US firms race to revive China ties before Trump tariff hike: SCMP

US firms race to revive China ties before Trump tariff hike: SCMP

US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington. Photograph: (Reuters)

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A high-profile US business delegation led by FedEx CEO Rajesh Subramaniam is set to visit China this week amid rising trade tensions and an impending August 12 deadline for a new deal.

A high-powered US business delegation led by FedEx CEO Rajesh Subramaniam will reportedly visit China this week, according to a South China Morning Post (SCMP) report cited by Reuters. The visit comes as trade tensions escalate ahead of a looming August 12 deadline set by US President Donald Trump for a new bilateral agreement. The delegation reportedly represents the US-China Business Council (USCBC) and is expected to meet senior Chinese officials in Beijing. The USCBC includes over 200 American companies operating in China.

Boeing, FedEx, USCBC to join Beijing mission

As per SCMP, the delegation will include Boeing executives and USCBC President Sean Stein. “They are expected to meet with Chinese officials – potentially to revive business discussions,” a source familiar with the visit told SCMP. Reuters could not independently verify the full itinerary, or the names of officials involved.

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The USCBC has not responded to a request for comment, Reuters reported. The timing of the visit coincides with a new round of US-China economic talks in Stockholm from July 27–30, led by China’s Vice Premier He Lifeng and top US trade officials.

Trump’s tariff clock is ticking

President Trump has set August 12 as the deadline for a durable trade agreement with China. Failure to reach a deal could trigger a steep hike in tariffs, including new duties on Chinese electric vehicles, batteries, and consumer goods. The US has accused Beijing of failing to meet trade commitments and of supporting industrial overcapacity, while China has criticised Washington’s use of tariffs as leverage.

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According to SCMP, the two governments are also exploring the possibility of a visit by President Trump to China later this year. While no official confirmation has been made, such a visit could mark a significant shift in tone after months of escalating rhetoric.

A delicate business recalibration

The USCBC’s engagement is seen as a signal that US corporations are seeking to stabilise commercial ties amid growing policy risk. The business council’s move comes as American firms face increased uncertainty in China due to regulatory crackdowns, supply chain decoupling, and strategic sector controls.

While the full agenda of the visit remains confidential, analysts say the delegation may lobby Chinese officials to ease restrictions and avoid retaliatory measures that could hurt US firms operating in the region. As per Reuters, the Stockholm round of talks and the Beijing business outreach represent parallel tracks in what remains a fragile diplomatic window, one that could define the next phase of US-China economic engagement.

(With inputs from the agencies)