There are a significant developments in the complex relationship between the United States and China, marked by ongoing trade negotiations in Stockholm, assertive diplomatic exchanges, and a firm stance from Beijing on issues it considers core interests.

Stockholm Trade Talks: Seeking a Tariff Pause Extension

Top trade officials from the U.S. and China convened in Stockholm, Sweden, for a new round of talks aimed at easing trade tensions between the world’s two largest economies. 

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led the discussions, which are the third of their kind this year.

A key objective of the Stockholm meeting is to extend a crucial 90-day pause on reciprocal tariffs that is set to expire on August 12. During this pause, U.S. tariffs on Chinese goods were lowered to 30%, and China imposed a 10% tariff on U.S. products. Analysts widely expect an agreement to at least maintain these current tariff levels, potentially paving the way for a more comprehensive trade deal and a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year.

Beyond tariffs, the agenda for the Stockholm talks reportedly includes discussions on market access for American businesses in China, Chinese investment in the U.S., controlling the flow of fentanyl components from China to the U.S., Chinese purchases of Russian and Iranian oil, and U.S. restrictions on technology exports, such as advanced chips.

China’s Strong Rebuttal on Taiwan and Scholarly Detention

Amidst the trade negotiations, China issued strong diplomatic protests on matters it views as undermining its sovereignty and national security.

The Chinese Foreign Ministry expressed “strong dissatisfaction and firm opposition” to Japan’s decision to allow Lin Chia-lung, the head of Taiwan’s “foreign affairs department,” to visit the country in a “personal capacity.” Beijing views such actions as providing a platform for “Taiwan independence” forces and a violation of the “One China” principle, which China considers an inviolable red line. 

The Chinese Embassy in Japan also lodged solemn representations, emphasizing that any political manipulation on the Taiwan question will not be tolerated.

Separately, China condemned the “unreasonable detention” of another Chinese scholar by U.S. law enforcement agencies. Chinese Foreign Ministry Spokesperson Guo Jiakun stated that the U.S. is “overstretching the concept of national security” and “frequently harassing, questioning, and detaining Chinese students and scholars.” Beijing urged Washington to cease what it called “presumption of guilt” and “political manipulation,” and to ensure the legitimate rights and interests of Chinese citizens in the U.S.