#USChinaTradeTalks

What’s Happening?

On June 9, 2025, U.S. and Chinese delegations—led by Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng—met at Lancaster House in London for a key round of trade negotiations .

Talks follow a 90-day tariff truce initiated at the Geneva meeting in mid-May, with both sides seeking to rebuild cooperation .

Central topics: rareearth minerals, chip/tech export controls, and broader trade disputes. The U.S. is urging China to restore rare-earth exports, while China is pressing the U.S. to relax chip export bans .

📉 Why It Matters

China’s exports to the U.S. dropped ~35% in May—the sharpest decline since early 2020—highlighting economic strain and making swift agreements more urgent .

The U.S. economy is showing signs of strain too, with inflation and job data, but remains resilient—making these talks crucial for the global outlook .

🔄 What’s on the Table

U.S. Offer: Potential easing of some chip export restrictions, provided China increases supplies of rare-earth minerals like neodymium and terbium .

China’s Position: Continue its state-led economic model while seeking more favorable access to U.S. semiconductors and pushing back on export curbs .

☂️ Outlook

Expect tactical agreements—like rare-earth commitments—but not sweeping structural reforms.

Any breakthroughs could ease global supply chain tensions and support recovery in tech and industrial sectors.

✅ In Summary:

Role Advantage

✅ U.S. leverage Uses tech export policy and rare-earth supply for negotiation

✅ China leverage Holds key global mineral supply chains

⏳ Outcome Likely small wins (e.g., rare-earth and chip trickle flow), but deeper trade resolutions remain distant—result of their June 9–10 London talks

Your thoughts? Could easing chip or rare-earth restrictions kick-start a new phase in global trade? Let’s discuss!