The US & EU have reached a trade deal, but don't expect it to be a framework for China

US-China Trade Negotiations - US-China trade talks in Stockholm focus on market access, with the US seeking greater openness from China [2][3] - A key concern is the potential reinstatement of tariffs, currently at 30%, with an August 12th deadline [3] - An extension of the tariff deadline by potentially 90 days is anticipated to allow for continued negotiations [4] - A meeting between President Trump and President Xi Jinping later in the year is expected if progress is made [5] - Currency manipulation is one of many complicated issues to be addressed in the coming weeks [6] EU-US Trade Agreement & Geopolitical Implications - The EU-US trade agreement is seen as a positive geopolitical moment, uniting the US and its allies to counter China's rise [17] - The agreement signals that increasing trade is in the mutual interest of the US and the EU, even with some tariffs and trade restrictions [18] China's Trade Strategy - China has retaliated against US tariffs more resolutely than the EU [7] - China is aware of US dependence on Chinese inputs and can strategically retaliate through export controls [8] - China aims for self-sufficiency and self-reliance, diversifying trade away from the US and developing non-dollar-based financial infrastructure [20] - China seeks a tactical agreement for relaxation of export controls in the short term [20] - China's long-term goal is market domination with cheaper, better, and higher indigenous tech content [20] Investment & National Security Concerns - The US has concerns about Chinese investment in certain areas, particularly those related to national security [10] - The US aims to normalize trade with China in "below the line" areas (normal goods), while restricting trade in "above the line" areas (national security, armaments, chips) [11][12] Other Factors - The status of export licenses for rare earths and chips needs to be resolved to normalize trade relationships [14] - Potential secondary sanctions or tariffs related to Russia and oil are being closely watched by China, a major consumer [23][24]