#USChinaTradeTalks

US-China trade talks are currently underway in London, led by US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, alongside a Chinese delegation headed by Vice Premier He Lifeng. These talks aim to ease tensions and resolve the ongoing trade dispute between the two nations.

*Key Issues:*

- *Rare Earth Exports*: China dominates the supply of critical minerals, and the US is pushing for resumed shipments. Beijing sees mineral exports as a source of leverage.

- *Tariffs*: The US and China imposed tariffs on each other's goods, with the US threatening to increase tariffs if an agreement isn't reached. A 90-day truce was agreed upon in Geneva, but it's set to expire in August.

- *Technology Access*: The US restricted China's access to certain technologies, including AI chips, which China views as a major point of contention.

*Talks Progress:*

- Despite uncertainty, Trump remains optimistic, stating that the talks should go "very well".

- Both sides are aiming to clarify and solidify agreements, addressing misunderstandings that arose from previous discussions.

- The US team will engage with the Chinese delegation to discuss easing tensions and finding a mutually beneficial agreement.¹ ²

*Potential Outcomes:*

- A potential agreement could lead to reduced tariffs, increased access to Chinese markets, and a more stable trade relationship.

- If talks fail, the US may revert to higher tariff levels, potentially escalating trade tensions further.