High-level trade talks between the United States and China resumed in London in a renewed attempt to stabilise relations between the world's two largest economies following months of tariff tensions and diplomatic friction. The meeting follows a phone call last week between US President Donald Trump and Chinese President Xi Jinping, which paved the way for a potential breakthrough.
The negotiations were being held at Lancaster House, a historic mansion near Buckingham Palace. The Chinese delegation is led by Vice Premier He Lifeng and Commerce Minister Wang Wentao.
On the American side, Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer are heading the discussions.
Key issues include US restrictions on student visas
The key issues on the table include rare earth exports which are crucial for automotive and tech industries and US restrictions on semiconductors and student visas.
China’s recent move to require licenses for the export of seven rare earth elements has raised global alarm, especially among automakers concerned about supply shortages. Washington has voiced frustration over these controls, warning of production disruptions.
Last month, a temporary truce was agreed upon in Geneva, with both countries announcing a 90-day suspension of the steep tariffs that they had imposed on each other. Despite the easing of tariffs, tensions have continued to simmer over technology access and strategic resources.
US economic adviser Kevin Hassett hinted that a handshake agreement on rare earths could be one of the outcomes of the London meeting. “We’re hoping for a short meeting with a big, strong handshake,” he told CNBC.
UK hosting US-China discussions
Though the United Kingdom is not formally part of the negotiations, it is playing host to the discussions. Treasury Chief Rachel Reeves held separate meetings with both the US and Chinese delegations on Sunday, and Business Secretary Jonathan Reynolds was scheduled to meet with Wang Wentao.
“The UK remains committed to free trade and believes a trade war serves no one’s interests,” the British government said in a statement, welcoming the resumption of dialogue between Washington and Beijing.
(With inputs from the Associated Press)
