• The US and China concluded trade talks in Stockholm without significant breakthroughs.
• Both nations agreed to extend the current tariff truce by 90 days, pending US President Trump’s approval.
• China's position appears stronger as the US raises tariffs on other trading partners.
• Discussions centered on broader trade issues and geopolitical tensions, including China's ties with Russia.
• Analysts predict a shift toward more indirect negotiations involving third-party countries.

The latest round of trade talks between the US and China ended in Stockholm without any major breakthroughs, as both sides leaned on the term "constructive" to describe the discussions. The negotiators addressed significant economic issues, including the US's demands that China expedite the export of critical minerals and the ongoing situation with tariffs, particularly on Chinese goods. US Treasury Secretary Scott Bessent indicated that the future of the 90-day tariff truce, set to expire soon, ultimately rests with President Trump, noting that "nothing is agreed until we speak with President Trump," thus highlighting the precarious nature of the current negotiations, according to BBC.

Despite the lack of granular concessions from both sides during the talks, analysts suggest that China may have emerged in a stronger negotiating position as the US contemplates raising tariffs on other countries. The US is set to impose significant tariffs on imports from Southeast Asian countries, which could lessen the relative impact of its tariffs on China. Amitendu Palit, a researcher at the National University of Singapore, remarked on this shifting dynamic, emphasizing that the comparative disadvantage China faces is diminishing as the US implements higher tariffs elsewhere, potentially altering direct US-China trade flows, according to SCMP and Newsweek.

As part of the agreement, both sides have considered extending the existing tariff truce for another 90 days, while US Trade Representative Jamieson Greer acknowledged that higher tariffs on goods from China could still be on the table. Analysts speculate that this ongoing trade discourse may lead to new economic alignments in the global order, as both nations increasingly engage with third-party countries to bolster their respective negotiating positions. The new approaches signal a shift to what some describe as "indirect forms of negotiation," aiming to enhance their influence on the global stage, per insights from SCMP and SCMP.

Trade relationships are further complicated by the backdrop of geopolitical tensions, particularly regarding China's interactions with Russia and Iran. The US has sought to limit China's economic connections, emphasizing a defensive strategy against perceived threats. Bessent's comments following the talks highlighted the administration's focus on safeguarding US economic strategies. Additionally, the US has made moves to impose sanctions as part of a broader effort to control China's influence, leading to a complex landscape of negotiations where both nations are constantly recalibrating their bargaining chips, according to Newsweek and SCMP.

Looking ahead, both Washington and Beijing appear to be navigating a landscape fraught with competition and uncertainty. As the US aims to reduce reliance on China through various trade alliances, China continues to leverage its Belt and Road Initiative to create economic partnerships in emerging markets. Experts predict that these ongoing strategies reflect a significant pivot in global trade policies, reshaping future negotiations in ways that might favor cooperation over direct confrontation, marking a notable evolution in the trade relationship between the two superpowers, according to SCMP and SCMP.