The offshore yuan steadied around 7.16 per dollar on Monday, as investors awaited the third round of US-China trade talks.
The meeting, set to take place later today in Stockholm, will involve US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
Bessent expressed optimism that the negotiations could lead to an extended truce, with discussions expected to cover a broader agenda beyond tariffs, including China’s energy imports from Russia and Iran.
Meanwhile, reports suggest both countries are likely to extend their tariff truce by another three months, with one source noting that neither side plans to impose new tariffs during this period.
Domestically, China’s fiscal revenue dipped slightly in the first half of 2025, while government spending continued to rise.
Moreover, industrial profits declined further, deepening from the previous month amid persistent deflation and evolving US trade tensions.
