Top trade officials from the US and China are meeting in London to ease rising economic tensions, particularly around rare-earth minerals and advanced technologies. The talks follow a recent phone call between US President Donald Trump and Chinese President Xi Jinping, in which both leaders expressed a willingness to reset strained trade ties.
US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are representing the US, while Chinese Vice Premier He Lifeng leads the Chinese delegation. The London meeting revives the "China-US economic and trade consultation mechanism" and aims to build on the temporary Geneva agreement reached in May, where both sides agreed to reduce tariffs for 90 days.
Since Geneva, however, tensions have escalated again. Washington criticized Beijing for delaying rare-earth exports vital to US electric vehicles and defense systems, while China objected to new US restrictions on AI chips, software, and student visas. Although Beijing has since approved limited rare-earth export permits, the lack of clarity continues to fuel mistrust.
White House economic adviser Kevin Hassett emphasized the need for an uninterrupted flow of critical materials, adding that “technicalities must not stall progress.” Trump has hinted at easing tech restrictions, but no major breakthroughs are expected in London.
Experts suggest this round of talks is unlikely to produce a comprehensive resolution. The disputes go beyond trade, touching on deeper issues like technological dominance, data control, and national security.
While optimism is low for a quick deal, some analysts believe partial progress is possible. Xi, facing domestic economic pressures, appears open to reducing tensions. Still, both sides remain cautious, and the clock is ticking—Trump's tariff reprieve expires in August unless extended.
Despite the uncertainty, both governments acknowledge shared interests. As China’s state media put it: “The essence of the US-China relationship is mutual benefit and win-win cooperation.”