US–China trade talks resume in London 

Trade talks between top US and Chinese officials resumed in London on Tuesday, aiming to resolve tensions over export controls on critical goods such as rare earths, which have raised fears of a global supply chain shock and slower economic growth.

The discussions follow a preliminary deal struck in Geneva last month to ease some tariffs. However, fresh concerns emerged after Washington accused Beijing of restricting exports vital to sectors including electric vehicles, aerospace, and semiconductors.

The talks, held at Lancaster House, come amid sharp economic pressure, with Chinese exports to the US plunging 34.5 per cent in May, the steepest decline since the pandemic began. While the US economy has so far absorbed the impact with limited inflationary effects, investor confidence remains fragile.

Leading the US delegation are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China is represented by Vice Premier He Lifeng and Commerce Minister Wang Wentao. Lutnick’s presence highlights the central role of export controls, particularly concerning rare earth magnets, a field where China holds a near-monopoly.

The meeting comes days after Presidents Trump and Xi held their first direct talks since January, during which Xi reportedly agreed to resume rare earth shipments to the US. China has since granted temporary export licences to suppliers of top US automakers, but global factories remain anxious about long-term supply security.

Attribution: Reuters
Subediting: M. S. Salama