China, U.S. Trade Talks Yield Hope for Stable Economic Ties

China Seeks Stable Trade Relations with U.S.

China's Commerce Minister Wang Wentao expressed optimism about stabilizing trade relations with the United States following constructive talks in Europe.

He emphasized the deep economic interdependence between the two nations, noting that recent negotiations in Geneva and London showed a tariff war is avoidable.

Wang urged the U.S. to act responsibly as a global superpower while affirming China's commitment to protecting its national interests.

Progress in High-Level Negotiations

With an August 12 deadline looming, both countries are working to finalize a durable tariff agreement after a preliminary deal last month.

Failure to reach an accord could disrupt global supply chains with duties exceeding 100%, impacting manufacturers' profit margins.

Wang highlighted that high-level dialogue has proven effective in managing differences and fostering cooperation for sustainable trade development.

Positive Signs in Trade and Technology

China's rare earths exports surged 32% in June, suggesting that recent agreements are facilitating smoother trade flows.

Nvidia's decision to resume H20 AI chip sales to China, as announced by CEO Jensen Huang, reflects progress in negotiations.

Wang noted that these developments indicate both sides recognize the challenges of decoupling, with current U.S. tariffs on China at 53.6% still posing concerns.