension of the truce is probable, setting the stage for a possible Trump-Xi meeting later in the year.

(With inputs from agencies.)