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US–China trade truce holds, but for how long?
A year after the ‘Liberation Day’ tariffs, the US–China trade relationship looks more peaceful than many expected. The constraints of mutual dependence have proven strong enough for both parties to keep the trade-war ceasefire. President Donald Trump’s Beijing visit in May reinforced that impression, with both sides agreeing to build a ‘relationship of strategic stability’. But as long as China perpetuates its overdependence on external demand, this can only be a stalemate, not a true end of hostilities. Other countries, meanwhile, may become more active in seeking to counter China’s manufacturing ... (full story)