The United States and China will meet in London on June 9 to revive high-level trade discussions aimed at easing tensions over rare earth exports, advanced technologies, and mounting tariffs. The meeting follows a recent phone call between President Donald Trump and Chinese President Xi Jlnping.

Both sides have accused each other of backing away from the May Geneva agreement, which temporarily suspended tariffs exceeding 100%. After the call, Trump expressed optimism: "I expect the London meeting to go very well."

U.S. Delegation Led by Bessent, Lutnick, and Greer to Face Chinese Vice Premier

The American delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, who are expected to meet with Chinese Vice Premier He Lifeng.

Lutnick’s participation could indicate Washington’s willingness to reconsider certain export controls viewed by Beijing as obstacles to long-term economic growth.

Rare Earths: Leverage, Strategy, and Supply Chain Pressure

In May, China boosted rare earth exports by 23% to 5,864.60 metric tons — the highest monthly volume in a year — despite earlier restrictions. This suggests certain exceptions remain in place.

📉 In contrast, magnet exports, crucial for electric motors and semiconductor manufacturing, fell by half in April, disrupting several European factories and raising alarm bells among chipmakers about looming shortages.

So far in 2025, China has exported 24,827 tons of 17 rare earth minerals — slightly up from 24,266 tons in the same period last year.

Both Powers Signal Openness to De-escalation

While Washington wants rare earth flows restored and technical trade barriers lifted, Beijing seeks tariff relief, loosened export restrictions, and more openness toward Chinese students.

Xi Jlnping, after the phone call, said he hopes the U.S. will “remove negative measures taken against China.” China’s Foreign Ministry confirmed that Trump expressed a warm welcome for Chinese students studying in the U.S.

At the same time, Chinese state media criticized the U.S. for viewing economic ties through a national security lens. In a sharp editorial, Xinhua warned that this mindset is “the greatest barrier to mutually beneficial cooperation” unless it changes.

Tariff Decisions Loom as Clock Ticks

The current U.S. tariff waiver on Chinese goods is set to expire in August, unless extended. The White House has hinted that Trump may reinstate April's higher tariff rates or even exceed the current 10% baseline.

Although the Trump–Xi phone call sparked brief optimism on Wall Street, investors remain cautious. So far, Trump has secured only one new trade agreement during his term — with the United Kingdom.

China’s Internal Struggles Fuel Desire for Stability

Even as Beijing uses export limits as a bargaining chip, it also faces domestic pressures: persistent deflation and rising unemployment.

This makes a lasting truce in trade tensions more valuable for Xi’s administration. The London talks could mark a turning point — both sides have much at stake, and much to gain.



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