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Reconfiguring the Global Economic Arena: China Strengthens Its Position and Prepares for New Trade Negotiations with the U.S.

Chas Pravdy - 27 July 2025 10:19

The world is witnessing renewed trade tensions between the two largest economies — China and the United States.
After prolonged periods of hostility and tough posturing, both sides are gearing up to sit at the negotiation table once again.
The upcoming round of talks scheduled in Stockholm at the end of July is poised to significantly influence the future of trade relations between these global powers.
According to CNN, China is solidifying its stance and preparing to secure further concessions from Washington.
A key development is Beijing’s initiative to establish a global organization focused on artificial intelligence collaboration, thereby enhancing its strategic impact on the world stage.
China continues to demonstrate its strength through control over strategic minerals essential for producing high-tech products, and actively works to lift trade restrictions, including regarding the export of critical AI chips from Nvidia.
Over recent months, China’s economy has shown growth rates exceeding expectations, emphasizing its resilience amid the ongoing trade conflict.
Meanwhile, Beijing reaffirmed its firm position during the summit with the European Union and intends to continue consultations with other trade partners to negotiate advantageous terms.
The U.S.
Treasury Department has indicated a potential extension of the 90-day trade ceasefire, initiated in Geneva in May, which avoided the threat of complete trade disruption between the world's two largest economies.
Experts predict that the new negotiations could reshape the situation, revealing how long this so-called “ceasefire” might last and whether the two countries can resolve complex issues such as technology export restrictions and sales of tech companies.
The discussions will also include topics like China's purchase of sanctioned oil from Russia and Iran, potentially leading to renewed tensions.
Particular attention is paid to the possibility of debating administrative measures against TikTok, which remains under international scrutiny.
Beijing advocates continuation of economic and trade consultations grounded in principles of mutual respect and cooperation.
The unresolved issue of tariffs remains critical, with China primarily seeking the removal of the 20% tariffs related to fentanyl and easing export controls on vital technologies.
Experts highlight China's intention to leverage its “cards,” which include dependency of the U.S.
on Chinese rare-earth elements, supply chain control over high-tech components, and potential influence through entities like TikTok.
Regarding energy imports, the U.S.
plans to impose 100% secondary tariffs on countries purchasing Russian oil — likely affecting China and India as well.
China dismisses these threats as unjustified and emphasizes its commitment to protecting its strategic interests, continuing energy imports from Russia and Iran despite potential sanctions.
Analysts warn that while such diplomatic clashes do not eliminate underlying contradictions in the global economy, these conflicts are shaping a new world order and influencing its future development.

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