U.S.-China relations: China expresses hope for favorable trade results
The ongoing trade tensions between economic superpowers China and the United States continue to have a significant impact on global trade. The 90-day trade truce, agreed upon in May, is due to expire on August 12, and no specific details about an extension have been disclosed yet.
In a recent statement, China's foreign ministry spokesman, Lin Jian, expressed hope that the US will work with China to reach a deal based on equality, respect, and mutual benefit. Similarly, US Trade Representative Jamieson Greer stated that President Trump will have the "final say" on any extension of the tariffs truce.
Last month, China and the United States held talks in Stockholm to discuss extending the trade truce. However, no definitive decision regarding the extension was reached.
In June 2025, a preliminary agreement was reached, with China easing restrictions on rare earths, marking progress in bilateral trade negotiations led by the US Department of the Treasury, Commerce, and USTR. Despite this, the reciprocal tariffs on Chinese imports remain in place but with some delays and modifications.
One significant modification includes a suspension of China's country-specific tariff rate from August 11 to November 10, 2025, where a 10% baseline tariff applies instead.
The US administration has also frozen some technology export restrictions to avoid jeopardizing these trade talks. However, additional tariffs remain authorized to address trade and national security concerns pending further negotiations.
As the trade negotiations continue, the ongoing tensions are influencing trade policies worldwide. Higher tariffs, including a 35% tariff on Canada, were implemented on Thursday as part of Trump's efforts to reshape global trade in favor of the US economy.
China hopes for positive outcomes in the trade negotiations with the United States. Despite the uncertainties, both countries are working towards a deal to lower trade tensions and foster a more balanced and beneficial trade relationship.
- The ongoing trade negotiations between China and the United States are not only influencing their respective business environments but also impacting the global index of finance, as other countries adjust their trade policies in response to the general-news developments.
- Amidst the political standoff, the US Administration has shown flexibility in adjusting certain trade regulations, such as temporarily suspending technology export restrictions and modifying reciprocal tariffs on Chinese imports, in an attempt to advance negotiations.
- As part of its strategic finance and trade planning, China is actively considering opportunities in the global market, focusing on trading goods that are not subject to the ongoing tariffs, such as rare earths, to maintain a balanced and mutually beneficial business relationship.
