As the August 12 trade deadline looms, China's Vice Premier He Lifeng will travel to Stockholm, Sweden, from July 27-30 for high-level talks with U.S. Treasury Secretary Scott Bessent, the Chinese Ministry of Commerce confirmed on Wednesday. The goal: prevent a new wave of U.S. tariffs and reinforce a tentative trade truce that's been in place since May.

This will be the third meeting between He and Bessent, following earlier rounds in Geneva and London, as both sides work to redefine the U.S.-China economic relationship and avoid the escalation that defined previous years of trade hostilities.

Talks will be guided by the principles of "mutual respect, peaceful coexistence, and win-win cooperation," Beijing said in a statement, emphasizing its intention to keep diplomacy on a steady path.

A Fragile Truce Under Pressure

Since mid-May, negotiations have focused on rolling back retaliatory tariffs-some of which reached triple-digit levels under the Trump administration. The White House's latest posture includes a pending tariff hike that could take effect if no durable agreement is reached by August 12.

Treasury Secretary Bessent, speaking Tuesday, described current trade dynamics as "in a good place" but acknowledged the need for further negotiation. "We're hopeful," he said, "but both sides know the clock is ticking."

In a sign of goodwill, Beijing suspended an antitrust investigation into DuPont China Group, a subsidiary of the U.S.-based DuPont. The probe, initiated in April following a fresh round of 34% tariffs on Chinese goods, had been viewed as a pressure tactic. Its suspension, announced Tuesday by China's market regulator, was interpreted as a conciliatory gesture ahead of the Stockholm meeting.

Broader Trade Signals from Beijing

China's Commerce Minister Wang Wentao echoed the conciliatory tone last week, calling for stable trade ties with the U.S. and stating that the European negotiations showed there was "no need for a tariff war."

Indeed, Beijing's tone has shifted notably in recent weeks, possibly in response to growing economic pressures at home and diplomatic pressure abroad. The Ministry of Commerce has taken a more pragmatic stance in the lead-up to these talks, aiming to de-risk its economic outlook without appearing to make excessive concessions.

The Stockholm summit comes as trade diplomacy accelerates globally. South Korea is pursuing its own high-stakes negotiation with the U.S. to match terms reached in the recent U.S.-Japan trade deal, while Europe continues to prepare retaliatory tariffs of its own.

The outcome of this week's China-U.S. session could influence not just bilateral trade, but also the trajectory of global supply chains, commodity pricing, and U.S. agricultural exports. Markets will be watching closely, especially sectors tied to chips, energy, and industrial goods, where both nations have deep, overlapping interests.