#USChinaTradeTalks
🇺🇸🇨🇳 US–China Trade Talks Resume in London
1. Background & Stakes
After a 90-day truce brokered in Geneva (May 2025)—which saw U.S. tariffs drop from 145% to 30% and China’s from 125% to 10%—tensions have reignited. Friction over semiconductors, rare-earth minerals, and student visas threatens to derail progress.
2. Who’s Negotiating
U.S. delegation: Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, USTR Jamieson Greer
China: Vice Premier He Lifeng
Their goal: move beyond the Geneva ceasefire and address long-term challenges around tech export controls and strategic mineral supply chains.
3. Key Issues on the Table
Rare Earths & Export Controls:
China controls 99% of rare-earth processing and has halted exports citing strategic concerns. The U.S. seeks relief to protect supply chains in EVs, aerospace, and defense.
Tech & Semiconductors:
Washington’s expanded export bans—targeting sectors like AI and companies like Huawei—have provoked Beijing. London talks aim to resolve or manage these disputes.
Wider Tensions:
Issues like student visa restrictions, Taiwan, and fentanyl trafficking loom large, complicating trade-focused diplomacy.
4. Market Response
Markets showed cautious optimism.
U.S.: S&P 500, Dow, and Nasdaq futures traded flat to slightly lower
Asia: Kospi +1.9%, Nikkei +1.1%
Oil: Brent steady at ~$66/barrel, buoyed by hopes for trade de-escalation