U.S. and China Prepare for Trade Talks in London on June 9

 

U.S. and China Prepare for Trade Talks in London on June 9 On Monday, representatives from the United States and China are scheduled to meet in London to discuss ongoing trade tensions between the two economic giants. The talks aim to ease some of the strains that have kept global markets on edge. U.S. officials set to participate include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, according to President Donald Trump, who announced the meeting on his Truth Social platform. However, the identities of China’s representatives have not been publicly confirmed, and the Chinese embassy in Washington has not responded to inquiries. Trump expressed optimism about the talks, tweeting, "The meeting should go very well."

This diplomatic move follows a rare leaders’ call between Trump and Chinese President Xi Jinping on Sunday, which took place amid escalating trade tensions and disputes over critical minerals. Both leaders agreed to visit one another and tasked their staff with holding talks in the meantime. The two countries are under pressure to reduce tensions. Globally, markets have been reacting to China’s dominance in rare earth mineral exports, crucial for producing modern technologies, and concerns over U.S. tariffs and trade restrictions. China itself has faced export restrictions on key U.S. goods like chip-design software. On May 12, the two nations reached a 90-day agreement in Geneva aimed at rolling back some tariffs imposed during Trump’s presidency. While this partial deal sparked a stock market rally, thus bringing U.S. indexes from near or in bear territory back, many broader issues remain unresolved, including the fentanyl trade, Taiwan’s status, and China’s economic model.

Since returning to office, Trump has threatened various punitive measures against trade partners but has often reversed these threats at the last moment, creating confusion among global leaders and business executives. China views its mineral exports as a leverage point. Curtailing these could pressure the U.S., especially if economic growth slows and industries face shortages of essential materials. In recent years, the U.S. has identified China as its primary geopolitical rival posing challenges both economically and militarily.

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