FX.co ★ Offshore Yuan Steady as US-China Talks Loom

The offshore yuan stabilized near 7.16 per dollar on Monday as investors anticipated the third round of US-China trade discussions. Scheduled to occur today in Stockholm, the talks will feature US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Bessent expressed optimism that these negotiations could result in an extended ceasefire, with the agenda extending beyond tariffs to include China’s energy imports from Russia and Iran. Reports indicate that both nations are inclined to prolong their tariff truce for an additional three months, with sources confirming that neither party intends to introduce new tariffs during this timeframe. On the domestic front, China's fiscal revenue experienced a slight decline in the first half of 2025, while government expenditures continued their upward trend. Additionally, industrial profits saw a further decrease, exacerbating last month's decline amid ongoing deflationary pressures and evolving US trade tensions.