US-China Trade Talks Resume for a Second Day in London

 

US-China Trade Talks Resume for a Second Day in London Top U.S. and Chinese officials are continuing trade negotiations in London on Tuesday, aiming to reach a breakthrough on export controls for critical goods such as rare earths. These goods are vital to industries like autos, aerospace, semiconductors, and defense, and current restrictions threaten global supply chains and economic growth. The talks follow a preliminary trade deal agreed upon last month in Geneva, but tensions have resurfaced, especially over China's restrictions on exports. Recent data shows China's exports to the U.S. dropped by 34.5% in May; the steepest decline since February 2020.

U.S. officials involved include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. The Chinese team is led by Vice Premier He Lifeng. The inclusion of Lutnick highlights the importance of rare earth elements, which China largely controls and are essential for electric vehicle motors and other technologies. Both sides are seeking to prevent further disruptions that could impact global markets. This second round of talks comes shortly after a phone call between President Trump and Xi Jinping, where China reportedly agreed to resume shipments of rare earth minerals to the U.S. Tensions remain over export restrictions, with global manufacturers concerned about material shortages.

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