The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products.

China is now implementing social and childcare policies that will also boost spending. The recent announcement to give an annual childcare subsidy of 3600 yuan (about $500) until age three is a step in that direction.

By David Lawder and Greta Rosen Fondahn STOCKHOLM (Reuters) -Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes at the centre of a trade war between the world's top two economies,