#USChinaTradeTalks

The latest US-China trade talks are taking place in London, following a recent phone call between US President and Chinese President . These discussions aim to address ongoing trade disputes, particularly around rare earth elements and advanced technologies—topics that are central to both nations’ economic and strategic interests.

Key points from the current round of negotiations:

- Focus Areas: Rare earth minerals and magnets, semiconductor technology, and tit-for-tat tariffs are major topics.

- Recent Developments:

- In May, both countries agreed to temporarily reduce tariffs (US tariffs on Chinese goods from 145% to 30%, China’s tariffs on US imports from 125% to 10%) for 90 days.

- Despite this truce, both sides have accused each other of violating the agreement, especially regarding rare earth exports and US technology restrictions.

- China recently approved some rare earth export licenses, but did not specify which countries were involved.

- Strategic Leverage:

- China controls about 90% of global rare earth processing, making these minerals a powerful bargaining chip.

- The US is pushing for restored access to these materials, while China seeks relief from US export controls on advanced technology.

- Outlook: Analysts expect only a limited agreement from the London talks, with both sides seeking to preserve a fragile truce rather than resolve all underlying conflicts.

In summary, the current US-China trade talks are focused on easing tensions over rare earths and technology, but a comprehensive deal is considered unlikely in the near term.