A MARTÍNEZ, HOST:
The U.S. and China are meeting for the latest in a series of ongoing trade talks, this time in Stockholm, Sweden. And just this morning, the Financial Times is reporting that the Trump administration will freeze restrictions on technology exports to China to avoid hurting trade talks. From Taipei, Jan Camenzind Broomby has more.
JAN CAMENZIND BROOMBY: The latest round of trade talks come ahead of an August 12 deadline that would see tariffs between the nations once again skyrocket. They follow a meeting in Geneva in May that enforced a so-called 90-day tariff truce. The negotiations will have big implications for the economies of both nations.
YU JIE: Both side have some kind of a hostage held against each other.
BROOMBY: That's Yu Jie, a senior research fellow at the Chatham House think tank. She says both countries have leverage over each other.
YU: From Beijing's side, tightening the export control towards critical minerals is the trump card, whereas on the other hand, I think from the U.S. side, the tightening export control towards high-end technology export, these are the things which United States can also cutting off from China. So I think the stakes enormous. It's only a matter of time. The two sides need to find a mechanism that work with each other.
BROOMBY: The U.S. hopes it can push China to reduce what Washington sees as excess production and a focus on manufacturing and push Chinese domestic consumers to increase spending, something Beijing has also focused on. But despite the high stakes, both sides are unlikely to make major breakthroughs this week. William Yang, senior Northeast Asia analyst for the Crisis Group, explains they may instead hope to keep the ball rolling as they hash out further details.
WILLIAM YANG: The immediate goal for both sides will be to try to extend the trade truce that they have reached. Both sides realize that the structural issues that remain in the bilateral trade relationship will require a much longer and complicated process.
BROOMBY: Also on the cards, a potential meeting between Chinese President Xi and President Trump. That has been floated numerous times in recent months. Yu says talks in the Swedish capital could therefore pave the way for a one-on-one summit between the two leaders.
YU: If the talk has gone very well, this would actually increase the potential the two leaders will meet more sooner than later.
BROOMBY: But relations remain delicate, and the focus for now is on finding a compromise that avoids a return to sky-high tariffs.
For NPR News, this is Jan Camenzind Broomby in Taipei. Transcript provided by NPR, Copyright NPR.
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