#USChinaTradeTalks #USChinaTradeTalks

US-China trade talks are currently underway in London, with high-level officials from both countries meeting to ease tensions and resolve trade disputes. The talks come after a preliminary agreement was reached in Geneva last month, which briefly improved relations between the two nations.

*Key Issues:*

- *Trade Disputes*: The US has accused China of slow-walking on commitments, particularly regarding rare earth shipments.

- *Rare Earths*: China holds a near-monopoly on rare earth magnets, crucial for electric vehicle motors, and the US is seeking eased export controls.

- *Tariffs*: The US has imposed tariffs on Chinese goods, leading to a sharp decline in China's exports to the US.

*Recent Developments:*

- *Phone Call between Trump and Xi*: The two leaders discussed trade and agreed to resume rare earth shipments to the US.

- *Temporary Export Licenses*: China has granted temporary export licenses to rare-earth suppliers of top US automakers.

*Potential Outcomes:*

- *Temporary Truce*: While a temporary truce is possible, broader decoupling trends and US pressure on other countries to limit China's involvement in supply chains may hinder a comprehensive trade deal.

- *Global Economic Impact*: The trade tensions have already affected global supply chains, economic growth, and business confidence.