In a bid to de-escalate ongoing trade tensions, top officials from the United States and China are meeting in London for a fresh round of negotiations aimed at resolving a complex trade dispute that continues to rattle global markets.
Leading the American delegation is Commerce Secretary Howard Lutnick, alongside Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. On the Chinese side, Vice Premier He Lifeng is at the helm of discussions, with rare earth exports and access to critical US technologies topping the agenda.
This high-stakes dialogue follows a recent phone call between US President Donald Trump and Chinese President Xi Jinping, which Trump described as “very good.” It was their first direct conversation since the trade war began in February and helped lay the groundwork for the London talks.
Last month’s negotiations in Geneva led to a temporary tariff truce, with Washington reducing its tariffs on Chinese goods to 30%, while Beijing slashed levies on US imports to 10% and pledged to ease restrictions on rare earth exports. However, both sides have since accused each other of breaching the agreement.
Rare earth minerals, vital for the production of smartphones, electric vehicles, and military equipment, remain a sticking point. China currently controls around 69% of global production, giving it a powerful bargaining chip. US officials are pressing Beijing to fulfill its Geneva promise to increase exports of these critical materials.
Meanwhile, China is pushing back against what it calls “negative measures” taken by the US, including export bans on semiconductor technologies and advanced chip design software. Chinese firms, particularly tech giant Huawei, have been at the center of American export controls.
Commenting on the importance of the talks, fund manager Swetha Ramachandran of Artemis noted that Lutnick’s involvement brings weight to the negotiations. “Some of the focus certainly seems to be on rare earths,” she said. “There are enough chips on the table here for both sides to walk away with acceptable outcomes.”
Beijing has recently approved a limited number of export licenses for rare earths, though it has not disclosed which countries will benefit. Trump, however, said Xi agreed to restart rare earth trade—an assertion that US officials say is only partially being fulfilled.
Ahead of the London meeting, Vice Premier He also held discussions with UK Chancellor Rachel Reeves. He emphasized the importance of strengthening UK-China ties in economic and financial areas. One issue of note is China’s plan to build a new embassy near the City of London, a move that has reportedly raised security concerns from Washington.
On the sidelines, the UK is finalizing its own trade deal with the US, with a deadline set for July 9. Failure to reach an agreement could see British steel exports hit with steep tariffs at American ports, further straining transatlantic trade.
As these talks unfold, global economic forecasts remain bleak. The Organization for Economic Co-operation and Development has lowered its global growth forecast to 2.9%, citing the rise in trade barriers and warning that nearly every country will feel the strain of prolonged economic uncertainty.
