Here’s a detailed update on #USChinaTradeTalks as of June 9, 2025:
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🔹 What’s Going On in London?
High-level trade negotiations kicked off today at Lancaster House in London. The goal: revive and build on the Geneva truce from May 12, in which both the U.S. and China agreed to reduce tariffs temporarily—U.S. from ~145% down to ~30%, China from ~125% to ~10% for 90 days .
🎯 Main Focus: Rare Earths & Tech Export Controls
The U.S. delegation—led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and USTR Jamieson Greer—is pressing China for a formal “handshake” commitment to ease rare-earth export restrictions after a positive phone call between Presidents Trump and Xi on June 5 .
Bloomberg reports the U.S. is open to rolling back some advanced tech export curbs in exchange for China lifting restrictions on rare earths, which are critical for EVs, aerospace, and defense .
📉 Why It Matters
China’s exports to the U.S. plunged ~34–35% in May—a dramatic decline tied to tariff pressure .
Market optimism increased ahead of the talks, buoyed by signs of easing tensions and rare-earth supply relief .
Boeing even resumed aircraft deliveries to China—sending a 737 MAX on a 59‑hour journey to Xiamen Airlines—further signaling the potential thaw .
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⚠️ Challenges Ahead
Execution gap: U.S. officials say China has slowed or delayed its rare-earth export commitments, testing the Geneva truce .
Structural hurdles: China’s new lead negotiator, Vice Premier He Lifeng, is pushing for a tougher, more reciprocal deal—going beyond tariffs to include broader industrial and strategic demands .
Limited expectations: Analysts from Reuters and the Washington Post anticipate only a limited agreement, likely delaying structural issues like economic model reform and tech controls .
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🎥 In Case You Missed It
Here’s the most comprehensive overview from Reuters, featuring live coverage of today’s discussions:
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✅ What to Watch Next
Topic Why It Matters
Rare-earth export easing Seesaw indicator of China’s commitment
Tech export rollbacks U.S. could unwind key restrictions
Tariff extension Can the 90-day pause be prolonged?
Market reaction Equities and currencies will reflect sentiment
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Bottom line: Today’s London talks are a narrow, tactical negotiation—focused on specific concessions, not a sweeping trade agreement. A partial deal on rare-earths and tech exports could provide relief, but deep-rooted tensions remain.
Let me know if you’d like a live market snapshot, hist
