The US and China plan to extend their trade war truce for 90 days to conduct new negotiations in Stockholm.
Current Situation in Trade Negotiations
According to the South China Morning Post, the US and China are set to begin another round of negotiations in Stockholm. These discussions aim to stabilize one of the world’s most important economic relationships and build on previous talks held in Geneva and London.
Issues Surrounding Fentanyl Exports
The discussions will not only address tariff policy but also threats to restrict fentanyl exports, a potent synthetic opioid. The Chinese delegation will demand the US administration remove tariffs on components used to make fentanyl, arguing that such tariffs hinder collaborative efforts to combat illegal drug flows.
Prospects and Consequences of the 90-Day Truce
Should the truce materialize, it would offer both sides an opportunity to address more complex issues such as intellectual property protection and digital trade. However, the success of the negotiations largely hinges on both countries' political will. It is important to note that the 90-day period is not a permanent solution but merely a window of opportunity.
The discussions in Stockholm could determine whether the two largest economies in the world are on a path toward renewed cooperation or if they are merely postponing the next confrontation.
