#USChinaTradeTalks

U.S.–China Trade Talks Resume in London Amid Rare‑Earth Focus

High‑level U.S. and Chinese delegations met in London’s Lancaster House on June 9–10, 2025, aiming to stabilize a fragile truce struck in Geneva last month (reuters.com). The talks, led by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, focused on easing export‑control disputes involving rare‑earth elements—critical for electric vehicles, aerospace, and semiconductors (reuters.com). Beijing recently granted temporary licenses for such exports and reduced tariffs, signaling goodwill (wsj.com). In May, China’s exports to the U.S. plunged approximately 34–35%, the steepest decline since early 2020 (reuters.com). Market reaction was cautiously optimistic: semiconductor stocks rallied, U.S. Treasury yields eased, and global equities edged higher (wsj.com). However, the outcome remains uncertain, with both sides under pressure to secure a durable agreement to prevent further supply‑chain disruptions and rising geopolitical tension.