US-China Trade Talks Resume in London Amidst Ongoing Tensions
High-level negotiations aim to extend trade truce as export concerns and rare earth shipments dominate discussions.
On June 9, 2025, the United States and China commenced a new series of trade negotiations in London, following a previous agreement made in Geneva aimed at reducing mutual tariffs significantly for a period of 90 days.
The discussions are being held in a confidential manner amid persistent tensions between the two nations, which hold the largest economies globally.
This round of negotiations is closely monitored by financial markets, although analysts speculate the outcomes may be less fruitful than the previous talks in Switzerland, in which a substantial reduction in tariffs was achieved.
The Chinese delegation is led by Vice Premier He Lifeng, while the American team includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and White House Trade Representative Jamieson Greer.
Reports indicated that communication between President Donald Trump and President Xi Jinping on June 6 classified their recent exchange as ‘very positive.’ During this conversation, Xi urged Trump to ‘correct the course of the great ship of Sino-American relations,’ reflecting ongoing diplomatic maneuvers.
Notably, tensions escalated recently following Trump’s accusations that China was not adhering to the terms of the Geneva truce.
Trump emphasized the need for China to fulfill its obligations, with White House spokesperson Karoline Leavitt indicating that the negotiations would focus specifically on these issues.
A crucial point of contention lies in the shipments of rare earth elements, which are vital for a variety of products such as electric vehicle batteries.
Kathleen Brooks, a research director, noted that the U.S. seeks to restore a previous pace of exports of these strategic metals, which have slowed since trade conflicts escalated under Trump’s administration.
Simultaneously, China is advocating for the U.S. to reconsider immigration restrictions on students and ease limitations on access to advanced technologies, particularly microprocessors.
These negotiations are positioned as critical as both countries navigate their intertwined economic interests.
Data released revealed a significant decline in Chinese exports to the U.S., which dropped by 12.7% in May compared to April, accumulating to $28.8 billion.
This decline is seen against the backdrop of heightened tariffs and trade barriers imposed during the ongoing trade war.
In parallel to these negotiations, the Chinese government is actively engaging with other trading partners to bolster its position.
Recent discussions have occurred with Japan and South Korea, as well as a call between Chinese Premier Le Qiang and Canadian Prime Minister Mark Carney, aiming to mend historically strained relations.
Furthermore, China has proposed a ‘green channel’ to the European Union for facilitating rare earth exports, ahead of an impending summit in July between the EU and China.
The discussions are being held in a confidential manner amid persistent tensions between the two nations, which hold the largest economies globally.
This round of negotiations is closely monitored by financial markets, although analysts speculate the outcomes may be less fruitful than the previous talks in Switzerland, in which a substantial reduction in tariffs was achieved.
The Chinese delegation is led by Vice Premier He Lifeng, while the American team includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and White House Trade Representative Jamieson Greer.
Reports indicated that communication between President Donald Trump and President Xi Jinping on June 6 classified their recent exchange as ‘very positive.’ During this conversation, Xi urged Trump to ‘correct the course of the great ship of Sino-American relations,’ reflecting ongoing diplomatic maneuvers.
Notably, tensions escalated recently following Trump’s accusations that China was not adhering to the terms of the Geneva truce.
Trump emphasized the need for China to fulfill its obligations, with White House spokesperson Karoline Leavitt indicating that the negotiations would focus specifically on these issues.
A crucial point of contention lies in the shipments of rare earth elements, which are vital for a variety of products such as electric vehicle batteries.
Kathleen Brooks, a research director, noted that the U.S. seeks to restore a previous pace of exports of these strategic metals, which have slowed since trade conflicts escalated under Trump’s administration.
Simultaneously, China is advocating for the U.S. to reconsider immigration restrictions on students and ease limitations on access to advanced technologies, particularly microprocessors.
These negotiations are positioned as critical as both countries navigate their intertwined economic interests.
Data released revealed a significant decline in Chinese exports to the U.S., which dropped by 12.7% in May compared to April, accumulating to $28.8 billion.
This decline is seen against the backdrop of heightened tariffs and trade barriers imposed during the ongoing trade war.
In parallel to these negotiations, the Chinese government is actively engaging with other trading partners to bolster its position.
Recent discussions have occurred with Japan and South Korea, as well as a call between Chinese Premier Le Qiang and Canadian Prime Minister Mark Carney, aiming to mend historically strained relations.
Furthermore, China has proposed a ‘green channel’ to the European Union for facilitating rare earth exports, ahead of an impending summit in July between the EU and China.