Treasury Secretary Scott Bessent described the recent U.S.-China trade negotiations held in Sweden as “very constructive,” signaling a potential thaw in economic tensions between the world’s two largest economies.

Speaking to reporters on Tuesday, Bessent expressed optimism about the talks, emphasizing that both sides showed a willingness to engage in practical dialogue. He added that Chinese negotiators appeared “surprised by the magnitude of the Japan deal” and also by “the magnitude and the terms of the European deal,” referring to recent high-impact trade agreements the U.S. has reached with key allies.

The remarks suggest that the success of these prior deals may have shifted the dynamics of U.S.-China discussions, potentially giving Washington greater leverage.

While no final agreements were announced, officials say follow-up talks are expected in the coming weeks as both sides work to resolve outstanding issues ranging from intellectual property protections to tariffs.

The U.S.-China relationship has been under intense scrutiny in recent years, with trade, technology, and security all shaping a complex and evolving bilateral agenda.