High-level US-China trade talks kick off in London amid strained economic ties.
The United States and China have resumed top-level trade negotiations in London starting Monday. These new discussions aim to save what’s left of a shaky agreement and tackle major issues that have kept the two nations locked in a bitter trade standoff.
This fresh round of dialogue follows a direct phone conversation between President Donald Trump and his Chinese counterpart Xi Jinping. Trump later described the exchange as “very good,” suggesting that it helped pave the way for what he called a “positive outcome” for both nations.
Top Trade Officials Meet Under Economic Mechanism
Representing the US in the negotiations are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. From China’s side, Vice Premier He Lifeng is attending, with his London visit scheduled through June 13. The talks are being held under the officially recognized “China-US economic and trade mechanism,” a platform created to manage ongoing economic relations.
Tariff Truce Offered Breathing Room
Back in May, the two countries reached a short-term agreement during a meeting in Switzerland. The US agreed to ease some of its tariffs, cutting them to 30%, while China responded by reducing its own import duties to 10% and promised to lift restrictions on crucial mineral exports. The understanding came with a 90-day timeline to finalize a larger trade pact.
Both Sides Accuse Each Other of Breaking the Deal
However, progress since then has been rocky. President Trump accused China of going back on its word, while Chinese officials fired back, blaming the US for violating the terms set in Geneva. At the center of the fallout are disagreements over rare earth materials and other critical resources used in technology and manufacturing.
These minerals, essential to industries like electronics and electric vehicles, have been used as leverage. The US had earlier blocked high-end tech exports to China, including semiconductors. In return, China tightened control over rare earth exports, a resource where it holds around 70% of global dominance.
Rare Earth Shipments Resume — But Not Fully
Over the weekend, Beijing announced it had started granting some rare earth export licenses, though it did not reveal where the minerals would go. Trump, on the other hand, said that Xi had agreed to resume these exports—something the White House sees as a major step toward any deal.
Still, according to US National Economic Council Director Kevin Hassett, the pace of rare earth exports remains below what the US believes was agreed upon in Geneva.
“The shipments are coming in faster than before, but still not enough,” Hassett stated.
China’s Trade Numbers Show Trouble at Home
On Monday, new figures from China’s economy showed a mixed picture. While exports in May rose 4.8% compared to the same month last year, imports dropped sharply by 3.4%. Experts say this decline in imports points to deeper challenges within China’s economy, despite the recent softening of trade restrictions.
Critical Minerals and Tech to Dominate Talks
With the 90-day deadline ticking away, there is mounting pressure for both governments to deliver something concrete. According to Swetha Ramachandran, a fund manager at Artemis, the presence of Commerce Secretary Lutnick—known for his tough stance on technology controls—suggests that access to rare minerals and high-tech goods will be central topics.
“There’s enough on the table for both countries to get something out of this,” she told the BBC.
Uncertain Future as Talks Begin
As these crucial meetings unfold, the world watches to see if this round will bring lasting peace or simply delay another round of economic tit-for-tat. The stakes are high, with businesses and global markets hoping for a solution that benefits both powerhouses without deepening divisions.
