#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

#USChinaTrade