As nations around the world grapple with higher tariffs, the fate of China’s economic future with the US remains uncertain, leaving one of the world’s most important trade relationships in limbo.

Despite a two-day meeting with Chinese and American negotiators this week in Stockholm, the two economic giants have yet to agree on a deal to prevent tariffs from soaring to significantly elevated levels.

While diplomats from both nations have portrayed the discussions in a positive light, US Treasury Secretary Scott Bessent stressed that any decision to extend a pause on tariffs will come from President donald trump.

Why their trade conversations are tricky: Unlike Canada, the European Union, Japan and South Korea — all longtime American allies — the Sino-US relationship is adversarial.

The issues clogging the conversations extend far beyond financial arrangements. Both nations hold resources and technology viewed as crucial to their respective security and stability.

This includes China’s vast reservoirs of rare earth minerals, substances American firms need to build everything from electronic device, lighting and electric vehicles.

China’s manufacturing strength is also leaving a palpable impact on American consumers through higher costs and reduced merchandise, thanks to US tariffs already in place.

American companies, including tech giant Nvidia, hold chip technology that’s crucial in powering AI-related platforms.

Beyond economics, there’s also ego: Chinese leader Xi Jinping is balancing a fragile domestic economy, yet can’t risk any appearance of caving in to trump and American demands.

And Trump is notoriously mercurial – just look at how he threatened Canada yesterday as soon as Ottawa announced plans to recognize a Palestinian state.

Still, both leaders seem keen on a face-to-face meeting.

How they tackle their deep divides on trade will reshape the global economic system.