\n<\/p>\n
The US and China have started a fresh round of talks as expectations grow that the world’s two biggest economies could agree a 90-day extension to their trade war truce.<\/p>\n
The meetings in Sweden – led on Washington’s side by Treasury Secretary Scott Bessent and for Beijing by Vice Premier He Lifeng – come hours after US President Donald Trump announced a framework tariffs deal with the European Union.<\/p>\n
The current 90-day truce between the US and China – which saw the two countries temporarily lowering tariffs on each other – is set to end on 12 August.<\/p>\n
Since Trump returned to the White House in January, the US and China had raised import levies on each other to more than 100%.<\/p>\n<\/div>\n
The current 90-day tariffs pause came after top officials from the US and China met in Geneva and London earlier this year.<\/p>\n
Last week, Bessent said talks with China were in “a very good place” and suggested the new round of talks could result in a second truce.<\/p>\n
On Monday, citing sources on both sides, the Hong Kong-based South China Morning Post<\/a> reported that the US and China are expected to extend the truce by another three months.<\/p>\n Meanwhile, the Financial Times reported that the US has frozen restrictions on technology exports to China to avoid hurting trade talks and help Trump secure a meeting with President Xi Jinping this year.<\/p>\n Technology exports, specifically chips used for artificial intelligence (AI), have been at the centre of the trade dispute.<\/p>\n US security officials have raised concerned that high-end US chips could be used by China’s military and help its companies in the race for innovation.<\/p>\n The BBC has contacted the US Treasury and the Commerce Department, and the Chinese embassy in Washington for comment.<\/p>\n The latest US-China talks come after Washington struck deals with both the EU and Japan in the last week.<\/p>\n On Sunday, Trump and European Commission President Ursula von der Leyen announced a trade agreement framework<\/a>.<\/p>\n It ended a months-long standoff between two of the world’s biggest economic partners.<\/p>\n Last week, Trump said Washington had agreed a “massive” trade deal with Tokyo.<\/p>\n Under the agreement, Japan would invest $550bn (\u00a3407bn) in the US while its goods sold to America would be taxed at 15% when they reach the country – below the 25% tariff Trump had threatened.<\/p>\n The US has also struck tariffs deals with the UK, Indonesia and Vietnam.<\/p>\n