Chinese and American delegations began new discussions on reciprocal customs duties on Monday, which could lead to an extension of the pricing truce.
The Swedish Prime Minister, Ulf Krissels, welcomed the representatives of the two main world economic powers at the start of the afternoon in the Rosenbad building, where his cabinet found, AFP journalists have noted.
Shortly after, his spokesperson told AFP that the talks had started.
Starting in the aftermath of a trade agreement concluded between Americans and Europeans, this 3rd cycle of Sino-American negotiations must last almost two days.
Beijing said Monday hoping that they will be held in a spirit “of mutual respect and reciprocity”.
China intends to “reduce misunderstandings, strengthen cooperation and promote stable, healthy and sustainable development in Sino-American relations,” said a spokesperson for the Ministry of Foreign Affairs, Guo Jiakun, at a regular press conference.
The discussions in Stockholm aim to extend the 90 -day break negotiated in May in Geneva, which had ended reprisals on both sides of the Pacific who cause prohibitive surcharge.
The objective should be achieved, according to the Chinese daily South China Morning Post, which revealed Sunday that the truce should be extended by an additional 90 days.
These talks took place at the start of a decisive week for President Donald Trump’s trade policy, the customs duties applied to most of the United States’s main business partners having to know a sudden increase on August 1.
As it stands, products entering the United States could be taxed between 10% and 50% – the highest rate would target Brazil, while Canadian and Mexican neighbors would receive a surcharge of 35% and 30%, respectively.
What increase the average customs duties applied to imported products, already at its highest level since the early 1930s, according to data from the Lab Budget Research Center of the University of Yale.
Beijing could feel privileged: certainly, its products collect 30% surcharge in addition to customs duties in place before January 1, but the truce allows them to escape new surcharge for the time being.
Relaxation seems to be started and “a significant development seems to appear in the (American) government approach to China,” said Minerva’s strategy, Emily Benson for AFP.
US officials are now “concentrated on what is achievable, to put oil in the cogs and avoid new tension subjects,” she adds.
15% for the EU
For the time being, no agreement has been reached between the two capitals, but progress has been made on subjects deemed essential on both sides.
Washington thus obtained a relaxation of the export restrictions of the Chinese rare earths when Beijing saw its access to the most efficient American semiconductors being partly restored.
An extension of the truce would indicate a “will to continue to discuss on both sides”, according to Thibault Denamiel, researcher for the CSIS in Washington.
While waiting for the next step: a meeting between Donald Trump and his Chinese counterpart Xi Jinping.
In the immediate future, the markets react positively on Monday, after the conclusion of commercial negotiations between the United States and the European Union (EU).
At the end of a meeting between Donald Trump and the president of the European Commission in Scotland, the American president announced Sunday that the EU had agreed to be imposed 15% of customs duties and undertook to invest $ 600 billion in the United States, with no details on the deadline.
A “good agreement, which will bring stability and predictability” on both sides of the Atlantic, assured Ursula von der Leyen.
Nevertheless, Washington has not yet managed to win only five other trade agreements – and more often declarations of intention than formal agreements.
Indonesia, Japan, the Philippines, the United Kingdom and Vietnam have so far been able to get along with Washington and given their reduced potential customs duties, a priori between 15 and 20% for most of them.
For the other countries, August 1 will have to mark the entry into force of the surcharge announced by Donald Trump.
This article was published automatically. Sources: ATS / AWP / AFP
