Implications for future deal with China

In the details and we don't have any details," said a source, who spoke on the condition of anonymity because he advises American companies engaged in business with China.

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But the Japan agreement signals that the US is expecting purchase agreements in trade deals and that has huge significance for a highly anticipated visit to China by Mr Trump, he added.

During a press conference alongside Mr Marcos, Mr Trump hinted at a visit to China "not too far into the future" to meet Chinese President Xi Jinping. But no firm date has been set yet, and Chinese imports could be subject to tariffs higher than 50 per cent unless new agreements are reached.

China's Commerce Ministry announced on July 23 that Vice-Premier He Lifeng will be in Sweden on July 27-30 for trade talks with US officials, after US Treasury Secretary Scott Bessent announced on July 22 the Stockholm negotiations.

"Many of us are wondering if there will be a focus on purchase agreements similar to the phase one trade deal with China in Trump's first term," said the source.

The huge investment component in the Japan deal has also sparked the idea that a deal with Beijing might involve large investment commitments from China.