#USChinaTradeTalks

The US and China are holding trade talks in London today, focusing on export controls rather than tariffs. Here's what's at stake¹:

- *Key Discussion Points:*

- *Export Controls*: The US is pushing for China to relax its curbs on rare earth exports, crucial for manufacturing various products, including electronics and electric vehicles.

- *Critical Technologies*: China, on the other hand, wants the US to remove restrictions on China's access to semiconductors, jet engines, and other key technologies.

- *Background*: Both countries have accused each other of violating the trade truce reached on May 12, which aimed to reduce tariffs by 115% for 90 days. The US tightened export controls on semiconductors, while China restricted rare earth supplies.

- *Potential Outcome*: The talks might lead to an understanding that could ease supply chain tensions and prevent further escalation. China has shown some goodwill by granting export licenses for rare earths recently.

- *Delegations*: The US delegation, led by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, will meet with China's delegation, headed by Vice Premier He Lifeng.

These talks are crucial in determining the future of US-China trade relations and potentially impacting global supply chains.