The United States and China wrapped up the third round of high-level trade negotiations earlier this week. American and Chinese negotiators met in Stockholm on July 28 and 29. US Treasury Secretary Scott Bessent described the talks as constructive and wide ranging. He acknowledged that an extension of the 90-day tariff pause was discussed but said that the final decision was up to President Trump.  As of today – August 1 – Trump has remained mum. The Chinese side’s readout was devoid of details, although China’s vice minister of commerce said that both countries would continue to push for an extension of the reciprocal tariffs and Chinese countermeasures.

How should we assess the dynamics in the trade talks, including the balance of leverage between Washington and Beijing? And how might the trade negotiations shape the future of the US-China relationship? To discuss these questions, we are joined by Dr. Scott Kennedy. Scott is senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies. 

Timestamps

[00:00] Start

[02:06] Lessons Learned from Trump’s First Administration

[05:20] Chinese Outlook on Future Economic Policy

[09:28] Who’s Winning the Trade War?

[14:30] China’s Reactions to Transshipment Provisions

[18:18] Bessent's Rebalancing Plans 

[24:14] Challenges to Chinese Investment in the US 

[29:15] China's Trade Deal Goals