#USChinaTradeTalks US-China trade talks have been heating up, with both countries exploring possibilities of a tariff deal. Here's the latest:

*Recent Developments*

- *Talks Resumption*: US-China trade talks resumed in London, with both sides aiming to ease tensions and potentially reach a comprehensive agreement.

- *Tariff Negotiations*: The US has approached China seeking talks on Donald Trump's 145% tariffs, which China views as "tantamount to bullying".

- *China's Position*: China is open to talks based on "equality, respect, and mutual benefit", but wants the US to show sincerity and correct its "wrong practices".

- *US Goals*: The US seeks to revisit China's failure to meet purchase commitments under the 2020 "Phase 1" trade deal.

*Challenges and Stakes*

- *High Tariffs*: Both countries have imposed high tariffs, with the US tariff rate at 145% and China's at 125%, which need to be de-escalated for negotiations to progress.

- *Domestic Pressures*: Both leaders face domestic challenges, with Trump dealing with recession fears and Xi addressing low consumer spending, a property crisis, and rising unemployment.

- *Market Impact*: The outcome of these talks could significantly impact markets, with potential implications for global economic stability.¹

*Expert Insights*

- *Ja Ian Chong*: An assistant professor at the National University of Singapore notes that neither side wants to appear as the one conceding, but a reduction in tensions would benefit both parties.

- *Wen-Ti Sung*: An expert affiliated with the Australian Centre on China in the World likens the situation to two race cars heading towards each other, where the first to veer off course will be perceived as weaker.