#USChinaTradeTalks #USChinaTradeTalks
Here’s the latest update on the #USChinaTradeTalks:
🗓️ What’s happening now?
Top U.S. and Chinese trade officials have convened in London (Lancaster House) on June 9–10, 2025, focusing on resolving heightened tensions around tariffs, export controls, and especially rare-earth exports and semiconductor technologies .
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🇺🇸🇨🇳 Main talking points:
Rare-earth minerals: China previously capped exports, causing bottlenecks in industries like EVs, aerospace, and defense. The U.S. is pushing for an immediate resumption of those exports .
Tech & semiconductors: The U.S. is considering easing some export restrictions to China if China reciprocates by opening up rare-earth supply .
Both sides are trying to rebuild momentum after a preliminary Geneva deal last month that temporarily reduced tariffs and created a 90‑day window for progress .
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🔄 Market & investor reaction:
Financial markets rallied on optimism from the talks:
Nasdaq rose ~0.3%, Hang Seng jumped ~1.4%, while U.S. futures saw modest gains .
Positive signs around rare-earth export licenses helped semiconductor stocks like Qualcomm and AMD surge 4–5% .
The U.S. dollar softened as focus shifted towards trade resolution .
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🧩 Why it matters:
1. Global supply chains: An agreement on rare-earths and tech flows could reduce disruptions and inflationary pressure, especially in manufacturing sectors like auto and defense.
2. Geopolitical significance: A successful breakthrough would mark a crucial diplomatic de-escalation, albeit within a broader context of strategic tech rivalry.
3. Economic outlook: With high tariffs (up to 145%) still in force, a more permanent deal beyond the Geneva “pause” could stabilize trade and encourage more investment .
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🔮 Outlook:
Day 2 of negotiations is underway (June 10). Analysts expect potential small wins—like rare-earth releases and limited easing on tech restrictions—but not a sweeping, structural deal .
Sources describe the first day as “good” or “fruitful,” with
