The negotiations between Chinese and American high-level officials on trade and tariffs matters hosted by the Swedish government in the capital Stockholm received global attention between July 28-30. The two largest economies of the world were discussing the extension of the “truce” on reciprocal tariffs which was reached earlier in two rounds of talks in London in May and in Geneva in June for 90 days more (from August 12) until a final agreement is reached, most likely by the leaders of the two countries President Xi Jinping and President Donald Trump at the end of the 90-day period. On June 5th, the two leaders held a phone call to initiate this truce in order to reduce the damage caused by President Trump’s “liberation day” April 2 universal reciprocal tariffs to global trade and supply chains. President Trump had to back down from this declaration after the U.S. financial markets, bonds markets, and U.S. dollar exchange markets were hit by a wave of dramatic declines.
Since the latest round of talks were held in the capital of Sweden, the Belt and Road Institute in Sweden (BRIX) was approached by leading Chinese media outlets such as Xinhua news agency, China Global Television Network (CGTN), and China News Service (ECNS) to share its views on the ongoing discussions and their implications.
Xinhua was the first to interview Hussein Askary, Vice-Chairman of the Belt and Road Institute in Sweden, on the just concluded EU-U.S. trade deal. Xinhua published a report based on that interview under the title Swedish expert says U.S.-EU tariff deal adds burden on Europe, in which Askary noted that this deal was not in the advantage of the EU nations. “Fifteen percent is still high for European companies that are used to a freer trade environment,” he said. “This is a compromise people are willing to accept, but it does not mean they like it,” He emphasized. “We are sacrificing other aspects of our economic agenda — infrastructure, healthcare and
education — in order to afford expensive American liquefied gas and other goods,” he said. He noted that economies like Sweden and Germany, heavily reliant on exports, are particularly sensitive to policy instability, such as the tariffs. “We need the free flow of goods, services and capital. That is essential for long-term planning, investment and continuity,” he said.
The Xinhua report was translated and posted in several countries in different languages (Swedish, German, Portugese, Hungarian, and Indonesian).
As for the China-U.S. negotiations, Askary participated in a popular show on CGTN, The Point with Liu Xin, titled Progress in Stockholm, but more U.S. tariffs on the way? The TV program featured the legendary Victor Zhikai Gao, chair professor at Soochow University Victor Zhikai Gao and vice president of the Center for China and Globalization (CCG), and Dr. John Quelch, executive vice chancellor and professor at Kunshan Duke University. The Swedish media outlet Newsvoice published a summary of the discussion in both English and Swedish which it presented the views and expectations of the guests on the negotiations in Stockholm.
Regarding the issue of Sweden-China and EU-China trade relations and economic cooperation, Xinhua interviewed Askary again and produced a report titled Economic Watch: Swedish businesses eye deeper cooperation with China as EU-China ties turn 50 in which he and another guest, Mr. Ulf Pehrsson, chairman of Sweden-China Trade Council (SCTC), emphasized the interdependence between Sweden and China and EU and China on economic matters. Hussein Askary said that sectors like clean energy, where China has clear competitive advantages, should be regarded as opportunities for collaboration between the EU and China rather than competition. Askary cited the collapse of Swedish battery startup Northvolt as a case in point. “Just one year into operation, the venture, which cost Sweden and the EU billions of euros, went bankrupt. That proves the ‘de-risking’ narrative does not work in practice,” he said.
Rather than disengagement, Askary emphasized the need to build on complementary strengths across regions. He noted that while China leads in clean technology, Sweden retains a competitive edge in sectors such as biotechnology, and many Chinese firms are actively seeking collaboration.
“That’s the win-win formula Europe needs,” rather than pursuing protectionist approaches seen in certain advanced economies that advocate decoupling and trade barriers under the guise of national security, he added.
The Belt and Road Institute in Sweden is increasingly stressing the importance of finding common ground and mutual understanding between China and the EU and East and West/North and South to avoid geopolitical tensions and move towards more cooperative mode of global governance. The fact that its views are finding resonance in international media is sign of hope.